The open market for livestock producers and buyers is a dance that fewer have been taking part in as contracts and integration have taken much of the volatility out of the marketplace.
Bipartisan Group of Senators To Introduce Cattle Price Discovery and Transparency Act
Share
The open market for livestock producers and buyers is a dance that fewer have been taking part in as contracts and integration have taken much of the volatility out of the marketplace.
That didn’t change much in 2020. In 2021, a group of lawmakers joined forces to introduce another attempt at leveling the playing field at the packing house door.
Josh Buetter reports.
Transcript
This week, a bipartisan group of four U.S. Senators announced a compromise on steps to improve cattle markets by combining parts of previous bills into a new forthcoming Cattle Price Discovery and Transparency Act.
The move comes on the heels of pandemic-driven meatpacking supply chain labor issues which reverberated down to livestock producers.
Sen. Chuck Grassley/R – Iowa: “How do you justify making such low bids when you're turning such a significant profit?”
Senator Chuck Grassley of Iowa, a proponent of the bill, has accused the nation’s four largest meatpacking corporations of operating in the shadows.
Grassley has instigated several recent hearings to highlight the plight of declining cash markets for independent cattle producers, who have wanted to leverage volatility into robust price discovery, while meatpacker-driven contractual agreements grow – the likes of which dominate other sectors like hog and poultry production.
But the bulk of such formula pricing is based on previously negotiated cash prices.
The new proposed legislation takes a regional approach, by establishing mandatory minimum thresholds of negotiated cash and grid trades based on each region’s 18-month average trade and requires USDA to create and maintain a public catalog of marketing contracts between producers and processors while maintaining confidentiality.
The American Farm Bureau and The National Farmers Union are among a number of state and national organizations which have thrown their support behind the measure.
For Market to Market, I’m Josh Buettner.
Watch More
USDA Secretary Brooke Rollins provided updates on the New World screwworm situation in a series of meetings with lawmakers and in press calls this week.
A North Dakota farmer was one of 100 producers from 18 states to meet with the head of the FTC to voice concerns on several issues involving the fertilizer industry.
This week, the Iowa State Fairgrounds hosted one world agriculture event while another took place looking for better relations between three major trading partners. The reauthorization of the United States-Mexico-Canada trade agreement, commonly known as USMCA, was the topic in Des Moines, Iowa.
Market Plus with Matt Bennett covers managed money exiting commodities and what could drive the next rally.
China's absence in the markets is noticeable as covered in our Market Analysis with Matt Bennett.
Questions grow after the screwworm is found in Texas. Commodity groups push to strengthen North America’s trading relationships. Farmers are called to talk about competition and options in the fertilizer industry. And, commodity market analysis with Matt Bennett.