New livestock and poultry marketing rules proposed by the USDA Grain Inspection, Packers and Stockyards Administration will be published today in the Federal Register. The proposal is a result of language in the 2008 Farm Bill requiring USDA to conduct rulemaking that “improves fairness in the marketing of livestock and poultry.” According to a USDA news release, protections included in the rule would, among other steps, define undue preferences or advantages.
NCBA President Steve Foglesong said while the organization still is analyzing the details, there are serious concerns with any efforts to increase government intrusion in the marketplace. He said ranchers and feeders support free-market principles and deserve the right to enter into private negotiations between willing buyers and sellers.
“NCBA will fight to protect the use of contract and alternative marketing arrangements in the cattle industry to satisfy the demands of our consumers,” said Foglesong.
Multiple studies have shown current federal regulations ensure the marketplace is free from anti-trust, collusion, price-fixing and other illegal activities that could damage the viability of the market and interfere with market signals. NCBA member policy has long supported full enforcement of the Packers & Stockyards Act.
NCBA will submit detailed comments on the proposed rule. Foglesong encouraged USDA to carefully consider ranchers’ input throughout the rulemaking process so the final rule supports fair, open and transparent commerce “without undue government intrusion that would hinder producers’ ability to market cattle when, how and where they want to.”
Source : Kansas Livestock Association