What This Bill Does
This bill stops large factory farms (called large concentrated animal feeding operations or large CAFOs) from expanding and requires them to shut down by 2040. It strengthens rules governing companies that buy livestock and poultry from farmers. It also requires labels on beef, pork, and dairy products showing what country they came from.
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Who It Affects
Large factory farms that confine thousands of animals. Farmers who raise livestock or poultry under contracts with big companies. Livestock processors (called packers) and poultry dealers. Farmers who own smaller operations. Consumers buying meat and dairy products.
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Key Provisions
- Large factory farms cannot start or expand operations immediately after the bill becomes law, and must completely stop operating as large CAFOs by January 1, 2040 (Sec. 102)
- A transition assistance program provides grants to eligible farm owners to help them stop operating factory farms and switch to other activities like pasture-based livestock or organic crops (Sec. 103)
- Companies that control how factory farms operate become legally responsible for the farm's waste disposal, pollution, and harm to neighbors and contract farmers (Sec. 104)
- Livestock processors must buy at least 50 percent of animals they slaughter from independent farmers on the open spot market, rather than through long-term contracts (Sec. 202A)
- Labels on beef, pork, and dairy products must show the country where the product came from, and "Product of U.S.A." labels can only be used if the animal was born, raised, and slaughtered entirely in the United States (Sec. 301, Sec. 302)
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What Changes
Large factory farms cannot expand right away and must close by 2040. Farmers can apply for money to help transition out of factory farming. Companies that control factory farms now face legal responsibility for pollution and damage. Livestock processors must buy more meat from independent farmers through spot market purchases. Beef, pork, and dairy product labels must clearly show country of origin. The phrase "Product of U.S.A." on meat labels now requires the entire animal was born, raised, and slaughtered in the United States.
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Important Definitions
**Animal Feeding Operation (AFO):** A facility where animals are confined and fed for at least 45 days in any 12-month period and crops are not grown in the normal growing season.
**Large Concentrated Animal Feeding Operation (Large CAFO):** An animal feeding operation with a certain minimum number of animals, depending on the type. Examples include 700 dairy cows, 2,500 hogs weighing 55 pounds or more, 10,000 sheep, or 55,000 turkeys.
**Contract Grower:** A farmer who owns an animal feeding operation and raises livestock or poultry under a written contract with a larger company.
**Integrator:** A company that contracts with farmers to raise livestock or poultry for slaughter under the company's instructions and control.
**Manure:** Animal waste including feces, urine, litter, bedding, compost, and wastewater commingled with these materials.
**Agronomic Requirement:** The amount of nutrient needed to achieve a reasonable crop yield, based on soil testing and university fertility rates.
**Formula Price:** A price for livestock that is not set until after the contract is signed.
**Spot Market Sale:** The immediate purchase and sale of livestock at a fixed price with slaughter occurring within 7 days.
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Effective Date
Rules prohibiting packers from owning and feeding livestock take effect on the date the bill becomes law, except packers already doing this have until 18 months later (for hogs) or 180 days later (for other livestock). The transition assistance program must begin within 180 days of the bill becoming law. Other provisions take effect on the bill's enactment date unless otherwise specified.
I
118TH CONGRESS
1ST SESSION
H. R. 797
To place a moratorium on large concentrated animal feeding operations,
to strengthen the Packers and Stockyards Act, 1921, to require country
of origin labeling on beef, pork, and dairy products, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 2, 2023
Mr. KHANNA (for himself, Ms. BUSH, Mr. LYNCH, Ms. PRESSLEY, Ms.
BARRAGA´N, Mr. GOMEZ, Mr. NADLER, Mr. BLUMENAUER, Ms. JAYAPAL,
Mr. BOWMAN, Mr. POCAN, Mr. LEVIN, Mr. KRISHNAMOORTHI, Ms.
MCCOLLUM, Mr. COHEN, Mr. RASKIN, Mr. MCGOVERN, Ms. MENG, and
Ms. NORTON) introduced the following bill; which was referred to the
Committee on Agriculture, and in addition to the Committee on Trans-
portation and Infrastructure, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
A BILL
To place a moratorium on large concentrated animal feeding
operations, to strengthen the Packers and Stockyards
Act, 1921, to require country of origin labeling on beef,
pork, and dairy products, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
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•HR 797 IH
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
1
(a) SHORT TITLE.—This Act may be cited as the
2
‘‘Farm System Reform Act of 2023’’.
