Federal law has prohibited state-inspected meat and poultry plants from shipping their products across state lines, a ban that many states and small plants have long sought to overturn. Both the House and Senate versions of the omnibus farm bill ( H.R. 2419 ) included amendments to the Federal Meat Inspection Act (FMIA) and the Poultry Products Inspection Act (PPIA) that would permit interstate shipment of these products if USDA approves and certain requirements are met. The conference farm bill, cleared in May 2008, generally opted for the Senate approach, viewed by many on both sides of the issue as an acceptable compromise. Proponents of ending the current ban have long argued that limiting state-inspected products to intrastate commerce is unfair. Many state agencies and state-inspected plants have argued that their programs by law already must be, and are, "at least equal" to the federal system. While state-inspected plants cannot ship interstate, foreign plants operating under USDA-approved foreign programs, which are to be "equivalent" to the U.S. program, can export meat and poultry products into and sell them anywhere in the United States. Advocates for change have contended that that they should not be treated less fairly than the foreign plants, and that foreign programs are not as closely scrutinized as state programs. Opponents of allowing state-inspected products in interstate commerce have argued that state programs are not required to have, and do not have, the same level of safety oversight as the federal, or even the foreign, plants. For example, foreign meat and poultry products are subject to U.S. import reinspection at ports of entry, and again, when most imported meat is further processed in U.S.-inspected processing plants. Opponents also contended that neither the USDA Inspector General (OIG) in a 2006 report nor a relevant 2002 federal appeals court ruling would agree, without qualification, that state-inspected meat and poultry were necessarily as safe as federally inspected products. Current Federal-State Cooperative Inspection Program

Approximately 2,100 meat and poultry establishments in 27 states are subject to state-conducted rather than federal inspection programs. Unlike the provisions in the House bill, the conference-adopted Senate language would not replace Title III (federal-state cooperation) in the current FMIA. Restrictions on Size of State-Inspected Plants

The conference (and Senate ) bill would limit eligible establishments to those with 25 or fewer employees. Selected Policy Issues

Under the new farm bill, for the first time in 40 years, meat and poultry that is not federally inspected could be shipped across state lines. Such advocates continue to assert that state standards are not as strong as federal standards, regardless of the "equal to" determination. If the bill becomes law, stakeholders will turn their attention to USDA, which will be required to implement the new provisions.
Federal law has prohibited state-inspected meat and poultry plants from shipping their products across state lines. The final conference version of H.R. 2419, the omnibus farm bill, amends the Federal Meat Inspection Act and the Poultry Products Inspection Act to permit such interstate shipment under certain conditions.
Limiting state-inspected products to intrastate commerce is unfair, many state agencies and state-inspected plants have long argued, because the 27 currently state-operated programs by law already must be, and are, "at least equal" to the federal system. Meanwhile, foreign plants operating under U.S. Department of Agriculture (USDA)-approved foreign programs, which are to be "equivalent" to the U.S. program, can export meat and poultry products into and sell them anywhere in the United States. Advocates for change have contended that they should not be treated less fairly than the foreign plants which, they say, are not as closely scrutinized as state plants.
Opponents have argued that state programs are not required to have, and do not have, the same level of safety oversight as the federal, or even the foreign, plants. For example, foreign meat and poultry products are subject to U.S. import reinspection at ports of entry, and again, when most imported meat is further processed in U.S.-inspected processing plants. Opponents also have contended that neither the USDA Office of Inspector General in a 2006 report nor a relevant 2002 federal appeals court ruling would agree, without qualification, that state-inspected meat and poultry were necessarily as safe as federally inspected products.
The Senate-passed farm bill—the approach ultimately adopted by conferees—supplements the current federal-state cooperative inspection program with a provision whereby state-inspected plants with 25 or fewer employees could opt into a new program that subjects them to federally directed but state-operated inspection, thus allowing them to ship interstate. The Senate version reportedly was developed as a compromise by those on both sides of the issue.
The House-passed farm bill would have replaced (rather than supplemented) the current federal-state cooperative inspection programs with a new program to enable meat and poultry that is not federally inspected to be shipped across state lines, so long as the state programs adopted standards identical to those of USDA along with any additional changes USDA required. The House bill also would have enabled many plants currently under federal inspection to apply for state inspection and continue to ship interstate. Opponents of this change feared that many would seek to opt out of the federal system if they believed that could receive more lenient oversight by the states—an assertion that state proponents dismissed.
If the conference farm bill becomes law, as many anticipate, stakeholders will next turn their attention to USDA, where implementation details will be determined through the rulemaking process.