WASHINGTON, DC- National Cattlemen’s Beef Association Vice President, Government Affairs, Ethan Lane Wednesday (July 22, 2020) released the following statement in response to the release of the results of the U.S. Department of Agriculture’s (USDA’s) investigation into cattle markets:
“We are pleased that USDA has produced a report into the market dynamics impacting cattle producers across the country. Since NCBA initially requested this investigation, this issue has remained a central topic of conversation for NCBA, our state affiliates, and cattle producers throughout the country. While we are collectively still awaiting the results of the Department of Justice’s ongoing investigation into these issues, the information in this report will be very helpful and timely to the cattle industry’s robust discussion of cattle markets and price discovery during our Summer Business Meeting in Denver next week.”
WASHINGTON, DC– The USDA released a report on its investigation into disparities between prices paid to farmers and beef prices at grocery stores. The following statement is from American Farm Bureau Federation President Zippy Duvall:
“We appreciate the USDA’s thorough examination of the beef markets. There’s little doubt that something is wrong when consumers are paying higher prices for meat and at the same time America’s farmers and ranchers are being paid less.
“We are pleased the USDA responded to our call for an investigation, but it’s important to note the scrutiny of the markets is not concluded. USDA indicates their examination continues and investigations by the Commodity Futures Trading Commission, as well as the Department of Justice, are ongoing.
“We are reviewing the policy recommendations the USDA put forth in the report and look forward to working with them and Congress to ensure markets remain fair for everyone involved.”
WASHINGTON, DC- U.S. Sen. John Thune (R-S.D.) Wednesday (July 22, 2020) issued the following statement after the U.S. Department of Agriculture (USDA) released a report on its investigation into cattle market volatility during the coronavirus pandemic and following a 2019 fire at a Tyson Foods beef plant in Holcomb, Kansas. The report provides an analysis on cattle market conditions and considerations for improving the cattle market. The investigation into potential violations of the Packers and Stockyards Act is ongoing.
“South Dakota’s cattle producers are facing extreme volatility in the cattle market, and I remain concerned about potential anticompetitive activity in the highly concentrated meatpacking industry.” said Thune. “I look forward to reviewing the considerations provided in this report, and I will continue to press the Department of Justice to conclude its investigation into potential price manipulation and other anticompetitive activities in the meatpacking industry.”
On April 8, 2020, Thune urged USDA to take further action to strengthen the integrity of the cattle market by requesting that USDA’s Packers and Stockyards Division investigate the cattle market volatility due to the COVID-19 pandemic and to conclude its investigation into beef pricing margins after the Holcomb, Kansas, Tyson plant fire. The following day, Thune urged Attorney General William Barr to open an investigation into the beef industry.
WASHINGTON, DC- U.S. Representative Dusty Johnson (R-S.D.) issued a statement following the U.S. Department of Agriculture’s (USDA’s) release of the “Box Beef & Fed Cattle Price Spread Investigation Report.” This investigation was announced by USDA Secretary Perdue on August 29, 2019, following the Holcomb, Kansas fire and was expanded to cover COVID-19 after the cattle market faced price disruption.
“I’m disappointed the investigation’s report did not conclude or outline any potential violations of the Packers and Stockyards Act. This report is incomplete, and I will continue to push USDA to finish the job,” said Johnson.
“I am pleased that the report identified a number of policy approaches to address market weaknesses. Many of USDA’s suggestions directly relate to cattle market legislation I’ve already been fighting for. In its report, USDA highlighted the importance of small processor capacity and risk management tools for producers, my bills would solve both areas of market weakness. We have more work to do. I’m hopeful USDA’s support will only drive the momentum of getting these proposals across the finish line.”
Rep. Johnson is supportive of several policy proposals included in USDA’s investigation report and has introduced several bills on related areas of weakness:
USDA calls for adding capacity at the small processor level:
- This year Rep. Johnson introduced H.R.6977, Small Packer Overtime and Holiday Fee Relief for COVID-19 Act of 2020 and H.R.7425, the DIRECT Act of 2020 to accomplish these exact goals without compromising food safety or export markets, as outlined in the report.
USDA Rural Development lending program should be tailored to help processors:
- Rep. Johnson is currently working on legislation to improve these tools to make them more available to small processors wishing to expand or producer cooperatives to enter this space.
USDA supports better risk management tools for livestock producers:
- In the aftermath of the Holcomb fire, Rep. Johnson introduced H.R.4773, Livestock Risk Management and Education Act to work with land grant universities and industry organizations to develop tools to assist small producers who wish to utilize these risk management tools.
USDA called for greater transparency and price discovery:
- Rep. Johnson has been a strong supporter of greater transparency and regulatory equality by introducing H.R.5728, Food Safety Modernization for Innovative Technologies Act and cosponsoring H.R.4881, the Real MEAT Act of 2019 to address imitation meat labeling. He continues to discuss options to ensure accurate price discovery that benefits and expands producer marketing options.
WASHINGTON, DC- Iowa Republican Senator Chuck Grassley applauded the report, saying, “The cattle market industry is broken.” Grassley says, “Congress has a responsibility to heed the advice of this report and take action to restore cattle price transparency.”
WASHINGTON, DC- The North American Meat Institute, however, notes the report identifies no wrong-doing, and affirms that two extreme and unforeseen events affected beef markets. NAMI President and CEO Julie Anna Potts stated, “It is difficult to see how the USDA’s recommended legislative proposals would have changed the outcome of the fire or the pandemic.”
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