South Dakota Cattlemen’s Association says proposed GIPSA rule will hurt economy |

South Dakota Cattlemen’s Association says proposed GIPSA rule will hurt economy

Last week, the American Meat Institute released an economic analysis of the livestock marketing rule recently proposed by the U.S. Department of Agriculture’s Grain Inspection Packers and Stockyards Administration (GIPSA). Conducted by John Dunham and Associates, the economic impact study provides the livestock and meat industries with more clarity regarding the rule’s possible economic effects.

The study indicates significantly detrimental impacts for the economy nationally and in South Dakota. Nationwide, prices for meat and poultry products are predicted to increase by 3.33 percent, which translates to South Dakotans being forced to pay an additional $6.8 million for these products under the proposed rule. In addition, the economic impact analysis estimates that South Dakota companies that produce, process, distribute and sell meat and poultry products would lose more than 100 jobs and almost 300 jobs in supplier and ancillary industries would be lost. Most importantly, more than 60 producers would be put out of business in South Dakota under GIPSA’s proposed rule.

Bryan Nagel, South Dakota Cattlemen’s Association (SDCA) President and cattle feeder from Avon, noted, “The meat industry is an integral part of our economy here in South Dakota. If implemented as proposed, the GIPSA rule could put more than 450 South Dakotans out of work and result in a loss of $54.4 million in economic activity. This is not an insignificant impact to South Dakota’s workforce or economy and all South Dakotans should be concerned.”

“If implemented as proposed, GIPSA’s livestock marketing rule will inevitably raise prices for consumers, cut jobs across the state and nation, and leave no incentive for producers to raise high quality cattle,” said Nagel. “For these reasons we urge South Dakotans to become educated about the proposed rule and provide comments to GIPSA.”

The comment deadline for the proposed rule is Nov. 22, 2010. Comments may be submitted via e-mail to; mailed to Tess Butler, GIPSA, USDA, 1400 Independence Avenue, SW, Room 1643-S, Washington, DC 20250-3604; faxed to (202) 690-2173; or submitted via the Federal eRulemaking Portal at

For more information regarding the results of the economic impact study, visit Additional information regarding the proposed rule can be found on SDCA’s Web site at, NCBA’s Web site at, or the GIPSA Web site at