Agricultural News
Monday November 22 Concludes Public Comment Period for GIPSA Rule
Mon, 22 Nov 2010 6:37:02 CST
Monday, November 22, 2010 concludes the public comment period for the GIPSA Rule on how livestock can be marketed in the United States. Thousands of comments have been submitted to the USDA both for and against the finalization of the rule by GIPSA and there is no indication how long they will take to review all comments, answer questions raised, make adjustments to the rule and release the revised product for all to see. If you want to go back and read the rule one last time and get info on how to submit a comment- click here for our Read the Rule page.
On today's Beef Buzz, we go back to the Informa Economics study on the GIPSA Rule. The study was conducted by Informa Economics Inc. on behalf of the National Cattlemen's Beef Association (NCBA), the National Meat Association (NMA), the National Pork Producers Council (NPPC) and the National Turkey Federation (NTF) and showed that the rule would result in job losses of more than 22,800, with an annual drop in gross domestic product by as much as $1.56 billion and an annual loss in tax revenues of $359 million.
In their conclusion to their report, "An Estimate of the Economic Impact of GIPSA's Proposed Rules," Informa writes, "during the course of this study, it became clear to us that the provision in the rule that relieves plaintiffs from the burden of proving competitive injury is by far the most damaging. Simply removing that one provision could reduce the economic damage expected from the rule by nearly 75%. All of the expected efficiency losses and demand decline that forms the basis for the largest portion of the costs are tied back directly to the packer/processors' fear of increased litigation and an increased likelihood that a very large financial judgment will be rendered against them. That is the factor that will drive the packers to sharply reduce their use of AMAs, which in turn creates large costs in terms of efficiency and product quality."
We explore that idea with Rob Murphy, one of authors of the study with Informa Economics.
Click here for our earlier study of the Informa Report released about 10 days ago.
The Beef Buzz is a regular feature heard on radio stations around the state on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the listen bar below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
Ron Hays Beef Buzzes on the final day of the GIPSA Rule with Rob Murphy of Informa Economics.
Ron Hays Beef Buzzes on the final day of the GIPSA Rule with Rob Murphy of Informa Economics.
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