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GIPSA regulation changes

Shortgrass

Well-known member
THIS IS IMPORTANT TO BEEF PRODUCERS:

Even though the proposed regulation targets packers, the producer will feel the whiplash. The effect may not be positive either. There is a requirement to provide justification for deviation from a standard price. That would make the packer justify paying more for US cattle than Canadian or Mexican cattle. It would also be a violation of the act to pay more for cattle that a feeder has had good experience with the producer over a period of years than he would to another producer that he has had a bad experience with. We have all dealt with people that we would wish to avoid dealing with again. That ought not be illegal. This will likely result in an "average" price for all quality of cattle. A one size fits all price will fit no one.

Another provision would prevent a buyer from receiving commission from more than one packer to purchase cattle. However the buyer will be permitted rail or purchase cattle for resale to as many packers as he wants. These purchases could easily be pre-arranged. This solves nothing and could actually be counter productive to its intent because a buyer can undercut the commission paying purchaser. Under current law railing cattle and order buying for a commission by the same party is not permitted.

R-CALF is in support of these changes, as they believe that it will eliminate packer concentration, there by "restoring competition" to the marketplace. One thing for certain, this is a monumental event because the proposed changes will revolutionize the way we market cattle. I fear the change to the market will be comparable some other "change" we have recently experienced in our government. More government regulations seldom cure any problem.

Regardless of your position, you need to hear and be heard on this issue. Plan to attend a workshop in Fort Collins on Aug 27, 8:45 am. Secretary of AG Vilsac and US Attorney General Eric Holder (2 members of the Presidential Cabinet) will be there to hear your comments. So will R-CALF. I believe it will change the way we market cattle if we are not heard. You may register for the free meeting by going to https://regstg.com/Registration/RegForm.aspx?rid=d91b419b-cf8e-43e9-8f20-919ca06562dc&action=add
 

RobertMac

Well-known member
In my opinion, there is no way packers can be regulated to pay more for calves. Think about it...large packers have the most influence with the USDA and they know cheap food policy buys votes...the politicians holy grail!!!

The way to increase prices is to increase beef demand over supply.

Or maintain control over your product to where the consumer is paying you.
 

High Plains

Well-known member
The proposed changes to the P&S will not regulate for packers to pay higher prices. The effect would actually be to lower prices for the better cattle that may be worth more than average. In effect, removing all incentive to do a better job! What a total disaster. The unintended consequence will be to further de-value the cattle for the persons that the proposed rules are meant to protect.

Let the market work.

HP
 

Mike

Well-known member
High Plains said:
The proposed changes to the P&S will not regulate for packers to pay higher prices. The effect would actually be to lower prices for the better cattle that may be worth more than average. In effect, removing all incentive to do a better job! What a total disaster. The unintended consequence will be to further de-value the cattle for the persons that the proposed rules are meant to protect.

Let the market work.

HP

"No Preferences"..........................................

Sounds like all cattle will be sold at the same price......The minimum. :roll:
 

High Plains

Well-known member
EXACTLY! The changes would injure cattlemen instead of "protect" them. What's wrong with taking cattle "to the market", so to speak, and asking "the market" what the price should be? It's simple stuff!

I'm all for removing unfair practices that might be used against any one entity, but this ain't it folks!

HP
 
A

Anonymous

Guest
This is so typical of the arrogant "socialized cattle marketing" agenda of R-CALF. Those who don't sell fat cattle telling those who do how they can market those cattle. R-CALF/LMA arrogance has now reached epidemic proportions.

I am sure there is nothing the LMA would like more than to force fat cattle to be sold through the auction barns.

These same rules shoud apply to feeder cattle and yearlings. Then everyone can see R-CALF's agenda for what it really is, a socialized cattle market where everyone recieves the same price regardless of quality and numbers.


~SH~
 
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