Shortgrass
Well-known member
I put this in Bull Session, but will put it here for exposure also. Please put controversial replies in that forum, but,
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, Colorado 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
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, Colorado 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
