Farm System Reform Act of 2023

Farm System Reform Act of 2023

This bill places a moratorium on large concentrated animal feeding operations (CAFOs); expands country-of-origin labeling; and expands requirements in the livestock, poultry, and meat markets.

Specifically, under the bill, a large CAFO may not commence or expand operations and, after January 1, 2041, may not continue to operate.

Further, the Department of Agriculture must provide grants to eligible animal feed operation (AFO) owners to pay off related debt and to transition the property to alternative agriculture activities.

Integrators (certain individuals or entities that enter into arrangements with contract growers to raise and care for livestock or poultry at an AFO) that exercise substantial operational control of an AFO are liable and subject to civil action for an AFO's operation, including for dead animal and manure disposal, and for the discharge of air and water pollutants.

The bill also expands country-of-origin labeling requirements to include beef, pork, and dairy products.

Further, the bill expands requirements and prohibitions under the Packers and Stockyards Act of 1921 in order to increase competition and transparency in the livestock, poultry, and meat markets, including by

• prohibiting the use of forward contracts (i.e., future livestock delivery to a packer) unless certain requirements are met, such as a firm base price and competitive bidding;
• establishing that a minimum of 50%, with exceptions, of a covered packer's daily volume of livestock slaughter must be purchased through spot market sales (i.e., the negotiated purchase or sale of livestock that meets specific pricing, timing, and competitive bidding requirements) from nonaffiliated producers; and
• providing USDA with additional enforcement authorities over live poultry dealers.