Home 5 Ag Stories Ag groups express mixed feelings about GIPSA rule

Ag groups express mixed feelings about GIPSA rule

by Ben Nuelle 

LISTEN: world-of-agriculture-10-19-16

There is a lot of mixed responses to the Department of Agriculture’s Grain Inspection, Packers and Stockyards Administration Act, or GIPSA rule announcement.

USDA plans to publish an interim final rule and two proposed rules this year, amid years of debate regarding the GIPSA rule.

Senator Chuck Grassley says these rules should ensure Iowa cattle producers get a fairer price in the marketplace.

“We’ve already seen the poultry and swine industry to a largely cash trading market to an almost exclusively contract grower-based system. Our cattle producers her in Iowa are worried the market is headed in the same direction. Farmers correctly expect the marketplace to be fair and functioning.”

Grassley adds many producers believe packers are manipulating prices.

“There are also complaints that packers are intentionally skirting the intent of mandatory price reporting with times during the week they are willing to purchase cattle.”

At his weekly teleconference, when asked about government regulation in the marketplace, Grassley said this.

“I don’t think these GIPSA rule could hold a candle to what wrong with Waters of the U.S. as an example and its effect on agriculture.”

However, the National Cattlemen’s Beef Association called on USDA to withdraw the draft. NCBA President Tracy Brunner says the USDA rule would “limit producer marketing options, compel buyers to offer lower bids across the board to avoid the appearance of preference. Brunner also says it would create an environment ripe for baseless legal challenge.

National Farmers Union and U.S. Cattlemen’s Association support the GIPSA rule because they say it helps smaller farmers.

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