The National Chicken Council filed formal comments with the USDA Agricultural Marketing Service backing the agency's proposed 18-month delay to the Poultry Grower Payment Systems and Capital Improvement Systems rule. 18-month delay proposed was the council's central demand as AMS weighs the rule's impacts, which is Effective July 1, 2026 as written. The council said a pause would give producers and integrators certainty while regulators reassess costs and legal issues.
AMS suggested the postponement in March after reviewing the rule's likely financial effects on the sector and shoppers. Agency analysts flagged millions in compliance costs tied to new reporting, payment and capital requirements, and the council echoed that concern in its comments. NCC argued those expenses would fall on integrators, growers and ultimately consumers through higher prices or reduced competition.
NCC said the rule would effectively end performance-based bonuses by standardizing payments across growers, removing pay differentials tied to productivity, animal care or capital investment. The council warned that replacing tiers and bonus structures with uniform pay would push experienced growers out of production and erode operational efficiency in rural markets. NCC repeated legal and policy criticisms it has raised throughout the rulemaking process and asked AMS to use the delay to fully rescind the regulation.
Industry response and risks
In its filing, NCC urged AMS to finalize the delay quickly so integrators could pause costly compliance preparations and avoid sunk implementation expenses. The council stressed that losing bonus structures would make it harder for high-performing farmers to recoup investments in facilities and husbandry practices, weakening incentives that currently support lower costs and productivity. NCC president Harrison Kircher said the regulation threatened an industry model that helps keep chicken affordable for American consumers.
The council also highlighted a point AMS and the administration have acknowledged: regulators have been unable to quantify clear net benefits for the sector under the new rule. Officials noted that any gains for some growers could come at the expense of higher-performing operations, a trade-off NCC underscored in its comments. That recognition underpinned the council's call for an extended review period rather than immediate enforcement.
Next steps for AMS
NCC asked AMS not only to issue the delay but to use the additional time to rescind the rule entirely, citing both economic and legal concerns. The group filed a detailed public comment outlining those deficiencies and urged a prompt agency decision to avoid costly preparations by integrators and growers. AMS must now consider whether to finalize the 18-month delay and whether the rule should be revised or withdrawn before the July 1, 2026 effective date.
Photo - Bob Nichols/U.S. Department of Agriculture
Photo - eu-images.contentstack.com
