MHancister Farming, Saturday, December 19, 1998
National Farmers Organization Supports
USDA Plan To Require Livestock Price Reporting
AMES, lowa National
Earner’s Organization recently
commented on a new USDA pro
posal that has the potential to
raise livestock producer pay
prices. This comes as good news
to farmers and ranchers who are
coping with the worst prices in
decades.
The new rule, which would
require all livestock purchase
prices to be reported, was first
proposed in September. USDA
invited public testimony on the
subject to assess the need for
regulatory action.
“Our organization believes all
livestock sale prices should be
reported - there shouldn’t be
discrimination or selective price
reporting,” said Gene Paul,
National Farmers president.
“It’s one of the steps that need to
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be taken for markets to be open,
fair and competitive, so produc
ers have reliable, accurate infor
mation to make decisions about
how they market their hogs and
cattle.
“Part of the problem in
today’s depressed livestock
prices could be attributed to the
price reporting issue,” Paul said.
“Mandatory price reporting
would have no impact on quality
and has the potential to raise
the prices paid to producers.”
The Packers and Stockyards
Administration received com
plaints from producers about the
pricing practice as early as 1991.
Just this year, USDA expressed
concern about the fact that some
livestock transactions are condi
tioned on an agreement that the
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transaction price not be reported
to public or private reporting
services.
“Price reporting is only the
first step, however,” Paul said.
“It has always been our position
that simply requiring livestock
sales reporting without address
ing the issue of captive supply
won’t totally solve the problem.”
A captive supply of cattle the
packer in some way owns or is
able, through contracts, to dic
tate the formula that prices
those cattle.
Other recommendations
National Farmers made fit with
the USDA’s Advisory Committee
on Agricultural Concentration
about the collection and report
ing of market information.
“For some time now, National
Farmers has supported a peti
tion filed by the Western
Organization Resource Council
and 1,500 other individuals and
organizations. That petition,
given to USDA, pushes for the
department to eliminate captive
cattle supplies in the industry. It
is our position that this would
compliment the required live
stock price reporting,” Paul said.
The public comment period
concerning the proposed action
ended Dec. 9.
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