A division of the U.S. Department of Agriculture had proposed the rules that were scheduled to go into effect Thursday.
The new rules were intended to protect poultry producers from unfair commercial practices by food processing giants like Tyson Foods.
Republican Sen. Pat Roberts praised the decision to block the rules. He says the decision promotes economic prosperity and reduces regulatory burdens in the agricultural community.
But some groups disapprove of the decision. An official with the Organization for Competitive Markets says the block favors large agricultural corporations and hurts farmers and ranchers.
DES MOINES, Iowa (AP) — The U.S. Department of Agriculture has killed a rule designed to protect the legal rights of farmers who raise chickens and hogs for the nation’s largest meat processors.
The rule would have made it easier for farmers to sue companies they contract with over unfair or deceptive practices.
It was rolled out in the final days of Barack Obama’s administration. But the USDA delayed it after President Donald Trump took office. On Tuesday, the agency withdrew it for good.
Farmers who have waited years for the rule are expressing disappointment. Republican Sen. Chuck Grassley, an Iowa farmer, accuses the Trump administration of “pandering to big corporations.”
Poultry and pork industry trade groups say the rule would have reduced competition and driven meat prices higher.