Agricultural News
As GIPSA Rule Public Comment Period Ends- Oklahoma Pork Council Blasts One SIze Fits All Approach of USDA
Mon, 22 Nov 2010 20:27:43 CST
Oklahoma's pork industry would be devastated by the "one-size-fits-all" rule recently proposed by the Grain Inspection Packers and Stockyards Administration (GIPSA) of the United States Department of Agriculture, said the Oklahoma Pork Council (OPC) in comments submitted to USDA.
"As proposed, the GIPSA rule is bad for farmers and ranchers, retailers and consumers," said Roy Lee Lindsey, OPC executive director. "We'd like the agency to issue separate, appropriate, clear and legally supportable rules consistent with Congressional grants of authority, for each of the poultry, swine and beef industries, recognizing that each segments of the meat industry is unique."
In comments on the proposed rule, OPC said GIPSA and USDA exceeded their authority on certain provisions of a proposed rule which would change the buying and selling of hogs. Further, the agency failed to base the proposed rule on reliable data and information. And finally, USDA has declined to recognize its own studies concerning the economic effects of the rule.
In its comments, OPC said the "one-size-fits-all" approach to rule making would have a devastating impact on the structure of Oklahoma's pork industry. For example, the prohibition on packers, or entities owned by packers, from selling hogs to another packer would increase operating costs for producers because they would have to incorporate a middleman.
With an estimated 15,000 jobs supported by the Oklahoma pork industry and more than $555 million in cash receipts annually, the lack of a meaningful analysis of its impact on the pork industry, retailers and consumers is concerning, OPC also pointed out.
"This proposed rule has the possibility of negatively affecting not only Oklahoma agriculture but also the nation's agricultural system," Lindsey said.
OPC asked that GIPSA withdraw the portions of the proposed rule that will have an immediate and detrimental impact on the pork industry. It also requested a thorough and comprehensive practical, legal and economic analysis of the costs and benefits of such rules.
USDA's Grain Inspection, Packers and Stockyards Administration issued the rule June 22, 2010. A public comment period ends Nov. 22. The rule, which was prompted by the 2008 Farm Bill, would amend the Packers and Stockyards Act (PSA), which regulates livestock and poultry contracts and marketing practices.
Click here to review the comments submitted by the Oklahoma Pork Council to the USDA.
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