Today, Congresswoman Cindy Axne (IA03) and Congressman Randy Feenstra (IA04) introduced updated bipartisan legislation to return fairness to the cattle marketplace dominated by four major meatpackers.
“Iowa’s independent cattle producers deserve a cattle market that provides them with fair and equal footing, and this updated legislation brings us one step closer to making that reality,” said Rep. Axne. “These critical reforms will help ensure that Iowa’s local producers can keep their doors open and participate in the market, and I will continue working with my colleagues in Congress to move these reforms forward.”
“The Big Four Meat Packers are illegally distorting the cattle market to increase their profits at the expense of Iowa family farmers. It’s shameful and it’s wrong,” said Rep. Feenstra. “The Cattle Price Discovery and Transparency Act will finally expose the Big Packers’ price-fixing schemes and hold them accountable for their antics. I am proud to introduce this important legislation with my Iowa colleagues Senator Grassley and Rep. Axne to bring transparency to the cattle marketplace and ensure that our producers and their families are paid a fair price for their high-quality product.”
“Last week’s House Agriculture Committee hearing reiterated the need for meaningful cattle market reform,” said Bob Noble, President of the Iowa Cattlemen’s Association. “The introduction of the updated Cattle Price Discovery and Transparency Act in the House is a timely and befitting response from Reps. Axne and Feenstra. We’ve asked Congress to support a transparent and competitive marketplace with action, and we thank Iowa’s congressional delegation for answering the call.”
Decreased participation in the negotiated cash market has forced Iowa producers to bear the burden of price discovery and reduced competition.
The updated Cattle Price Discovery and Transparency Act would remedy this by:
- Requiring the Secretary of Agriculture to establish 5-7 regions encompassing the entire continental U.S. and then establish minimum levels of fed cattle purchases made through approved pricing mechanisms. Approved pricing mechanisms are fed cattle purchases made through negotiated cash, negotiated grid, at a stockyard and through trading systems that multiple buyers and sellers regularly can make and accept bids. These pricing mechanisms will ensure robust price discovery and are transparent.
- Establishing a maximum penalty for covered packers of $90,000 for mandatory minimum violations. Covered packers are defined as those packers that during the immediately preceding five years have slaughtered five percent or more of the number of fed cattle nationally.
A one-page summary of the bill is available HERE. A section-by-section summary is available HERE.
U.S. Senators Chuck Grassley (R-Iowa), Deb Fischer (R-Neb.), Jon Tester (D-Mont.), and Ron Wyden (D-Ore.) introduced updated companion legislation in March.
Original source can be found here.
