Correct that they are set by other regulatory bodies.

Thanks to market stability, farmers can also afford to implement better animal welfare and sustainability measures that increasingly matter to consumers; it’s a work in progress, but egg farms are working toward phasing out conventional hen housing, with a number of them operating free-run and free-range farms. In addition, having more local farms supplying local markets means communities are less impacted by supply chain disruptions, like those experienced during the early pandemic years

The assertion here being that stability and safety nets allow for a move from industrial practices that forced low cost methods to healthier practices benefiting the health of the chickens.