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Agricultural News

R-Calf Analysis of GIPSA Rule Impact Called Incomplete and Inappropriate

Thu, 12 Aug 2010 9:57:35 CDT

R-Calf Analysis of GIPSA Rule Impact Called Incomplete and Inappropriate In response to a News Release from R-Calf USA, US Premium Beef has released the following statement that indicates they plan on commenting themselves on the impact of the GIPSA proposed Marketing Rules at a later date:

The United States Department of Agriculture's (USDA) Grain Inspection, Packers and Stockyards Administration's (GIPSA) Proposed Rule (published in the Federal Resister on June 22, 2010) is potentially one of the most significant changes in our industry's recent history. The USDA has wisely allowed our industry more time to analyze the impact of this Proposed Rule on producers and consumers alike by extending the comment period to November 22, 2010.

Some special interest groups have provided opinions on how this Proposed Rule would impact U.S. Premium Beef, its unitholders and associates. There continues to be many unanswered questions regarding this rule that are concerning to us. We are thoroughly analyzing how the Proposed Rule would impact our company, its producers and consumer customers. We will reserve further comments until we have completed our analysis.

In the meantime, we have communicated with the USDA (see letter below) concerning the analysis by one special interest group that is incomplete and inappropriate given that it does not have all the facts and circumstances concerning our company, nor does it represent U.S. Premium Beef or its producers.

The following is the letter sent by US Premium Beef CEO Steven Hunt to USDA.   

August 11, 2010

Secretary Tom Vilsack
U.S. Department of Agriculture
1400 Independence Ave., S.W.
Rm 200A
Washington, DC 20250

Sent Via E-mail and Facsimile

Re: July 28, 2010, R-Calf USA Letter Regarding The Effect
of the Proposed GIPSA Rule on U.S. Premium Beef

Dear Secretary Vilsack:

We recently became aware of a communication sent to Administrator Butler dated July 28, 2010, from R-Calf USA
(R-Calf), regarding the effect of the proposed GIPSA Rule (published in the Federal Register on June 22, 2010) on
U.S. Premium Beef, LLC (USPB) and its unitholders and associates. As a third party organization, independent of
USPB, R-Calf does not speak for USPB or its unitholders and associates.

The July 28 communication by R-Calf is an unsolicited request by a special interest group desiring the USDA to
determine whether or not USPB would be subject to the USDA's proposed GIPSA Rule. R-Calf's conclusions
regarding USPB are based on what "appears" to be the facts about USPB, National Beef Packing Company, LLC
(National Beef) (our subsidiary) and the proposed GIPSA Rule. No agency should respond based on what
"appears" to be the facts, especially when made by a third party organization such as R-Calf that does not have
access to all of the facts and may have interests in conflict with those of USPB and its unitholders and associates.

Responding to R-Calf's request is improper particularly when its analysis is based on pieces of information from
websites and R-Calf's limited knowledge of USPB and National Beef's operations. If the USDA responds to RCalf's
request regarding USPB, it is essentially declaring its enforcement intentions without being informed about
the facts and circumstances that it, the USDA, wants to regulate or enforce.

In summary, we respectfully request that the USDA not respond to requests like R-Calf's as to how USPB or its
unitholders and associates are impacted by a proposed rule. USPB will be submitting official comments regarding
the impact of the proposed GIPSA Rule on USPB and its unitholders and associates. Thank you for your


Steven D. Hunt
Chief Executive Officer

Cc: Administrator J. Dudley Butler
Deputy Under Secretary John Ferrell
Senior Advisor Doug O'Brien



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