3
(b) TABLE OF CONTENTS.—The table of contents for
4
this Act is as follows:
5
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I—ANIMAL FEEDING OPERATIONS
Sec. 101. Definitions.
Sec. 102. Moratorium on large concentrated animal feeding operations.
Sec. 103. Voluntary debt forgiveness and transition assistance program for ani-
mal feeding operations.
Sec. 104. Integrator responsibilities and liabilities.
TITLE II—AMENDMENTS TO PACKERS AND STOCKYARDS ACT,
1921
Sec. 201. Definitions.
Sec. 202. Unlawful practices.
Sec. 203. Spot market purchases of livestock by packers.
Sec. 204. Investigation of live poultry dealers.
Sec. 205. Award of attorney fees.
Sec. 206. Technical amendments.
TITLE III—LABELING OF MEAT AND DAIRY PRODUCTS
Sec. 301. Restoration of mandatory country of origin labeling for beef and
pork; inclusion of dairy products.
Sec. 302. Truth in labeling for meat and meat food products.
SEC. 2. DEFINITION OF SECRETARY.
6
In this Act, the term ‘‘Secretary’’ means the Sec-
7
retary of Agriculture.
8
TITLE I—ANIMAL FEEDING
9
OPERATIONS
10
SEC. 101. DEFINITIONS.
11
In this title:
12
(1) AGRONOMIC REQUIREMENT.—
13
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•HR 797 IH
(A) IN GENERAL.—The term ‘‘agronomic
1
requirement’’ means the quantity of nutrient
2
necessary to achieve a reasonable yield goal for
3
a crop, as determined based on land grant uni-
4
versity fertility rates, soil testing for available
5
nutrients, manure analysis, and other planned
6
nutrient applications.
7
(B) EXCLUSIONS.—Planned nutrient appli-
8
cations under subparagraph (A) do not include
9
nutrient indices, risk indices, or other methods
10
that allow land application of manure in excess
11
of crop need.
12
(2) ANIMAL FEEDING OPERATION; AFO.—
13
(A) IN GENERAL.—The term ‘‘animal feed-
14
ing operation’’ or ‘‘AFO’’ means a lot or facility
15
at which—
16
(i) for not less than a total of 45 days
17
in any 12-month period, animals (other
18
than aquatic animals) are—
19
(I) stabled or confined; and
20
(II) fed or maintained; and
21
(ii) crops, vegetation, forage growth,
22
or postharvest residues are not sustained
23
in the normal growing season over any por-
24
tion of the lot or facility.
25
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•HR 797 IH
(B) AGGREGATION.—2 or more lots or fa-
1
cilities described in subparagraph (A) shall con-
2
stitute a single animal feeding operation if the
3
lots or facilities—
4
(i) are located within 3 miles of each
5
other; and
6
(ii) are under common ownership or
7
control.
8
(C) EXCLUSION.—The term ‘‘animal feed-
9
ing operation’’ or ‘‘AFO’’ does not include a
10
stockyard (as that term is defined in section
11
302(a) of the Packers and Stockyards Act,
12
1921 (7 U.S.C. 202(a))).
13
(3) LARGE CONCENTRATED ANIMAL FEEDING
14
OPERATION; LARGE
CAFO.—The term ‘‘large con-
15
centrated animal feeding operation’’ or ‘‘large
16
CAFO’’ means an AFO at which are present not
17
less than—
18
(A) 700 mature dairy cows, milked or dry;
19
(B) 1,000 veal calves;
20
(C) 1,000 cattle (including heifers, steers,
21
bulls, cows, and calves) other than mature dairy
22
cows or veal calves;
23
(D) 2,500 swine, each weighing not less
24
than 55 pounds;
25
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•HR 797 IH
(E) 10,000 swine, each weighing not more
1
than 55 pounds;
2
(F) 500 horses;
3
(G) 10,000 sheep or lambs;
4
(H) 55,000 turkeys;
5
(I) in the case of an AFO that uses a liq-
6
uid manure handling system—
7
(i) 30,000 laying hens or broilers; or
8
(ii) 5,000 ducks; or
9
(J) in the case of an AFO that uses a sys-
10
tem other than a liquid manure handling sys-
11
tem—
12
(i) 125,000 chickens (other than lay-
13
ing hens);
14
(ii) 82,000 laying hens; or
15
(iii) 30,000 ducks.
