Capital Update – For the Week Ending Jan. 17, 2025

USDA Drops Proposal to Change Packers and Stockyards Act

What happened: In a big win for the livestock industry, the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) withdrew a proposed regulation to the Packers and Stockyards Act (PSA) that didn’t require proof of harm to competition when bringing PSA lawsuits.

Under the “Fair and Competitive Livestock and Poultry Markets” rule, AMS sought to make “unfair practices and devices” related to livestock transactions as per se – that is, inherent – violations of the PSA even if such actions didn’t harm competition.

Proving harm to competition is an element of PSA claims that federal courts repeatedly have held is required and that Congress explicitly has refused to eliminate.

NPPC’s take: In comments submitted in September, NPPC expressed opposition to eliminating the requirement that plaintiffs in PSA cases prove harm to competition. It also pointed out that USDA’s attempt to change that prerequisite exceeded its statutory authority.

Why it matters: The PSA was enacted to protect competition in the meat and poultry industries, ensuring fair markets and competitive pricing opportunities. Removing the requirement to show anticompetitive harm could have subjected swine contractors, including independent producers using production contracts, and packers to burdensome and costly litigation.

NPPC Comments on USDA Salmonella Regulation

What happened: In comments submitted to USDA’s Food Safety and Inspection Service (FSIS), NPPC raised concerns about the scientific validity and practicality of reaching the goal of protecting public health through the agency’s proposed “Salmonella Framework for Raw Poultry Products.”

Under the regulation, FSIS would classify certain Salmonella levels and serotypes in raw poultry products as adulterants and, therefore, prohibit them from entering the food supply. Additionally, poultry slaughter operations would need to include in their procedures for addressing enteric diseases, such as Salmonella, microbial monitoring programs with statistical process control methods and specific sampling methods. The agency is proposing changes to its existing prevalence-based performance standards approach to Salmonella despite acknowledging that it “has been effective in reducing the proportion of poultry products contaminated with Salmonella.”

NPPC’s take: NPPC pointed out in its comments that to reduce illnesses, risk-based performance standards will incentivize establishments to evaluate their status by conducting Salmonella quantification testing. An adulterated determination can result in unintended consequences, such as food waste of safe products, and will not help protect public health. NPPC also noted that because Salmonella isn’t an “added” substance – it occurs naturally – it doesn’t meet the statutory definition of an adulterant, and that case law does not support Salmonella being classified as such.

NPPC said the microbiological testing FSIS is proposing involves a small portion of product, so is not representative of all products. Such testing should be used only for verification. The organization also cautioned FSIS about requiring the use of risk assessments that rely on serotypes to determine the bacterium’s virulence. Other factors, including handling, preparation, and infectious dose, also play a role in causing Salmonella illnesses.

Why it matters: Consumer health and safety is at the forefront of the pork industry’s practices. Although the proposed rule is focused on raw poultry products, NPPC acknowledges the importance of food safety and taking a scientific approach to protect our nation’s food. Salmonella continues to be a high priority for the pork industry, as producers and processors implement strategies and look for improved ways to address the bacterium. The pork industry will continue its collaborative efforts with FSIS to deal with Salmonella through informed policy.

Meat Critical Part of American Diet, Says NPPC

What happened: NPPC submitted oral comments on the scientific report from the advisory committee for the 2025 Dietary Guidelines for Americans, expressing concerns with the panel’s recommendation to reduce red meat, such as pork, and replace it with plant-based proteins. “The repercussions of this decision would drastically affect the nutrition of Americans,” said Dr. Ashley Johnson, NPPC’s director of food policy.

Johnson noted that pork is a nutrient-dense protein, containing essential nutrients such as iron, zinc, B vitamins, and amino acids. Replacing animal-based proteins with plant-based ones would create a gap in those nutrients since plant proteins don’t have the same nutrient profile as red meat. Animal-based proteins also are more digestible and bioavailable than plant proteins, she said.

NPPC’s take: NPPC, which does not agree with the advisory committee’s recommendation on meat, pointed out that “[t]here has been no scientific justification for reducing red meat and replacing it with plant-based proteins. The current nutritional science does not support the reduction of meat but instead supports the critical need for meat in a nutritious diet. Lean pork is a heart healthy protein choice that is versatile, flavorful, affordable, and provides protein packed with essential nutrients. The Dietary Guidelines for Americans need to reflect nutrition science and continue to recommend animal-based protein such as red meat as a critical part of the American diet.”

