HR1648-119

What This Bill Does

The A-PLUS Act targets a narrow Packers and Stockyards conflict-of-interest rule. It requires USDA to revise 9 C.F.R. 201.67 so a livestock auction market agency can hold an ownership interest in, finance, or participate in the management or operation of a small packer. The eligibility thresholds are specific: cattle and sheep packers must have cumulative slaughter capacity below 2,000 animals per day or 700,000 per year, and hog packers below 10,000 animals per day or 3 million per year. Covered auction agencies must disclose the ownership, financing, or management relationship to sellers of livestock, and USDA keeps its general Packers and Stockyards authority to protect producers, competition, market integrity, and conflicts of interest.

Who Benefits and How

Livestock auction agencies benefit because the bill lets them invest in or help operate qualifying small meatpacking businesses without violating the conflict rule. Small meatpacking contractors benefit from access to capital, financing, and operating help from auction-market owners. Rural livestock farmers benefit if more local or regional packer capacity gives them additional selling options outside the largest meatpacking firms. USDA Agricultural Marketing Service staff benefit from statutory direction on the exact regulatory clarification Congress wants.

Who Bears the Burden and How

USDA Agricultural Marketing Service staff must revise the regulation within one year and police the disclosure requirement. Livestock sellers must evaluate disclosed auction-packer relationships when deciding where to sell animals. Large meatpacking companies may face additional regional competition from small packers backed by auction-market capital. Competition advocates bear monitoring burdens because the bill loosens one relationship restriction while relying on disclosure and USDA enforcement.

Key Provisions

• Requires USDA to revise Packers and Stockyards regulations within one year.
• Authorizes livestock auction agencies to own, finance, or help manage qualifying small packers.
• Limits eligibility by slaughter-capacity thresholds for cattle, sheep, and hog packers.
• Requires auction agencies to disclose ownership, financing, or management relationships to livestock sellers.
• Protects USDA authority to enforce producer, competition, market-integrity, and conflict-of-interest rules.