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NCBA spotlights worries of new rule

DENVER (DTN) – Though relatively quiet compared to other groups when it comes to debating USDA’s proposed new livestock competition rule, the National Cattlemen’s Beef Association will come out of its summer meeting this week planning to “educate and motivate” its members to fight USDA’s proposal.

Producers said the rule could lower the quality of beef produced in the countryside if packers opt not to provide pricing premiums. That translates into less desirable beef for consumers when cattle producers are searching for ways to boost demand, NCBA members said

USDA’s Grain Inspection, Packers and Stockyards Administration’s proposed new livestock rule last month has only emphasized the divide among producers. Some producers think packers have too much control over the markets. Others have entered into marketing agreements with packers and think they benefit from premiums in marketing contracts. The rule also requires packers to explain differences in pricing and premiums paid to producers, as well as marketing contracts.



The proposed rule would ban packer-to-packer sales, raising concerns among cattle producers who have invested in packing operations. Further, the rule attempts to loosen language on “harm to competition” that has been an impediment to producers suing packers over treatment.

Briefing the NCBA Executive Committee on Thursday, Colin Woodall, the group’s chief lobbyist, said the proposed rule goes beyond the intent of Congress by adding language defeated in the 2008 farm-bill debate. Woodall said the rule sets up the potential for a lot of legal battles.



“You have the potential of getting sued, just because somebody thinks a neighbor got more money than they did,” Woodall said.

DENVER (DTN) – Though relatively quiet compared to other groups when it comes to debating USDA’s proposed new livestock competition rule, the National Cattlemen’s Beef Association will come out of its summer meeting this week planning to “educate and motivate” its members to fight USDA’s proposal.

Producers said the rule could lower the quality of beef produced in the countryside if packers opt not to provide pricing premiums. That translates into less desirable beef for consumers when cattle producers are searching for ways to boost demand, NCBA members said

USDA’s Grain Inspection, Packers and Stockyards Administration’s proposed new livestock rule last month has only emphasized the divide among producers. Some producers think packers have too much control over the markets. Others have entered into marketing agreements with packers and think they benefit from premiums in marketing contracts. The rule also requires packers to explain differences in pricing and premiums paid to producers, as well as marketing contracts.

The proposed rule would ban packer-to-packer sales, raising concerns among cattle producers who have invested in packing operations. Further, the rule attempts to loosen language on “harm to competition” that has been an impediment to producers suing packers over treatment.

Briefing the NCBA Executive Committee on Thursday, Colin Woodall, the group’s chief lobbyist, said the proposed rule goes beyond the intent of Congress by adding language defeated in the 2008 farm-bill debate. Woodall said the rule sets up the potential for a lot of legal battles.

“You have the potential of getting sued, just because somebody thinks a neighbor got more money than they did,” Woodall said.

DENVER (DTN) – Though relatively quiet compared to other groups when it comes to debating USDA’s proposed new livestock competition rule, the National Cattlemen’s Beef Association will come out of its summer meeting this week planning to “educate and motivate” its members to fight USDA’s proposal.

Producers said the rule could lower the quality of beef produced in the countryside if packers opt not to provide pricing premiums. That translates into less desirable beef for consumers when cattle producers are searching for ways to boost demand, NCBA members said

USDA’s Grain Inspection, Packers and Stockyards Administration’s proposed new livestock rule last month has only emphasized the divide among producers. Some producers think packers have too much control over the markets. Others have entered into marketing agreements with packers and think they benefit from premiums in marketing contracts. The rule also requires packers to explain differences in pricing and premiums paid to producers, as well as marketing contracts.

The proposed rule would ban packer-to-packer sales, raising concerns among cattle producers who have invested in packing operations. Further, the rule attempts to loosen language on “harm to competition” that has been an impediment to producers suing packers over treatment.

Briefing the NCBA Executive Committee on Thursday, Colin Woodall, the group’s chief lobbyist, said the proposed rule goes beyond the intent of Congress by adding language defeated in the 2008 farm-bill debate. Woodall said the rule sets up the potential for a lot of legal battles.

“You have the potential of getting sued, just because somebody thinks a neighbor got more money than they did,” Woodall said.

DENVER (DTN) – Though relatively quiet compared to other groups when it comes to debating USDA’s proposed new livestock competition rule, the National Cattlemen’s Beef Association will come out of its summer meeting this week planning to “educate and motivate” its members to fight USDA’s proposal.

Producers said the rule could lower the quality of beef produced in the countryside if packers opt not to provide pricing premiums. That translates into less desirable beef for consumers when cattle producers are searching for ways to boost demand, NCBA members said

USDA’s Grain Inspection, Packers and Stockyards Administration’s proposed new livestock rule last month has only emphasized the divide among producers. Some producers think packers have too much control over the markets. Others have entered into marketing agreements with packers and think they benefit from premiums in marketing contracts. The rule also requires packers to explain differences in pricing and premiums paid to producers, as well as marketing contracts.

The proposed rule would ban packer-to-packer sales, raising concerns among cattle producers who have invested in packing operations. Further, the rule attempts to loosen language on “harm to competition” that has been an impediment to producers suing packers over treatment.

Briefing the NCBA Executive Committee on Thursday, Colin Woodall, the group’s chief lobbyist, said the proposed rule goes beyond the intent of Congress by adding language defeated in the 2008 farm-bill debate. Woodall said the rule sets up the potential for a lot of legal battles.

“You have the potential of getting sued, just because somebody thinks a neighbor got more money than they did,” Woodall said.


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