Dustin Messner, Research Fellow
Elizabeth Rumley, Senior Staff Attorney
Through recent federal proposals, some members of Congress have expressed interest in changing some requirements surrounding the slaughter and processing of livestock. This article will address provisions of several of those proposed laws, specifically the “LOCAL Foods Act” and the various farm bill proposals.
The processing of livestock—which includes animals such as cattle, sheep, swine, and goats—is governed on a national level by the Federal Meat Inspection Act (“FMIA”), and implemented through USDA regulations. Similarly, the processing of poultry, including chickens, turkeys, ducks, geese, ratites and squab is governed by the Poultry Products Inspection Act (“PPIA”) and implementing regulations. In those laws, USDA-FSIS is given primary authority for oversight of meat products that will be offered for sale. One of the main components of that oversight is the requirement that the slaughter of livestock and processing of meat products be subject to continuous inspection by government inspectors. Additionally, there are various labeling, sanitation and building requirements.
That authority, however, may be designated to a state agency in those states that chose to apply for such authority, as long as the state requirements are “at least equal to” those enforced by USDA-FSIS. State inspection programs operate under a cooperative agreement with FSIS, and facilities in states with state inspection can choose between FSIS or state inspection.
While FSIS regulates livestock slaughter and meat processing, certain categories of slaughter and processing are exempt from inspection requirements under the FMIA. Similar exemptions are in place for the PPIA. For example, FMIA exempts livestock slaughtered and processed for personal use. Currently, the personal use exemption applies to “the slaughtering by any person of animals of his own raising” and the associated processing “of such animals exclusively for use by him and members of his household and his nonpaying guests and employees.” 21 U.S.C. § 623(a).
The slaughter and processing of livestock and poultry by a non-owner for the exclusive use of the owner, their household, guests or their employees, commonly called “custom exempt,” is another exemption to the typical inspection requirements. This custom slaughter exemption allows owners to deliver their livestock to a qualified establishment for slaughter and processing.
The first difference between the two exemptions is who butchers the animal. The owner butchers the animal under the personal use exemption, but an employee or operator of a custom slaughter establishment butchers the animal under the custom slaughter exemption. The custom slaughter exemption is also generally more restrictive than the personal use exemption. Under the custom slaughter exemption, the establishment must be operated in a sanitary manner, there are additional record-keeping requirements, and the meat or carcass must be marked “Not for Sale” and separated from other meat products.
USDA Guidelines from 2018 specify that an owner may slaughter and process any number of livestock for their personal use and that more than one person can own an animal under the exemption. They do not, however, specify exactly how many owners are permitted for a single animal. The guidelines for custom exempt are similar—a single owner can slaughter an unlimited number of animals under the exemption and more than one person can own an animal. There is no specification on how many people can be considered “owners” of a single animal.
LOCAL Foods Act of 2024
A recent legislative proposal could expand the scope of the FMIA’s personal use exemption. Democratic Senators recently introduced Senate Bill 5106 or the LOCAL Foods Act of 2024 (“LOCAL Act”). If passed, it would alter the FMIA in two main ways. First, the LOCAL Act would replace the phrase “animals of his own raising” with “an owner of the animals in whole or in part.” Second, the LOCAL Act would explicitly allow a consumer to designate an agent to assist in slaughtering and processing the meat. The LOCAL Act only amends the inspection provisions for livestock, and it does not affect poultry processing and inspection, which is governed by the Poultry Products Inspection Act.
By allowing an owner “in whole or in part” to qualify for the exemption, the Act would change the FMIA to specify that a person need not own the whole animal and that there may be multiple owners of the animal. As discussed above, this is already permitted under FSIS guidelines. The guidelines, however, have not gone through the full rulemaking process, and are susceptible to amendment by the agency at any time. Codifying it through Congress would formalize the requirement, making it more difficult to change.
Next, by allowing an owner to designate an agent to assist in slaughtering and processing the meat, the LOCAL Act likely expands the scope of the personal use exemption. Typically, an owner would designate an agent under the custom slaughter exemption, not the personal use exemption. In such a scenario, the owner would likely deliver the animal to the custom operator for processing, and the custom operator would conform with specific sanitation and recordkeeping requirements. The LOCAL Act would allow an owner to designate an agent to assist them in the processing of the animal under the personal use exemption, provided that the owner maintains custody and specific identification of the meat products.
As a simple example, the LOCAL Act would allow an owner to have their neighbor assist them in the processing of the animal. However, it would also allow an owner to designate the local butcher to assist them in the slaughter of the animal at the owner’s household under the personal use exemption—as opposed to the custom slaughter exception. Therefore, the LOCAL Act might expand the scope of the personal use exemption, with its minimal sanitation and recordkeeping requirements, into products that were previously covered by the custom slaughter exemption.
Proponents of the LOCAL Act say that it would codify existing USDA guidance, increase farm viability, reduce animal transport costs, relieve pressure on slaughterhouses, and improve animal welfare. The LOCAL Act is endorsed by several organizations including the National Family Farm Coalition and the Farm Action Fund. It was referred to the Senate Committee on Agriculture, Nutrition, and Forestry on September 19, 2024. You can monitor its development in Congress here.
Farm Bill Proposals
The LOCAL Act is not the only pending legislation that would affect the slaughter and processing of livestock. Both the House and the Senate have introduced farm bill proposals affecting stakeholders covered by the FMIA.
The 2024 House Farm Bill proposal, (H.R. 8467), would allow “custom slaughter facilities and owners of livestock harvested at such facilities, to sell meat or poultry products directly to in-state consumers.” Cong. Rsch. Serv., The 2024 Farm Bill: H.R. 8467 Compared with Current Law at 126, R48167 (2024). It would set out a pilot program, conducted in collaboration with state governments, allowing custom slaughter products to be sold to the public. This proposal is pending in the House of Representatives, and its status may be monitored here.
Senate Democrats also recently introduced a 2024 Farm Bill proposal, the Rural Prosperity and Food Security Act of 2024. It would not alter the codified exemptions under the FMIA but would make custom slaughter establishments eligible for a new grant program. The proposed grants would benefit entities that engage in activities that support health and safety of meat and poultry consumers, workers, and suppliers, increase processing capacity, “and otherwise support the resilience of the small meat and poultry processing sector.” You can monitory the status of the Senate Democrats 2024 Farm Bill Proposal here.
Senate Republicans, while not yet introducing a formal farm bill proposal, discuss several proposals affecting livestock slaughter and processing in their farm bill framework. Objectives relevant to the livestock processing sector include reducing states’ ability to regulate interstate commerce, expanding the Cooperative Interstate Shipment Program in some way, and allowing for the online interstate sale of state inspected meat and poultry products. The framework may provide some insight into what the 119th Congress will prioritize when it convenes next year.