Agricultural News
State Cattle Groups Are Divided Over Moving Forward on Cattle Transparency Legislation Before Industry Plan is Allowed to Work
Mon, 02 Nov 2020 05:35:25 CST
Nineteen state cattle organizations, including the Oklahoma Cattlemen's Association, the Texas Cattle Feeders Association, Texas and Southwestern Cattle Raisers and the Kansas Livestock Association, have all signed a letter to the leadership of the House and Senate Ag Committees- asking that action on the Cattle Transparency Act of 2020 be postponed to allow the work being done by the National Cattlemen's Beef Association and it's state affiliates have time to show whether or not it can provide improved price discovery in a market driven way. The letter reads "The undersigned state cattle organizations respectfully urge that action on H.R. 8557 and S. 4647 be postponed until an industry-driven solution to increase negotiated trade is given time to be tested. Several of our organizations, along with other members of the National Cattlemen's Beef Association (NCBA), have developed a solution to improve price discovery. This group of industry experts is also working with multiple university economists to examine the levels of negotiated trade that support robust price discovery in various regions of the country and how new proposals could improve price discovery. NCBA affiliates unanimously approved this approach, rather than immediately requesting government intervention in cattle marketing practices, at the 2020 NCBA summer business meeting."
This letter is in contrast to an earlier call by seventeen state cattle groups- led by Missouri and Iowa Cattlemen- supporting H.R. 8557 and S. 4647- click here for that earlier story.
Besides the Missouri Cattlemen's Association supporting this legislation- the New Mexico Cattle Growers Association and the Arkansas Cattlemen's Association signed that earlier letter.
This most recent letter describes the efforts of the cattle industry to adopt what has been called a 75% percent plan- and the letter concludes "It is important to note that increasing negotiated trade will aid in price discovery, but historical data show it will not necessarily lead to higher cattle prices. Supply and demand factors significant growth in the U.S. cow herd and decreased packing plant capacity are the principle reasons for recent price decreases. Likewise, no amount of negotiated trade will prevent price declines or supply disruptions during major events such as the COVID-19 pandemic.
"The cattle industry has come together to address the lack of robust price discovery in fed cattle markets. We respectfully request that no action be taken on H.R. 8557 and S. 4647 until the industry solution outlined above can be implemented and tested."
You can read the letter that Oklahoma Cattlemen and the 18 other cattle groups signed by clicking on the PDF link below.
00006_OCA_Negotiated_Trade_and_Price_Discovery_Letter_to_Congress.pdf
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