Brand Committee opposes Nebraska brand bill
A Nebraska bill to allow some feedlots to apply for “exempt” status from brand inspection requirements and to raise the cap on the brand inspection and recording fees awaits a floor hearing.
The Nebraska Cattlemen, the Nebraska Brand Committee, the Independent Cattlemen of Nebraska and the Nebraska Farm Bureau all stand in opposition to LB 646.
Senator Teresa Ibach of Dawson County sponsored LB 646 that, as amended would give feedlots that meet certain criteria the chance to be considered exempt from some brand inspection requirements. Some of the requirements to qualify for “exempt” status would be: the feedlot typically feeds cattle to slaughter, the feedlot maintains permanent fencing and keeps cattle separated based on ownership.
Grow yards affiliated with exempt feedyards would also be eligible to apply for exempt status.
The law will not change the requirement for cattle to be inspected when ownership changes or when cattle move outside of the brand inspection area, so some cattle entering an exempt feedlot that originate in the brand inspection area, should still be accompanied by brand inspection paperwork.
Ibach, in a guest opinion, wrote that her bill “provides for cattle transferred to the care of another individual without actual transfer of ownership to not be subject to inspection if proof of temporary possession is provided,” she said. “There are several ways currently in brand statute to provide for such proof. This benefits our cattle industry in that cow/calf producers will not be subject to brand inspection if there is no change of ownership when moving cattle.”
Ibach goes on…”As amended, LB 646 creates the EFL (Exempt Feed Lot) classification…
“EFL’s will be required to maintain records of ownership, as currently required. Forms of ownership will include brand inspection into a feedlot or other proof of ownership for cattle coming from out of the brand inspection area, or records proving retained ownership within the brand boundaries.”
Nebraska currently allows feedlots to apply for a registered feedlot (RFL) status which requires the feedlots to inspect cattle in, and allows those feedlots the flexibility to ship cattle to a terminal market without an inspection. This allowance helps ensure slaughter-ready cattle are not subject to added stress, and also to allow feedyards to ship at night time when needed. While cattle leaving RFLs destined for slaughter do not require a brand inspection, they are inspected into the feedlots and by law the bookwork is audited regularly. RFLs currently pay a once per year fee of $1 per head of the feedlot’s carrying capacity. It is understood that feedlots often turn cattle over more than once per year, making their brand inspection fees less than $1 per head.
In simple terms, RFLs are paying “up front” for their brand inspection to a terminal destination. With LB 646, exempt feedlots would no longer pay that fee. Any cattle not originating in an exempt feedlot would still be subject to a brand inspection when headed to a terminal market.
LB 646 as amended would also increase the brand inspection fee cap to from $1 to $1.50 and the brand recording fee cap from $200 to $400 every four years.
Chris Gentry, a rancher from north of Hyannis, who sits on the five-member, governor-appointed Nebraska Brand Committee, which is charged with oversight of the brand law, said neither he nor the committee support the bill.
“LB646, introduced by Sen. Ibach this session, severely and fundamentally hobbles the system of checks and balances that currently protects the entire cattle industry in the state,” said the Brand Committee in a joint statement.
They went on to say, “despite our role in safeguarding the industry, the Brand Committee was not consulted during the drafting of LB646 and has not been afforded a meaningful opportunity to be a contributor to discussions on a path forward and the amendments drafted. When given what chance it had to share its concerns, the Brand Committee expressed its opposition to the bill, its negative impact on the integrity of the brand system, and, should the bill pass, the need for options to address resulting fiscal consequences that would impact continued operations that are critical to the protection of the industry.
“The Nebraska Brand Committee opposes any measure that seeks to weaken the core mission of recording brands, inspecting cattle, and policing violations of the Livestock Act.”
Senator Ibach, in her guest opinion, said that raising the inspection fee cap came “at the request of the Brand Committee.” However, Gentry told TSLN that the Brand Committee only requested a cap on the inspection fee due to concern that LB 646 would cause feedlot brand inspections to cease, leaving a major gap in revenue for the committee.
Gentry believes that eliminating the brand inspection requirement for some feedlots and affiliated grow yards will weaken the integrity of the brand inspection program. “We did not help construct this bill,” he said.
Another Nebraska rancher who served on the brand committee about a decade ago is also concerned with the affect the bill would have on the entire industry. Joe Pongratz O’Neill, Nebraska, said that when he served on the Brand Committee, some feedlot owners opposed a brand inspection fee increase. The Committee surveyed RFLs to determine their satisfaction with the program and RFLs overwhelmingly responded with support for the current brand inspection program.
Pongratz said cattle theft is common and it can occur in a number of ways such as in divorce settlements, business partnerships and within the feed yard itself. He said a feed yard manager could move cattle from pen to pen to cover death loss, and without third party verification, these activities will likely go undetected.
Penalties for cattle thieves are often too light, said Pongratz. “People won’t learn if they just get a slap on the wrist,” he said. He believes stiffer court penalties would help prevent some thefts, and he said removing the brand inspection requirement for some feedlots will open the door for more dishonesty.
News Channel Nebraska reported March 18, 2025, on a Northeast Nebraska feedlot owner’s cattle theft conviction. Travis Belina of Battle Creek was convicted of stealing cattle from a different feedlot and slaughtering them for his own use, according to the news story.
Black Shirt feeders, expected to eventually have room for 150,000 head of cattle in Western Dundy County, told TSLN’s sister publication, The Fence Post that it is supportive of LB 646 because of the anticipated cost savings.
LB 646 is expected to be heard on the floor Tuesday, March 25, 2025.