Why it matters: The Dietary Guidelines for Americans, which are written by the departments of Agriculture (USDA) and Health and Human Services (HHS), inform all federal nutrition programs, including school breakfast and lunch, and provide dietary recommendations used by health professionals.

NPPC Lays Out 2025 Pork Industry Priorities

What happened: As the new White House administration and Congress get underway, NPPC has laid out its legislative and regulatory priorities for the year. Here are the top, but not exclusive, issues of importance to the U.S. pork industry:

• Farm Bill – NPPC wants a new Farm Bill as soon as possible, with language fixing the problems caused by California’s Proposition 12. It also will work to include authorization for programs that promote U.S. pork exports and continue to push for full authorization of those that prevent, prepare for, and respond to foreign animal diseases.
• Labor and Immigration – NPPC will continue to urge congressional lawmakers and the Trump administration to address livestock agriculture’s labor shortage, asking that H-2A visas be extended to year-round workers so they can be better utilized by pork producers.
• Trade – Pressing issues include renewal of the African Growth and Opportunities Act, which expires at the end of the year, and the U.S. Generalized System of Preferences program, which expired in 2020. Both provide duty-free treatment of goods exported to the United States from eligible countries and serve as tools to ensure U.S. products are given “reasonable and equitable” access to those countries’ markets. NPPC also will weigh in on any actions related to tariffs.
• Federal Funding Bills – NPPC will use the appropriations process to work to increase funding for the U.S. Swine Health Improvement Plan, which will establish health standards for the control of foreign animal diseases. NPPC also prioritizes reauthorizing the Livestock Mandatory Reporting program, which provides timely, reliable public market information on sales to meatpackers of cattle, swine, lambs, and the subsequent sale of meat products until the program can be fully reauthorized.
• Taxes – NPPC will urge lawmakers to extend tax provisions beneficial to agriculture, including the estate tax exemption amount, which is set to go from $11.2 million to $5.49 million at the end of 2025, and the qualified business deduction, which allows a 20% reduction in certain business income but expires at year’s end. Additionally, the bonus depreciation provision, which allows for the cost of qualified property to be deducted in the year it is placed into service, is continuing to phase out.
• Other Issues – Additional matters that may come up include environmental regulations on Waters of the United States and farm emissions, and issues related to federal pork purchases and the 2025 Dietary Guidelines for Americans.

Learn more: For more information about NPPC’s issues, click here.

Pork Leadership Institute 2025 Class Selected

What happened: NPPC and the National Pork Board recently announced the 2025 Pork Leadership Institute class. PLI is a premier program dedicated to equipping pork producers with the knowledge and skills to lead the pork industry into the future.

The yearlong program is comprised of five sessions designed to provide a deep understanding of various aspects of the pork industry. These include the federal legislative and regulatory processes, the importance of international trade, the roles of the national and state pork associations, and contemporary challenges faced by pork producers. Additionally, participants get extensive media and communications training to emerge as effective grassroots advocates for the industry.

Collaborating closely with state pork association executives and field representatives, NPPC and the Pork Board selected the following individuals for the PLI Class of 2025: Nicholas Bundermann (North Dakota), Andrew Erickson (Illinois), Bailey Fritsch (Wisconsin), Brian Gordon (Missouri), Dan Howell (South Dakota), Mikel Jones (Iowa), Randy Kuker (Illinois), Jennifer Martin (Colorado), Forrest McKenzie (Michigan), Nathan Nieuwendorp (Iowa), Alanna Paden (Mississippi), Matt Paschen (Indiana), Samantha Raynor (North Carolina), Tanner Smith (Indiana), Weston Specht (Pennsylvania), Brian Strobel (Tennessee), and Matt Thome (Iowa).

Why it matters: PLI is instrumental in shaping the success of pork producers by cultivating knowledgeable industry ambassadors and future leaders. “As we step into 2025, ensuring the long-term success of America’s pork producers remains our priority,” said Bryan Humphreys, NPPC’s CEO. “The Pork Leadership Institute equips participants with the tools and knowledge to advocate for their operations and the broader industry.”

Learn more: For more information about the Pork Leadership Institute, click here.

Look Ahead in Washington

Inauguration Day: On Monday, Jan. 20, Donald Trump will be sworn in as the 47th president of the United States. He’ll take the oath of office at noon in the U.S. Capitol.

USDA Nominee Hearing Set: On Thursday, Jan. 23 at 10:00 a.m. ET, the Senate Agriculture Committee will hold a confirmation hearing for President Trump’s Agriculture Secretary pick Brooke Rollins. Click here to watch.