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·         New report shows legislative proposals could hurt cattle industry

The North American Meat Institute says a new report finds that government intervention in the cattle industry will cost livestock producers billions of dollars…

 

·         Meat Institute Points to Analysis That Government Interference in Markets Could Cost Cattle Producers Billions of Dollars

… “Thursday the House Agriculture Committee will hold the fourth Congressional hearing this year on beef and cattle markets. It is no surprise that the Texas A&M analysis reflects the expert testimony at each hearing: supply and demand have the most influence on the price of cattle and goods for consumers,” said Meat Institute President and CEO, Julie Anna Potts…

 

 

New report shows legislative proposals could hurt cattle industry

 

By Kellan Heavican, Brownfield

October 6, 2021

 

The North American Meat Institute says a new report finds that government intervention in the cattle industry will cost livestock producers billions of dollars.

 

NAMI says one key finding in the 180-page study shows that mandated minimum negotiated cash trade would have a one-year, negative impact of $2.5 billion and $16 billion over a decade.

 

The report called “The U.S. Beef Supply Chain: Issues and Challenges,” is the result of a collaboration with Texas A&M’s Agricultural and Food Policy Center, national experts and the U.S. Department of Agriculture. It covers meat packing concentration, fed cattle pricing and capacity concerns.

 

The authors of the report say they urge “extreme caution” when considering changes to a system that has “rewarded high-quality beef production” while acknowledging regional differences.

 

Meat Institute President and CEO Julie Anna Potts says...

 

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https://brownfieldagnews.com/news/new-report-shows-legislative-proposals-could-hurt-cattle-industry/

 

 

Meat Institute Points to Analysis That Government Interference in Markets Could Cost Cattle Producers Billions of Dollars

 

Oklahoma Farm Report

06 Oct 2021

 

In response to a bipartisan request from the House Agriculture Committee, Texas A&M University has completed a comprehensive report on the U.S. cattle and beef markets written by leading economists across the country. Among its key findings is that proposals increasing government intervention and mandates will cost livestock producers billions of dollars.

 

“Thursday the House Agriculture Committee will hold the fourth Congressional hearing this year on beef and cattle markets. It is no surprise that the Texas A&M analysis reflects the expert testimony at each hearing: supply and demand have the most influence on the price of cattle and goods for consumers,” said Meat Institute President and CEO, Julie Anna Potts.

 

The analysis is a 180 page book called “The U.S. Beef Supply Chain: Issues and Challenges,” and is the result of a collaboration with Texas A&M’s Agricultural and Food Policy Center, national experts and the U.S. Department of Agriculture.

 

“The Texas A&M book went one step further and examined current legislative proposals and found these proposals’ unintended consequences will harm those they are meant to protect: cattle producers," Potts said. "This book should be required reading for Members of Congress who want to help livestock producers and consumers.”

 

One of the most significant findings was regarding government mandates included in proposed legislation by Members of Congress (called the 50/14 or 30/14 proposals) to require minimum negotiated cash market purchases. Dr. Stephen R. Koontz, Professor in the Department of Agricultural and Resource Economics at Colorado State University found:

 

“The short-term impact for a policy most like that being considered is a $2.5 billion negative impact in the first year and a cumulative negative impact of $16 billion over 10 years, inflated to 2021 dollars. This cost is leveled mainly on cattle producers,” said Koontz. “The 50/14 proposal would have these negative impacts and the 30/14 would have similar negative impacts albeit approximately halved.” (Page 104)

 

Similar to the experts and economists who have testified before Congress, the book’s introduction contains this warning:

 

“In the meantime, we would urge extreme caution in making changes to a system that has grown organically over time to reward high-quality beef production in a way that acknowledges regional differences throughout the country.” (emphasis added) Page ix

 

The book contains the following critical arguments:

 

Regarding Concentration ...

 

Fed Cattle Pricing ...

 

Regarding Price Discovery ...

 

Requiring Minimum Cash Transactions ...

 

Regarding Capacity ...

 

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http://www.oklahomafarmreport.com/wire/news/2021/10/00613_MeatInstituteOnAFPCBookCattlemkts10062021_054304.php