Grassley had told reporters earlier this week that the legislation has a greater chance of being considered in the Senate Agriculture Committee with the change in leadership this year. The bill and similar legislation that has been introduced will likely be considered as Congress takes up a reauthorization of the Livestock Mandatory Price Reporting Act. That legislation is due for renewal before the end of September.
U.S. Cattlemen’s Association (USCA) President Brooke Miller commended Grassley for continuing to champion the legislation and said USCA also supports the Cattle Market Transparency Act of 2021 introduced by Sen. Deb Fischer, R-Neb.
“As Congress looks to the reauthorization of the Livestock Mandatory Reporting Program (LMR) prior to its expiration on September 30, 2021, USCA appreciates any and all efforts to reform the program,” Miller said. “LMR must be better utilized as a mechanism for accurate and transparent reporting in order to advance price discovery and shore up the fundamentals of the CME cattle futures contracts.”
But the National Cattlemen’s Beef Association (NCBA) said the Tester-Grassley bill is the wrong answer for the industry.
“NCBA has and will continue to work alongside our affiliates, Congress, and USDA to increase price discovery and improve the business climate for producers across the country,” NCBA Vice President of Government Affairs Ethan Lane said in a news release.
“However, simply put, Sen. Grassley’s bill misses the mark. The industry – from leading livestock economists to NCBA state affiliates – agrees that any legislative solution to increased price discovery must account for the unique dynamics within each geographic region. As we have seen in other sectors, a one-size-fits-all government mandate rarely achieves the intended goal. Per our grassroots policy, NCBA supports a voluntary approach first to increased negotiated trade. If a voluntary approach is unsuccessful, that same policy provides guidance toward a legislative solution that more closely resembles Sen. Fischer’s Cattle Market Transparency Act. We will continue to work toward a more level playing field for producers, and we invite Sen. Grassley to join the majority of stakeholders in reaching a collaborative solution.”
NCBA affiliates, though, have backed these cattle marketing bills. The Iowa Cattlemen’s Association immediately announced its support for the Grassley-Tester bill, calling it “a step in the right direction.”
“The Iowa Cattlemen’s Association is pleased to support the reintroduction of the legislation that sparked discussion on cattle market reform in 2020: 50/14. Our producer members have continually expressed that all participants in the fed cattle market share responsibility in providing price discovery and transparency,” says Matt Deppe, CEO of the Iowa Cattlemen’s Association.
R-CALF USA CEO Bill Bullard called on Congress to act swiftly and adopt the legislation to preserve the cattle industry’s most important price discovery market.
“Though alternative solutions to the ever-thinning cash market have been offered, none will be as effective as this new bill; nor can any of the alternatives be implemented in time to reverse the catastrophic disconnect between cattle prices and beef prices that has persisted for the past six years,” Bullard said. “Congress must not wait any longer to enact this important legislation as the chronically depressed fed cattle prices cannot sustain the critical mass of independent cattle feeders necessary to sustain a robustly competitive market for America’s cow/calf producers, backgrounders and stockers.”
DTN Ag Policy Editor Chris Clayton contributed to this report.
Jerry Hagstrom can be reached at email@example.com
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