Johnson, NCBA react to launch of USDA Cattle Contract Library pilot program

The U.S. Department of Agriculture launched its pilot Cattle Contracts Library yesterday (Jan. 31, 2023) on the Agricultural Marketing Service (AMS) Cattle Contract Library webpage. The Consolidated Appropriations Act of 2022 directed USDA to create a pilot library to increase market transparency for cattle producers. This pilot library will provide new disclosure to the industry and public regarding the key terms, conditions, and volumes under which cattle are contracted, bringing sunshine to practices in what is now the largest part of the cattle market. This will empower cattle producers to negotiate better terms, more carefully monitor risks relating to marketing preferences and pricing practices, and ultimately take better advantage of market opportunities to produce cattle that the market demands.

The Library’s online dashboard will go live on February 6, 2023.

South Dakota U.S. Representative Dusty Johnson applauded the launch. “I am glad USDA is taking steps to implement the Cattle Contract Library Act. This will benefit our cattle producers and ensure they’re all getting a fair shake. This program is a step in the right direction to improve our cattle market and transparency for producers.”

Johnson says currently, cattlemen do not have full access to contract terms being offered by packers, leading to a decline in leverage for smaller producers during price negotiations. The Cattle Contract Library will allow producers to view price components of cattle contracts, giving them more market information while protecting confidential business information of the contract holders.

National Cattlemen’s Beef Association Senior Director of Government Affairs Tanner Beymer is also please about the launch of the Cattle Contract Library pilot program. “We have been looking forward to the launch of the Cattle Contract Library pilot program and will review the product to determine if its current format provides value to cattle producers. We will continue engaging with officials at the U.S. Department of Agriculture and providing feedback on this resource.”

AMS will conduct a series of meetings and webinars in the coming weeks and months to help stakeholders understand how to use the pilot library. The first webinar is scheduled for February 8, 2023, at 11:00 a.m. ET. Details on that webinar, and all other information related to the pilot, can be found at www.ams.usda.gov/market-news/livestock-poultry-grain/cattle-contracts-library.