Arkansas Livestock Commission partners with USDA for poultry grading services

Senate Bill 550, introduced in Arkansas on March 20, 2025, aims to enhance the state's poultry and egg grading and inspection services by establishing a cooperative agreement with the United States Department of Agriculture (USDA). The bill empowers the Arkansas Livestock and Poultry Commission to bill poultry and egg processors for grading and inspection services, with a portion of the collected fees remitted to the USDA.

Key provisions of SB550 include the creation of a dedicated "Poultry and Egg Grading Fund," where all revenues from these services will be deposited. This fund is intended to cover salaries, operational costs, and administrative expenses related to the grading program. Additionally, the bill allows for the payment of overtime compensation to employees involved in these inspections, ensuring that the workforce is adequately compensated for their efforts.

The bill addresses critical issues in Arkansas's poultry industry, which is a significant sector of the state's economy. By streamlining the funding and operational structure for grading and inspection services, SB550 seeks to improve efficiency and maintain high standards in poultry and egg quality.

Debates surrounding the bill have focused on its potential economic implications, particularly for local poultry processors who may face increased costs due to the new billing structure. Supporters argue that the bill will ultimately benefit the industry by ensuring compliance with federal standards and enhancing product quality. However, some opposition has emerged from industry stakeholders concerned about the financial burden on smaller processors.

The significance of SB550 lies in its potential to strengthen Arkansas's poultry sector, which is vital for both state employment and agricultural output. Experts suggest that if implemented effectively, the bill could lead to improved market competitiveness for Arkansas poultry products. As the bill progresses through the legislative process, its impact on the state's agricultural landscape will be closely monitored by both supporters and critics alike.