The relationship between poultry processors and chicken farmers is largely governed by federal legislation. For example, farmers are entitled by law to: Meet Bill and Jeff. Bill is a truck driver for Tyson Foods and Jeff is a poultry farmer. You`ve been friends for 50 years. They grew up together and spent their entire lives in the same community. Jeff is grateful for the supervision, technology and progress of American agriculture. As Jeff says, farmers are important and he built something very special. If you want to learn more about the life of an independent contract poultry farmer, watch this video: The chicken-farmer relationship is widely regulated by federal law. Livestock and poultry sourcing and marketing practices are regulated by the U.S. Department of Agriculture`s Grain Inspection, Packers and Stick Administration (GIPSA), which administers and enforces the Packers and Stockyards Act to protect farmers, ranchers and consumers. The performance-based compensation program we offer farmers is not just for Tyson Foods.
It is used by many poultry processors in the United States to determine compensation for farmers. The income from raising hens varies and depends on a number of factors. For some farmers, it is a single source of income. For many, this is an additional income to another job or the breeding of crops or other livestock. In fact, a 2014 U.S. DEPARTMENT STUDY found, that the average income of contract poultry farmers exceeds other farm households. We provide poultry producers with written contracts detailing how payments are calculated. Poultry farmers are essentially paid for the way they care for chickens and for the weight they gain while on the farm. We use a performance incentive system that rewards poultry producers who effectively transform the food we offer into weight gain in the birds that raise them. The payment formula includes factors such as the number of birds, the amount of feed used, the performance of their herd relative to those perceived by other contract farmers, and the weight of the birds delivered to the processing plant. More consumers today want to know the story behind our food. Starting with the farm and as a culinary creation on our tables, there is a journey to maintain a robust and sustainable food system.
To delve deeper into history, we met with poultry farmer Stoni Jo, whose family farm contracts with Tyson Foods, to find out how her role as a poultry farmer contributes to the food system – and how she plays a fundamental role in preparing good food for family tables. The practice of raising chickens under a contract for poultry processors has been in place since the 1930s and is the industry standard.