Programs - Contract Agriculture Reform


In the face of record low commodity prices and ever increasing market concentration, many U.S. farmers are turning to contracting for economic security. The RAFI-USA Contract Agriculture Reform program is an effort to insure these contract arrangements between individual farmers and processors are fair and equitable.

Our work includes:

  • Empowering farmers by providing critical information on the long-range impact of contracting in the poultry industry
  • Developing and promoting state and federal reforms to protect the rights of individual contract farmers and farmer-controlled cooperatives
  • Supporting active, farmer-controlled associations that can reduce the isolation and vulnerability of individual contract growers
  • Educating consumers about the implications of market consolidation and vertical integration through collaboration with social justice, church, community -based, environmental, and civic organizations
  • Providing analysis and technical assistance for viable market alternatives.

 

The current RAFI-USA Contract Agriculture Reform Program is an expansion of our 15 years of support for contract poultry farmers trapped in bad contracts. The poultry industry has been fully vertically integrated and dominated by contract production for almost forty years. Poultry growers can document the evolution of contracting in the poultry industry from a mutually beneficial agreement among neighbors to a one-sided, legalized form of debt bondage.

The poultry industry model of corporate concentration, vertical integration and contract production is rapidly spreading to other commodities including pork, tobacco, beef, soybeans, and other crops. Responding to these changes and drawing from the poultry experience, RAFI-USA is providing analysis of the long-term social, legal and economic impacts of the contract agriculture system and possible viable alternatives.

In addition, RAFI-USA is working in collaboration with other national farm and community organizations for reforms to protect the family farmer who turns to contract production.

Learn more about the Campaign for Contract Agriculture Reform and federal contract reform initiatives.


CONTRACT AG REFORM RESOURCES

The 2008 Farm Bill contains first ever Livestock Title
-  The Food, Conservation and Energy Act of 2008 contains the first ever Livestock Title, which has many contract fairness provisions that we have been advocating for.  We fought hard to ensure that the voluntary arbitration provision also remained in the final version of the bill.
Fact Sheet for Growers
Arbitration Fact Sheet
Costs of Arbirtration vs. Court

Competition Sign on Letter – Over 200 organizations signed onto this letter calling for a comprehensive Competition Title that would include contract reform provisions in the next farm bill.  Read the letter (PDF)

NEW publication – The Farmers Guide to Peanut Contracts (PDF, 1.8M). January 2007. This guide is intended for farmers who are considering growing peanuts for the first time and for those who are deciding whether to expand their operations and investment in equipment based on contracts in the United States.

New RAFI-USA publication - Dec. 2006. Issues to Consider Related to Tobacco Contracts (PDF, 2.2M)

ACTION ALERT! - Calls Needed to Protect Farmers' Legal Rights! January 2006. Read the alert (WORD) (PDF).

Articles on recent poultry cases and integrator liability:
Overview on Integrator Liability (PDF)
Tyson v. Sierra Club (PDF)

Overview of 2007 Farm Bill Contract Agriculture Reform Pieces
Summary – CCAR Farm Bill (PDF)
Agricultural Fair Practices (PDF)
Packers & Stockyards Act Reform (PDF)

Links to research and information on agricultural contracts
University of Missouri
Iowa State Attorney General
Farmers Legal Action Group

Overview of Gatlin v. Sanderson Farms, Inc.: Issues on Appeal. December 2005 (PDF).

New guide weighs pros and cons of contract farming. July 28, 2005. Newly revised "Questions to Ask Before Signing a Poultry Contract" helps farmers assess the true risks and benefits associated with contract poultry production. View the press release (WORD) and the guide (PDF).

Farm organizations take action to support farmers' right to go to court. View the press release (WORD) and amicus brief (PDF).

Articles from the Winston-Salem Journal, June 2004, about poultry contracts:

Editorial
Poultry contracts, part 1
Poultry contracts, part 2

View our electronic publication Your Poultry Contract is Cut Off Due to Plant Closing: What Should You Do? 2003
A new educational sheet on questions to ask when your poultry contract is terminated due to a plant closing (PDF).

View our monthly e-Bulletins for more information and news about contract agriculture reform.