March 23, 2014 Billings, Mont. – Recently, R-CALF USA provided written testimony to the House Agriculture Appropriations Subcommittee. This testimony encourages Congress to exclude “any legislative riders in the 2015 appropriations bill that would have the effect of limiting or restricting the Secretary of Agriculture’s ability to write rules necessary to properly implement, administer and enforce the Packers and Stockyards Act of 1921 (PSA). 

“R-CALF USA’s members and affiliates have been harmed by Congress’ inclusion of legislative riders in each of the past three fiscal years that effectively prevented the Secretary from preserving and protecting competitive marketing opportunities for independent livestock sellers. During each of the past three fiscal years, the Secretary has been inexplicably prohibited from writing rules pursuant to the Packers and Stockyards Act to ensure that independent livestock sellers are treated fairly in the marketplace…” 

The testimony also states that previous riders enabled meatpackers to rapidly destroy the spot or cash market. This market is the U.S. cattle industry’s only price-discovery market, and establishes the base price for virtually all cattle. The four largest meatpackers control approximately 84 percent of the cattle market. With this oligopoly power, meatpackers have restricted independent producers from timely access to the marketplace for their perishable product, which has forced them to commit their cattle without a competitive bid.  

Meatpackers are also flexing their muscle at consumers. They are simultaneously paying farmers and ranchers less for cattle while charging consumers higher prices for beef. This illustrates that claims made previously by the meatpackers – that consumers would be harmed by higher beef prices if the PSA was enforced – are false.

R-CALF USA states in its testimony, “The effect of the Secretary’s congressionally-induced failure to properly implement and enforce the Packers and Stockyards Act is that the competitiveness of the U.S. cattle markets has been seriously eroded.” This erosion affects economies of small-town America, and all U.S. beef consumers.  

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R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is the largest producer-only cattle trade association in the United States. It is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. For more information, visit www.r-calfusa.com or, call 406-252-2516.