Agricultural News
Subcommittee Hearing Examines GIPSA Rule's Affect on Small Businesses
Thu, 07 Jul 2011 15:20:15 CDT
On Thursday, July 7, 2011 at 10:00 am, the House Small Business Committee Subcommittee on Agriculture, Energy and Trade held a hearing entitled Regulatory Injury: How USDA's Proposed GIPSA Rule Hurts America's Small Businesses. The Committee examined the Grain Inspection, Packer and Stockyards Administration (GIPSA) Proposed Rule on livestock marketing practices.
The purpose of the hearing was to highlight the effects of the Proposed Rule on small businesses within the beef, pork and poultry industries and discuss the inadequacies in GIPSA's Initial Regulatory Flexibility Analysis.
Subcommittee Chairman Scott Tipton (R-CO) led the proceeding and said in his opening statements, "Saddling small farms and small businesses with more government regulations will only prolong our economic downturn and crush more jobs. In fact, if the GIPSA proposed rule is adopted, it has the potential to reduce gross domestic product by over $1.5 billion and cost the U.S. economy nearly 23,00 jobs."
The subcommittee did not hold back when it came time to question Edward Avalos, USDA Under Secretary of Marketing and Regulatory Programs. However, Avalos continued to stress the USDA's stance on the importance of small businesses in the agricultural industry.
"As you all know, small businesses are the lifeblood of our economy and where jobs are created and new ideas are tested," said Avalos. "The Secretary and I have long recognized the importance of farmers, ranchers and producers to rural communities. Our livestock and poultry producers benefit rural communities because they utilize other small local businesses, like hardware and feed supply businesses and local tractor dealerships, to succeed."
Another witness questioned by the subcommittee was Robbie LeValley of LeValley Ranch in Hotchkiss, Colo., a member of the National Cattlemen's Beef Association and president of Colorado Cattlemen's Association. LeValley expressed her concern with the GIPSA rule saying that the rule can not be "one size fits all."
LeValley said, "The proposed GIPSA rule will destroy our small business model, force us to lay off our employees, cripple our ability to market our cattle way we want to and limit consumer choice."
Avalos also said, "It is very appropriate that the Small Business Committee has decided to focus this hearing on small businesses in the livestock and poultry industries. The vast majority of farmers in general, and specifically livestock and poultry producers, are small businesses. There are currently over 70,000 hog producers, almost a million cattle farmers and ranchers, and nearly 20,000 poultry growers. The majority of these individuals are family-owned small businesses."
Click here for more information on the hearing from the Subcomittee.
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