Agricultural News
Analysis of GIPSA Rule Finds Substantial Costs
Wed, 10 Nov 2010 17:32:51 CSTA comprehensive economic analysis of USDA’s proposed rule on buying and selling livestock and poultry shows the proposed regulation would be bad for farmers and ranchers, bad for consumers and bad for rural America. The study - conducted by Informa Economics - was released in Kansas City Wednesday. According to the study - the regulation - known as the GIPSA rule - would result in more than 22-thousand lost jobs - an annual drop in gross domestic product by as much as 1.56-billion dollars - and an annual loss in tax revenues of 359-million dollars.
Informa Economics Senior Vice President Rob Murphy says this impact will not be immediate - and could take two to three years to reach the levels projected in the study. But the industries affected will feel the impact a decade or more into the future. At the same time National Cattlemens Beef Association President-Elect Bill Donald - is concerned about that impact. He says the rule will generate nearly a billion dollars in direct and indirect annual new costs for the beef industry. According to the study - 82-percent of those costs will fall on U.S. cattle producers.
Wisconsin pork producer Doug Wolf. President-Elect of the National Pork Producers Council, says the GIPSA rule is vague and ill-defined. He says that will create uncertainty for producers and packers - and will have a detrimental impact - particularly on small producers. The study was conducted on behalf of the National Cattlemen’s Beef Association, the National Meat Association, National Pork Producers Council and the National Turkey Association.
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