16
(4) CONTRACT GROWER.—The term ‘‘contract
17
grower’’ means an owner of an AFO that raises live-
18
stock or poultry pursuant to a written contract,
19
marketing arrangement, or other arrangement with
20
an integrator.
21
(5)
INTEGRATOR.—The
term
‘‘integrator’’
22
means an individual or entity that contracts with a
23
contract grower under a growout contract, mar-
24
keting arrangement, or other arrangement under
25
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•HR 797 IH
which the contract grower raises and cares for live-
1
stock or poultry at an AFO in accordance with the
2
instructions of the integrator for the purpose of
3
slaughtering the livestock or poultry or selling the
4
livestock or poultry for slaughter, if the livestock or
5
poultry is sold or shipped in commerce (as described
6
in section 2(b) of the Packers and Stockyards Act,
7
1921 (7 U.S.C. 183)).
8
(6) MANURE.—The term ‘‘manure’’ means—
9
(A) the fecal and urinary excretions of live-
10
stock and poultry; and
11
(B) litter, bedding, compost and raw mate-
12
rials, process wastewater, and other materials
13
commingled with the excretions described in
14
subparagraph (A) or set aside for disposal after
15
such commingling.
16
SEC. 102. MORATORIUM ON LARGE CONCENTRATED ANI-
17
MAL FEEDING OPERATIONS.
18
(a) IN GENERAL.—No large CAFO may commence
19
or expand operations on or after the date of enactment
20
of this Act.
21
(b) CESSATION OF OPERATIONS.—No large CAFO
22
may continue to operate as a large CAFO after January
23
1, 2040.
24
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•HR 797 IH
(c) PENALTIES.—Any person that violates subsection
1
(a) or (b) may be assessed a civil penalty of up to $10,000
2
per violation, per day, in addition to any other applicable
3
statutory civil penalty or monetary damages assessed pur-
4
suant to any State common law judgment.
5
SEC. 103. VOLUNTARY DEBT FORGIVENESS AND TRANSI-
6
TION ASSISTANCE PROGRAM FOR ANIMAL
7
FEEDING OPERATIONS.
8
(a) DEFINITION OF ELIGIBLE ENTITY.—
9
(1) IN GENERAL.—In this section, the term ‘‘el-
10
igible entity’’ means an owner of an AFO.
11
(2) EXCLUSION.—In this section, the term ‘‘eli-
12
gible entity’’ does not include an owner of an AFO
13
that is an integrator.
14
(b) ESTABLISHMENT.—Not later than 180 days after
15
the date of enactment of this Act, the Secretary shall carry
16
out a program to provide grants to eligible entities to per-
17
manently transition from operating an AFO to carrying
18
out other activities on the property on which the AFO is
19
located.
20
(c) PAYMENTS.—Under the program established
21
under subsection (b), the Secretary shall provide grants
22
to eligible entities—
23
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•HR 797 IH
(1) to partially or fully pay off any outstanding
1
debt of the eligible entity that was incurred to con-
2
struct and operate the AFO; and
3
(2) to cover costs relating to the transition of
4
the property on which the AFO is located to be used
5
for alternative agriculture activities, such as raising
6
pasture-based livestock, growing specialty crops, or
7
organic commodity production.
8
(d) REQUIREMENT.—As a condition of receiving a
9
grant under this section, an eligible entity shall provide
10
to the Secretary a working lands easement on the property
11
on which the AFO is located that prohibits—
12
(1) the operation of the AFO and any associ-
13
ated waste management system on the easement
14
area; and
15
(2) the use of the easement area for a spray
16
field or land application of manure at rates exceed-
17
ing crop agronomic requirements for nitrogen and
18
phosphorus.
19
(e) FUNDING.—
20
(1) IN GENERAL.—On the first October 1 after
21
the date of enactment of this Act, and on each Octo-
22
ber 1 thereafter, out of any funds in the Treasury
23
not otherwise appropriated, the Secretary of the
24
Treasury shall transfer to the Secretary to carry out
25
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•HR 797 IH
this section $10,000,000,000, to remain available
1
until expended.
2
(2) RECEIPT
AND
ACCEPTANCE.—The Sec-
3
retary shall be entitled to receive, shall accept, and
4
shall use to carry out this section the funds trans-
5
ferred under paragraph (1), without further appro-
6
priation.
