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GIPSA Proposal an Example of Flawed Regulation

Cindy Zimmerman

USDA’s proposed Grain Inspection, Packers and Stockyard’s Administration (GIPSA) proposal was one example of “How A Broken Process Leads To Flawed Regulations” at a House Committee hearing today, and the committee chairman apparently thinks its a good one.

“GIPSA’s proposed rule change under the Packers and Stockyards Act is a blatant attempt to regulate livestock marketing practices that could literally dismantle the food production and supply markets as we know them,” said House Oversight and Government Reform Committee Chairman Darrell Issa (R-CA). “This would mean higher prices and fewer options for consumers, as well as impacts on food producers and firms at every point in the supply chain. GIPSA’s rule was pursued with a woefully inadequate economic impact analysis. Today’s hearing has called attention to this key issue and points out the price paid by producers, distributors and consumers.”

Testimony on how the GIPSA rule if implemented would impact the livestock industry was given to the committee by Robbie LeValley, Colorado cattle producer and part-owner of a small business that sells specialty beef directly to consumers. “Value-based marketing has given our family business the opportunity to compete for market share at the highest level,” she said in her testimony. “We do not need big government setting up shop on our farms and ranches. Government intrusion into the private marketplace is not the answer.”

Listen to Robbie’s testimony here: Robbie LeValley Testimony on GIPSA

In case you are not worried about government over-regulation, here is a scary statistic from the committee hearing description:

Employment at regulatory agencies has climbed 13 percent since President Obama took office, and the number of staff working on regulatory matters is on schedule to increase at a rate of 10,000 new regulatory employees per year in 2011 and 2012.

Yikes!

Audio, GIPSA, NCBA