The U.S. Cattlemen’s Association, the National Farmers Union, along with 11 other groups sent a letter to the Senate Ag Committee requesting a hearing on livestock mandatory price reporting reauthorization.
The Livestock Mandatory Reporting Rule, first established in 1999, mandates price reporting for cattle, boxed beef, swine, and lamb. It’s reauthorized every five years, with the current program expiring on September 30 of this year. The 13 groups say it represents an opportunity to make meaningful change to the program to increase transparency and true price discovery.
According to a 2019 Congressional Research Service report, a common mistake among industry stakeholders is “the low volume of negotiated purchases and a parallel trend toward increased formula purchases or other marketing arrangements.
Other concerns include confidentiality and a lack of clarity on how transactions are categorized in reports.” USCA and the other groups strongly urge the Senate Ag Committee to examine all available solutions to the current market factors depressing livestock prices and the increasing consolidation facing the U.S. cattle industry.
They say the industry is running out of time to work towards a positive reauthorization of the program. USCA says the livestock industry requires “bold leadership to realign the marketplace with its fundamentals, and that starts with modernizing the Livestock Mandatory Reporting Program.”