The Cost of Negotiated Trade and True Price Discovery

May 07, 2021

By Andrew Griffith

There was a question last week about all the different methods that have been proposed to achieve adequate negotiated trade and true price discovery in the finished cattle market. There has been proposed legislation as well as efforts by NCBA that is a voluntary framework, but NCBA’s voluntary framework could lead to them pushing for a policy framework if packers and cattle feeders do not meet minimum thresholds.

For those interested in the specifics, this information can be found from several sources online. However, it is important for interested parties to understand that any type of mandate or policy will increase costs to the industry directly in two ways.

The first way is that it will increase transaction costs between packers and feedlots as they will be forced to negotiate prices each and every week. This does have a cost. The second cost will be in enforcing the mandate and regulations.

There is always a cost associated with the enforcement of mandates, and it could get expensive.

Source : osu.edu

Video: Dicamba Returns for Georgia Farmers: What the New EPA Ruling Means for Cotton Growers

After being unavailable in 2024 due to registration issues, dicamba products are returning for Georgia farmers this growing season — but under strict new conditions.

In this report from Tifton, Extension Weed Specialist Stanley Culpepper explains the updated EPA ruling, including new application limits, mandatory training requirements, and the need for a restricted use pesticide license. Among the key changes: a cap of two ½-pound applications per year and the required use of an approved volatility reduction agent with every application.

For Georgia cotton producers, the ruling is significant. According to Taylor Sills with the Georgia Cotton Commission, the vast majority of cotton planted in the state carries the dicamba-tolerant trait — meaning farmers had been paying for technology they couldn’t use.

While environmental groups have expressed concerns over spray drift, Georgia growers have reduced off-target pesticide movement by more than 91% over the past decade. Still, this two-year registration period will come with increased scrutiny, making stewardship and compliance more important than ever.