From Beef Stocker Trends, 11-28-'05
"Earl Pomeroy, D. ND, makes a new attempt to legislate the Markets. He co-sponsors HR 4257, titled "Captive supply Reform Act."
The bill would amend the P&S Act to prohibit forward contracts and formula pricing.
Definitions: FORWARD CONTRACT: "...oral or written contract for the purpose of livestock that provides for the delivery of the livestock to a packer at a date that is more than 7 days after the date on which the contract is entered into". FORMULA PRICING: "any price term that establishes a base from which a purchase price is calculated on the basis of a price that will not be determined or reported until a date after the day the forward price is established".
NOTE FROM Picket, et. al. vs IBP: "....all cattle producers are entitled to market preferences, but not to force their preferences on other segments of the market place."
Do we really want or need that degree of government control over how we market our cattle?
MRJ
"Earl Pomeroy, D. ND, makes a new attempt to legislate the Markets. He co-sponsors HR 4257, titled "Captive supply Reform Act."
The bill would amend the P&S Act to prohibit forward contracts and formula pricing.
Definitions: FORWARD CONTRACT: "...oral or written contract for the purpose of livestock that provides for the delivery of the livestock to a packer at a date that is more than 7 days after the date on which the contract is entered into". FORMULA PRICING: "any price term that establishes a base from which a purchase price is calculated on the basis of a price that will not be determined or reported until a date after the day the forward price is established".
NOTE FROM Picket, et. al. vs IBP: "....all cattle producers are entitled to market preferences, but not to force their preferences on other segments of the market place."
Do we really want or need that degree of government control over how we market our cattle?
MRJ