USDA’s Grain Inspection, Packers and Stockyards Administration’s proposed rule on livestock and poultry marketing is back in the spotlight following a letter 147 members of the U.S. House sent to Ag Secretary Tom Vilsack.
National Cattlemen’s Beef Association Vice President of Government Affairs Colin Woodall says the elected officials are holding USDA accountable in a big way. He notes the so-called GIPSA rule was a response to language included in the 2008 Farm Bill. But he says it goes well beyond the intent of Congress and puts big government right in the middle of livestock marketing…
“This rule forces cattle marketing to be based on an undefined measure of fairness rather than the competitive standard that’s been supported for over 90 years and supported by eight US Circuit Courts of Appeal. Exposing our marketing opportunities to a lawsuit just because someone else thinks the price you got is unfair is ridiculous, and will bring trial attorneys into marketing agreements and basically allow the government to tell cattle producers how to market their cattle and what the standard price of those cattle should be.”
According to Woodall - the proposed rule has outraged NCBA, many of its members and several others. During the comment period on the rule - USDA received over 60-thousand comments…
“USDA is currently reviewing these comments and they’ve been pretty quiet, and that quiet has lulled many to believe that this issue is over. However, we know for a fact that Secretary Vilsack plans to have a final rule out this year.”
Woodall says one of the major failures of the rule is that USDA didn’t conduct an economic analysis. He says they have no idea what the true impact will be on the cattle industry…
“Our own analysis shows that this rule will result in 837 million worth of losses. NCBA put pressure on the Secretary to actually conduct a USD analysis, and that work is going on now.”
Unfortunately - Woodall says the Secretary does not intend to allow review of - or comment on - that analysis before the GIPSA rule is finalized. NCBA and the members who signed the letter to Secretary Vilsack believe all stakeholders should have the opportunity to comment on the rule again once the analysis is completed.
While Woodall believes withdrawing the rule and developing a solution that is consistent with the intent of Congress is the only acceptable solution for the Secretary - he encourages cattle producers to request the opportunity to comment once again before the rule moves forward.
|