Misguided Ruling Could Upend the Lives of Many Hog Farmers, Sorenson Says

A recent federal district court ruling, if left unchallenged, will result in a 2.5% loss in pork packing plant capacity nationwide and more than $80 million in reduced income for small U.S. hog farmers, according to Dermot Hayes, an Iowa State University professor of economics. 

The National Pork Producers Council (NPPC) urges USDA to intervene before the ruling takes effect at the end of June. Not only will the ruling dramatically reduce hog farmer market power, particularly smaller producers located near impacted plants, but it will also undermine pork industry competition, NPPC said in a release on May 24.

“The U.S. pork production system, the most advanced in the world, is characterized by robust competition, innovation and efficiency. With the stroke of a judge’s pen, the lives of many hog farmers will be upended if this misguided ruling takes effect,” NPPC President Jen Sorenson, communications director for Iowa Select Farms in West Des Moines, Iowa, said in a release. “The lost revenue projected by Dr. Hayes is not theoretical; it is based on breeding decisions made several month ago and pigs already in the production cycle that will go to market in a few months.”

The federal court’s decision struck down a provision of USDA’s New Swine Inspection System (NSIS) adopted industry-wide in 2019 that allows for faster harvest facility line speeds. NSIS was initiated during the Clinton administration and has been evaluated at five pilot plants over 20 years. In short, NSIS modernized an inspection system that had remained unchanged for more than 50 years. 

However, NPPC says the court’s ruling will have the opposite effect sought by those seeking to expand the number of meat packing plant facilities. Lawmakers have recently called for increasing the number of pork processing facilities nationwide by bringing smaller state plants up to federal inspection standards. These facilities represent less than 1% of total harvest capacity. 

“A significant reduction in harvest capacity will have a very big impact on prices,” said Dwight Mogler, a pork producer in Alvord, Iowa. “There is no limit to how low they can go.”

According to Hayes, the court decision will affect all hog farmers, but small hog farmers will disproportionately bear the brunt, especially those near affected processing plants. 

Michigan pork producer Ed Reed sends 80% of his hogs to an affected plant 15 miles away from his farm. The next closest processing plant is 2.5 hours away. Those added transportation costs may be too much for producers to bear, he added.

“I'm a small farm and we're trying to capture as much value as we can,” Reed said. “If we were to slow the plant down…we’re going to have capacity issues.” 

Minnesota hog farmer Dani Schwerin agrees. 

“If we can't pay our people because the funds aren't coming in, we have to let them go. In a small community, where we’re a large employer, removing the jobs from our community is detrimental to these families and the vitality of the community as a whole,” Schwerin said.

NPPC urges USDA to appeal the ruling, seek a stay while the appeal is considered and request the agency pursue a new, fast-tracked rulemaking that better reflects the modern processing plant technologies and practices and allows for higher line speeds. 

To learn more about this issue and hear more hog farmers describe the impact the court ruling would have on their operation, visit NPPC’s website.

More from Farm Journal's PORK:

Judge Denies Seaboard's Motion to Delay Line Speed Limits

U.S. Pork Processor Seeks to Delay Court Decision Limiting Slaughter Speeds

Federal Court Removes Swine Slaughter Line Speed Provision

Union Representing Pork Processing Plant Workers Sues USDA

Industry Groups File Brief in Support of New Swine Inspection System