Meat+Poultry - November 2020 - 14

WA S H I N G T O N

Reforming the cattle industry
US Representative Dusty Johnson
(R-SD) and other US House members
introduced the Price Reform in Cattle
Economics (PRICE) Act, a bill to
increase transparency in the cattle
market, improve risk management
and support new and expanding meat
processors. Johnson introduced the
bill in response to the findings of the
"Box Beef & Fed Cattle Price Spread
Investigation Report," which identified
systemic issues in the cattle market.
Earlier in the year, Agriculture
Secretary Sonny Perdue directed
the US Department of Agriculture
Agricultural Marketing Service
(AMS) to conduct an investigation
to look for evidence of fraud in the
wake of the fire at Tyson Food Inc.'s
Holcomb, Kan., beef processing plant
in 2019. In addition, USDA requested
further investigation into beef market
disruptions caused by the pandemic.
The report said the purpose of the
investigation was to examine "whether
any regulated entities violated the
Packers and Stockyards Act by taking
advantage of the situation through price
manipulation, collusion, restrictions of
competition, or other unfair practices."
The report found no infringement
by industry stakeholders related to
either event.
"In its analysis of the effects of the

(USCA) and the National Cattlemen's
fire and the pandemic, USDA found
Beef Association (NCBA) expressed
no wrongdoing and confirms the
their support.
disruption in the beef markets was
"The provisions laid out in the
due to devastating and unprecedented
PRICE Act provide a solid
events," said Julie Anna Potts,
foundation with which to
president and chief executive
build out a Livestock Title
officer of the North
The
in the next farm bill,"
American Meat Institute
PRICE Act was
created to increase
said Justin Tupper, vice
(NAMI) in July when the
transparency in the
president of USCA. "Both
report was released. "It
cattle market and
the 2018 and 2014 Farm
is difficult to see how the
support meat
Bills failed to include a
USDA's recommended
processors.
specific title for livestock,
legislative proposals would
instead dumping those
have changed the outcome of
programs into the 'miscellaneous'
the fire or the pandemic."
bin. The sections included within
According to Johnson the PRICE
the PRICE Act offer a solid base
Act provides greater price reporting,
with which to begin constructing a
transparency and risk management
clear, concise, and dedicated section
solutions. The congressman also said it
within the framework of the largest
bolsters small processor and produceragriculture-related legislation to
owned cooperative processing
bolster the livestock sector."
opportunities and updates the Packer
Ethan Lane, NCBA's vice president
and Stockyards Act to create a cattle
of government affairs, added, "The
contract library.
Tyson fire in Holcomb, Kan., and the
"Cattle country is hurting and has
supply chain disruptions caused by
not fully recovered," Johnson said.
the COVID-19 pandemic have brought
"USDA laid out several areas where
the issues of price transparency in the
Congress can implement real solutions
cattle markets and beef processing
to improve the market - the PRICE
capacity to a boiling point within our
Act is the answer to many of the issues
industry. This legislation is a significant
our ranchers have faced for years.
step in the right direction as we
Our producers want a fair market and
continue to explore ways to support
fair prices and that's what this bill
producers who have been impacted
delivers. Congress needs to deliver for
by two major black swan events, in an
cattle country."
After releasing the bill proposal, the already volatile cattle market."
United States Cattlemen's Association
RYA N M CC A RT H Y | r m c c a r t hy @s o s l a n d.c o m

- DUSTY JOHNSON

14

MEAT+ POULTRY | 11.20 | www.meatpoultry.com

Gary Blakeley/Shutterstock.com

"The PRICE Act is the answer
to many of the issues our
ranchers have faced for years."
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Meat+Poultry - November 2020

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