Industry officials said the contract system has worked for six decades because it benefits businesses and farmers.
Perdue Farms spokeswoman Diana Souder said the company, which will donate $ 14.75 million, values the relationship it has with its farmers and that Purdue pays farmers based on their performance.
“As a vital part of our business, we value the excellent trust-based relationships we have with our farmers and remain committed to providing them with fair and competitive contracts that benefit them and, therefore, our animals, our business. , our customers and our consumers. “Solder said
Tyson, who agreed to pay $ 21 million in the settlement, did not immediately answer questions about the matter on Thursday.
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This lawsuit is an example of a case that may be easier to bring for farmers in the future, as the Biden administration has said it plans to issue new rules that encourage competition in the agricultural sector and protect farmers. against the country’s largest meat processors.
The new rules planned by the Biden administration would make it easier for farmers to sue companies they contract with for unfair, discriminatory or deceptive practices.
The settlement will make it easier for farmers to file complaints under the Packers and Stockyards Act and is similar to the one the Trump administration killed four years ago. This rule was first proposed in 2010.