Biden plans steps to help farmers deal with meat processors, tractor makers

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WASHINGTON — President Joe Biden plans an govt order that seeks to present U.S. farmers extra leverage in coping with massive processors who purchase their livestock and with producers whose software program makes it tough for customers to restore tractors, a supply briefed on the matter advised Reuters Tuesday.

Biden’s sweeping competitors order, anticipated to be launched within the coming days, may also tackle different points throughout the financial system. Reuters beforehand reported it’s going to direct new guidelines on delayed airline baggage. It should additionally tackle areas as extensive ranging as cellphone competitors and Pentagon contracts, the supply advised Reuters.

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The order would encourage the Federal Commerce Fee to restrict the flexibility of farm tools producers to limit tractor house owners from utilizing unbiased restore outlets or repairing their very own tools, the supply mentioned.

The FTC wrote a report for Congress in Could that mentioned “Proper to Restore,” which addresses the problem of limits that producers placed on who can restore objects starting from cellphones to house home equipment to automobiles. These limits may additionally increase the value of these repairs.

The supply famous the scope of any “Proper to Restore” guidelines could be set by the FTC.

Biden’s order may assist spur broader FTC guidelines setting restrictions on the skills of further industries to hamper customers from repairing merchandise.

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Some tractor producers like Deere & Co, AGCO Corp and CNHI use proprietary restore instruments and software program to stop third events from performing some repairs. Shares of the businesses fell on information of Biden’s plans, first reported by Reuters Monday.

John Deere mentioned in a press release it “doesn’t help the correct to switch embedded software program attributable to dangers related to the secure operation of the tools, emissions compliance and engine efficiency.” It added that “lower than 2 p.c of all repairs require a software program replace, so the vast majority of repairs farmers must make, will be made simply.”

The FTC didn’t instantly remark.

The supply mentioned Biden and USDA “consider farmers ought to have the correct to restore their very own tools how they like.”

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Individually, Biden plans to direct the U.S. Agriculture Division (USDA) to write down guidelines to spice up competitors in agricultural industries, together with one beneath the Packers and Stockyards Act making it simpler for farmers to deliver claims, the supply mentioned. There may also be anti-retaliation protections for farmers who increase issues about unhealthy practices.

Biden may also direct USDA to problem new guidelines defining when meat can bear “Product of USA” labels. Beneath present labeling guidelines, meat will be labeled “Product of USA” if it processed in the US, even when the livestock is raised abroad after which processed into cuts of meat at a U.S. facility.

Meatpacking has come beneath elevated scrutiny after slaughterhouses closed quickly through the begin of the COVID-19 pandemic final yr, boosting costs for meat bought by processors like JBS USA and Tyson Meals Inc whereas decreasing costs for farmers’ livestock.

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USDA Secretary Tom Vilsack has mentioned he desires to make agricultural markets extra truthful and resilient after the pandemic highlighted how focus within the sector can damage farmers.

4 firms slaughter about 85% of U.S. grain-fattened cattle which can be made into steaks, beef roasts and different cuts of meat for customers

The USDA mentioned in June it might begin engaged on three guidelines to strengthen enforcement of the Packers & Stockyards Act, handed 100 years in the past to guard farmers and ranchers from unfair commerce practices. (Reporting by David Shepardson and Diane Bartz; further reporting by Tom Polansek and Rajesh Kumar Singh Enhancing by Chizu Nomiyama and David Gregorio)