7
SEC. 104. INTEGRATOR RESPONSIBILITIES AND LIABIL-
8
ITIES.
9
(a) RESPONSIBILITIES AND LIABILITIES.—
10
(1) IN GENERAL.—An integrator that exercises
11
substantial operational control of an AFO, as de-
12
scribed in subsection (b), shall be responsible and
13
liable for, with respect to the operation of the
14
AFO—
15
(A) the disposal of dead animals;
16
(B) the disposal of manure, excrement,
17
and other waste;
18
(C) the discharge or release of any air pol-
19
lutant, including greenhouse gases, from any
20
source located on or activity occurring at the
21
AFO, including enteric processes, manure, and
22
animal feed;
23
(D) the discharge of any pollutant to
24
groundwater or any surface water body, includ-
25
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•HR 797 IH
ing the production area, manure storage, ma-
1
nure land application area (crop field), tile
2
drain, and agricultural stormwater runoff of the
3
AFO;
4
(E) any harm suffered by the contract
5
grower of the AFO or a third party from any
6
activity described in subparagraphs (A) through
7
(D), or from any other on-property or off-prop-
8
erty contamination, including following an ex-
9
treme weather event; and
10
(F) any adverse health impacts, property
11
value diminution, and loss of use and enjoyment
12
of property suffered by neighboring residents of
13
the AFO due to the operation of the AFO.
14
(2) DUTIES NOT TRANSFERABLE.—The respon-
15
sibilities and liabilities of an integrator under this
16
subsection
shall
be
nondelegable
and
17
nontransferrable to any third party, including any
18
contract grower.
19
(b) SUBSTANTIAL OPERATIONAL CONTROL.—An in-
20
tegrator exercises substantial operational control of an
21
AFO if the integrator—
22
(1) holds an ownership interest in the livestock
23
or poultry, land, or other capital of the AFO;
24
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•HR 797 IH
(2) through a growout contract, marketing ar-
1
rangement, or other arrangement, or through direct
2
supervision of, or on-site participation in, activities
3
at the AFO, controls—
4
(A) the activity of persons working at the
5
AFO;
6
(B) the operation, management, or waste
7
management practices of the AFO; or
8
(C) the manner in which livestock or poul-
9
try at the AFO are grown, fed, watered, venti-
10
lated, heated, cooled, or medicated;
11
(3) supplies feed, pharmaceuticals, or other in-
12
puts to the AFO; or
13
(4) requires a capital investment from the con-
14
tract grower of the AFO for erecting or expanding
15
facilities at the AFO.
16
(c) CIVIL ACTIONS.—
17
(1) IN GENERAL.—Any person may—
18
(A) bring a civil action against an inte-
19
grator in an appropriate court to redress any
20
violation of this section or any other law relat-
21
ing to the activities described in this section;
22
and
23
(B) obtain appropriate relief in a civil ac-
24
tion under subparagraph (A).
25
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•HR 797 IH
(2) ATTORNEY’S
FEES
FOR
PLAINTIFF.—The
1
court shall award a reasonable attorney’s fee as part
2
of the costs to a prevailing plaintiff in a civil action
3
under this subsection.
4
(3) NO
PREEMPTION.—Nothing in this sub-
5
section preempts, alters, displaces, abridges, or sup-
6
plants any claim or remedy available under any
7
State or Federal law, including common law, that
8
provides a remedy for civil relief.
9
(d) AFO DISCHARGES.—Section 402 of the Federal
10
Water Pollution Control Act (33 U.S.C. 1342) is amended
11
by adding at the end the following:
12
‘‘(t) AFO DISCHARGES.—The Administrator shall re-
13
quire that all persons exercising substantial operational
14
control (as described in section 104(b) of the Farm Sys-
15
tem Reform Act of 2023) over an animal feeding operation
16
(as defined in section 101 of that Act) jointly obtain a
17
permit under this section for a discharge from the animal
18
feeding operation.’’.
19
TITLE
II—AMENDMENTS
TO
20
PACKERS AND STOCKYARDS
21
ACT, 1921
22
SEC. 201. DEFINITIONS.
23
Section 2(a) of the Packers and Stockyards Act,
24
1921 (7 U.S.C. 182(a)), is amended—
25
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