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Details of new cattle market bill highlight difference between voluntary, mandatory approach
The author of the original cattle market bill says the newest version should ensure robust price discovery and transparency.
Deb Fischer, a Republican from Nebraska, says mandatory minimums will need to be met in the 5-7 regions that have been established by a USDA rulemaking process. “But I want to be clear that will just be in states and regions that have one of the four packers there. It doesn’t change the LMR reporting regions. That stays the same.”
She says the earlier version of the Cattle Price Discovery and Transparency Act had five regions mandating cash trade levels, but stakeholders said that didn’t encompass all producers and it would have unintended consequences.
She says the bill establishes a maximum penalty for covered packers of $90,000 for mandatory minimum violations. “It’s tweaked which packers are covered. We really listened to people who obviously (have) major concerns with the four major packers.”
Fischer says organizations like the National Cattlemen’s Beef Association have tried a voluntary approach but failed because packers won’t participate. “People are realizing that the only way that we are going to get that market information that we need to be able to make informed decisions so we can have transparency, so we can have accountability – the only way that can happen if it’s going to be mandated.”
National Cattlemen’s Beef Association’s Tanner Beymer tells Brownfield they continue to oppose mandated trade. “The bill does continue to require that cattle producers and packers transact cattle in a very specific way. That just does not align with our policy. We do not support government mandates on cattle marketing methods.”
Fischer says the bill also adjusted the pricing mechanism for fed cattle purchases. “Obviously, through negotiated cash sales, through the negotiated grid, through the stockyards, which mean sale barns. Those sales will be included. And, also trading systems where you have multiple buyers and sellers.”
The bill is also sponsored by Senators Chuck Grassley of Iowa, Jon Tester of Montana and Ron Wyden of Oregon.
U.S. Senator Deb Fischer: