MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Agriculture

By: Representatives Shows, Ellzey, Eaton

AN ACT TO CREATE THE "MISSISSIPPI POULTRY PRODUCTION CONTRACT FAIR PRACTICES ACT"; TO PROVIDE DEFINITIONS; TO PROVIDE PROHIBITIONS AND REQUIREMENTS FOR PROCESSORS AND GROWERS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The Legislature finds that the production of poultry constitutes an important and significant portion of the state's economy and that it is beneficial to the citizens of this state to protect the vitality of this enterprise.

SECTION 2. For the purposes of this section, the following words and phrases shall have the meanings ascribed herein:

(a) "Producer" means any person engaged in the business of raising or caring for live poultry under a poultry-growing arrangement, whether the poultry is owned by such person or by another.

(b) "Poultry" means any domesticated bird, whether live or dead, and includes laying hens, broiler breeding hens, broiler breeder pullets, commercial egg hens, commercial egg pullets, broilers, roasters, turkey hens, turkey toms and ducks.

(c) "Poultry products" means eggs, poultry carcasses, poultry by-products or any part thereof.

(d) "Processor" means any person engaged in the business of obtaining live poultry or poultry products by purchase under a poultry-growing arrangement for the purpose of slaughter by such person or by another, or any person engaged in the business of obtaining poultry eggs or the care of live poultry under a poultry-growing arrangement.

(e) "Poultry-growing arrangement" means any grow-out contract, marketing agreement or other arrangement under which a poultry producer raises or cares for live poultry or poultry products in accord with another's instructions.

SECTION 3. (1) No processor or grower shall engage in any unfair, unjustly discriminatory or deceptive act or practice as defined in this act in connection with any poultry or poultry-growing contract.

(2) Unfair, unjustly discriminatory or deceptive acts and practices include, but are not limited to, the following, each of which is declared to be a violation of this act:

(a) A processor's using coercion, intimidation, the threat of retaliation or the threat of contract termination or cancellation to impose, demand, compel or dictate the terms, payment or manner of payment or the signing of a contract by a grower;

(b) A processor's canceling a grower's contract based solely upon his ranking as it compares to the other growers;

(c) Any act or omission prohibited by the Packers and Stockyards Act, 7 USCS Section 181 et seq., or the rules and regulations promulgated thereunder;

(d) A grower's failing to maintain buildings, equipment, ingress or egress in a manner that is acceptable within industry standards;

(e) A grower's failing to diligently follow the written day-to-day poultry management practices of the processor.

SECTION 4. All processors and growers shall engage in the following best management practices:

(a) All live birds shall be weighed by a bonded weighmaster on certified scales. Provisions shall be made for alternate certified scales in the event the primary scales are "red tagged" by the State Weights and Measures Department. Growers, their family or employees, with proper identification, shall be allowed to watch, without prior notice, live birds being weighed.

(b) All feed shall be weighed under the same arrangement as provided in paragraph (a) of this section, including the observation of the weighing.

(c) Processors shall provide growers all documentation that impacts a producer's settlement check, in a legible manner, including, but not limited to:

(i) Grower's copy of United States Department of Agriculture form 9061-2.

(ii) A loading ticket, at the time of catching, that gives truck number, trailer number, number of birds per coop and number of full coops.

(iii) Copy of weigh tickets for live birds.

(iv) A copy of medication charges, either at the time of delivery or with settlement check.

(v) A sample computation of the payment formula, using the growers actual figures. Growers shall produce and provide several sample computation formulas.

(d) Processors shall use all available means to insure proper handling of birds from farm to plant. Damage by catching crew of grower's equipment or facilities shall be reimbursed by his processor.

(e) Processors shall not require a grower to purchase or construct additional buildings, equipment or facilities, or additions, modifications or improvements thereto, after the parties have entered into a contract unless fair and equitable premiums are paid by the processor as compensation. A processor shall test, upon request of a grower, new equipment that a grower wishes to be added to the processor's approved equipment list.

(f) Growers and their immediate family who are employed by the companies in live production shall not be ranked with other contract growers.

(g) Growers may join or assist any organization or association of their choice. A grower's membership in any organization shall not affect his settlement in any way.

(h) Where requested and available, the processor shall furnish the grower a copy of veterinary reports within forty-eight (48) hours of the time the report is received by the processor. The processor shall share with the grower all known information and causes dealing with problematic situations that affect farm management, including parent stock and age.

(i) Processors shall provide growers with information on feed delivery procedures. When requested, feed delivery trucks shall be sealed at the plant with corresponding, numbered seals that shall be listed on the feed delivery ticket. The seal shall not be broken unless the grower is not available at the time of actual delivery. The grower may request that he be notified by telephone before the truck leaves the feed mill.

(j) Processors shall provide producers applicable management guidelines for broiler, pullet or breeder management.

SECTION 5. All contracts shall be entered into with a sense of fairness, and there is an implied promise of good faith as defined in Section 75-1-201(19) by all parties in any poultry or poultry products contract between a processor and a grower.

SECTION 6. This act shall take effect and be in force from and after its passage.