Act Would Bring Greater Fairness, Transparency to Cattle Market
Washington – Yesterday, the Cattle Price Discovery and Transparency Act was officially introduced by Sens. Chuck Grassley (R-IA), Deb Fischer (R-NE), Jon Tester (D-MT), and Ron Wyden (D-OR) Companion legislation was also announced in the U.S. House of Representatives, co-sponsored by Reps. Cindy Axne (D-IA) and Randy Feenstra (R-IA). National Farmers Union (NFU) supports this legislation and urges Congress to act quickly to pass this critically important legislation.
“Corporate consolidation in the cattle industry has given multinational meatpackers undue control over cattle markets,” said NFU President Rob Larew, “Uncompetitive markets hurt family farmers and ranchers and undermine our food security. NFU has been – and will continue to be – steadfast in our support for legislation that ensures a fair market for family farmers and combats the monopoly power of multinational meatpacking corporations.”
“Farmers Union members thank Senators Grassley, Tester, Fischer, and Wyden for introducing the Cattle Price Discovery and Transparency Act. These meaningful reforms would increase price discovery and transparency in the cattle market. We also thank Representatives Axne and Feenstra for advancing a companion bill in the House,” Larew added.
The legislation would bring greater fairness to cattle markets, shedding light on a market that is often opaque.
- Establishes mandatory minimums for cash and negotiated grid trading, based on an 18-month rolling average, in each cattle marketing region.
- Brings more transparency by requiring reporting of cattle weights and slaughter deliveries two weeks in advance.
- Establishes a publicly-available cattle contract library.
- Sets severe penalties for violations by packers.
- Requires livestock mandatory reporting data be made consistently available.