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Farm System Reform Act of 2023

Source: Congress.gov  ·  7,208 words in original text
What This Bill Does
This bill stops new large animal farms from starting or expanding. It requires large farms operating today to shut down by January 1, 2041. The bill also strengthens rules for meat packers and poultry dealers, and requires labels showing where beef, pork, and dairy products come from. ##
Who It Affects
• Owners of large concentrated animal feeding operations (large CAFOs) • Meat packers and poultry dealers • Contract growers who raise livestock or poultry under contracts • Livestock and poultry producers • Retailers selling beef, pork, and dairy products • The U.S. Department of Agriculture (USDA) • Consumers buying meat and dairy products ##
Key Provisions
• Large CAFOs cannot start or expand operations after the bill becomes law, and must stop operating as large CAFOs by January 1, 2041. Violations result in penalties up to $10,000 per violation per day. (Sec. 102) • The government will offer grants to farm owners to pay off debts and help them switch to different farming activities, like raising grass-fed livestock or growing specialty crops. The government must set up this program within 180 days of the bill becoming law. (Sec. 103) • Companies that control how livestock or poultry farms operate become legally responsible for animal waste disposal, pollution from those farms, and harm to nearby residents and the environment. These responsibilities cannot be passed to contract growers. (Sec. 104) • Meat packers must buy at least 50 percent of their livestock from independent farmers on the open market within 7 days of slaughter, ensuring competitive bidding. (Sec. 202A) • Beef, pork, and dairy products sold to consumers must show what country or U.S. state the product came from. Products labeled "Product of U.S.A." must come from animals born, raised, and killed only in the United States. (Sec. 301-302) ##
What Changes
**On animal farms:** No new large CAFOs can be built or expanded. Existing large CAFOs have until January 1, 2041 to shut down. Farm owners can apply for government grants to pay off debts and transition to other farming methods. **On meat companies:** Packers and poultry dealers face new rules. They cannot own or control livestock farms in ways that make independent farmers unable to participate in managing their own operations. They must buy half their livestock from independent farmers through open market bidding. They become responsible for waste disposal and environmental pollution from farms they control. **On contract disputes:** Poultry growers and hog farmers cannot have their contracts terminated just because someone claims they broke a law. Companies must share data used to calculate what they pay farmers. Farmers can sue meat companies and poultry dealers for violations and recover attorney fees. **On store shelves:** Beef, pork, and dairy products must display country-of-origin labels. Products from multiple countries must list all of them. ##
Important Definitions
• **Large CAFO:** A farm holding at least 700 dairy cows, 1,000 cattle, 2,500 large pigs, 10,000 small pigs, 500 horses, 10,000 sheep, 55,000 turkeys, 30,000 chickens with liquid manure systems, 125,000 chickens with other systems, 82,000 laying hens, or 30,000 ducks. • **Animal feeding operation (AFO):** A facility where animals are confined and fed for at least 45 days in any 12-month period, without crops or vegetation growing there. • **Integrator:** A company that contracts with farm owners to raise livestock or poultry under the company's instructions, then sells the animals for slaughter. • **Contract grower:** A farm owner who raises livestock or poultry under a written agreement with a larger company. • **Manure:** Animal waste including feces, urine, bedding, litter, and compost mixed with waste. • **Forward contract:** An agreement to buy livestock for delivery more than 7 days after the deal is made. • **Spot market sale:** A same-day or next-day purchase of livestock at a set price with open competitive bidding. • **Dairy product:** Fluid milk, cheese, yogurt, ice cream, butter, and other dairy items. ##
Effective Date
The bill becomes effective upon enactment, except for certain requirements for packers owning or controlling livestock farms. Those rules take effect either 180 days after enactment (for most livestock) or 18 months after enactment (for pig farmers), as determined by the Secretary of Agriculture. (Sec. 202)
Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.