Category Archives: GIPSA

Three Weeks Until GIPSA Comment Deadline

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Livestock producers – and anyone in the meat industry, including those who eat it – have just three weeks left to make comments on the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule designed to “provide significant new protections for producers against unfair, fraudulent or retaliatory practices,” according to USDA.

As of right now, nearly 13,800 comments have been received and posted by the Federal Register on the topic. The deadline for comments is November 22.

I read a random sampling of about 100 of the comments and was really disappointed by the fact that they were obviously generic letters that were submitted by various individuals, either for or against the proposal. I got very bored reading the same letter with different names. In fact, of the 100 comments I looked at, 97 of them were one of the same three letters!

cattlemen temple grandinA notable exception was a letter from Colorado State University professor and animal welfare expert Temple Grandin, who sent in a comment earlier last month, expressing concern that the proposed rule would “subject old breeding animals to additional stressful long distance transport.”

“As a scientist who has dedicated her life to improving livestock welfare, I am extremely alarmed that although this rule is concerned with marketing and competition, the department ultimately responsible for it – USDA – is also charged with enforcing the Humane Slaughter Act and apparently has paid so little attention to the animal welfare implications of this proposal,” Grandin said in her letter.

Grandin’s comments were original, personal and well stated. It’s important for those who would be affected by this rule to do their own research and determine how they personally feel about the proposal and how it would impact them. A form letter is great for quantity, but if I were the people reviewing the comments, I would be looking for quality, passion and real information. Like voting, this is an opportunity to have your voice heard, but in a much more personal way. The comment system was developed so that people who are the target of some new bureaucratic regulation can tell the people in Washington what it’s like in the real world.

This rule will have a profound impact on the future of the livestock industry, including poultry, hog and cattle producers. So, take 15 minutes and write something personal and don’t just take the easy way out and repeat some generic comments. Your future is worth at least that much. You can submit comments directly on-line here.

Vilsack Defends GIPSA on AgriTalk

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Agriculture Secretary Tom Vilsack defended the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule during a segment on Agri-Talk yesterday, after an economic study was released showing that implementing the rule as proposed would cost 104,000 jobs and $14 billion to the economy.

Vilsack says it is “unfair and inaccurate” for livestock and meat groups to say that no economic analysis has been done by USDA regarding the rule. “We are required … to assess the potential costs and benefits of regulatory action,” said Vilsack. “We looked at the impact of this proposal on small entities, we analyzed effective alternatives that minimize the impact and we made this analysis available for public comment.”

Vilsack says the analysis is available on pages 35345-35349 of the Federal Register where the rule was first published on June 22, 2010. If you check it out, you will find that it says “a summary cost-benefit analysis is presented.” However, not being well versed in the language of bureaucrats, I couldn’t figure out exactly what it says. It does refer to some of the costs that producers and suppliers might have to incur under the rule, but I think the difference here is that the Dunham study focuses more broadly on the costs to the economy as a whole in terms of employment and GDP. There does not seem to be any such broad economic analysis in the Federal Register.

Vilsack was on Agri-Talk yesterday to discuss his renewable fuels initiatives announcement, so the GIPSA comments were secondary. It seems to be the most the secretary has said in regard to the rule since it was released. Listen to it here. Vilsack Discusses GIPSA on AgriTalk

National Cattlemen’s Beef Association president Steve Foglesong will be on AgriTalk Monday to discuss the proposed rule, which NCBA fears will have unintended consequences and result in harming cattle producers. Public comment is being accepted on the rule through November 22.

New Study Shows GIPSA Rule Would Cost Jobs

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An economic impact study conducted by John Dunham and Associates concludes that the administration’s proposed rule on livestock marketing could leave approximately 104,000 Americans without jobs and a resulting $14 billion reduction in the National Gross Domestic Product (GDP). USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) proposed the rule on June 21, 2010 and it is currently in the comment period, which will end on November 22.

“As an economist who makes his living studying and modeling the economic impact of government regulations on businesses and industries, I have seen firsthand the unintended consequences of misguided policy proposals like the one proposed by USDA,” noted John Dunham, president of John Dunham and Associates, who conducted the study. “It is noteworthy that USDA says this proposal will revitalize rural America, yet my analysis shows it will actually cause substantial job losses.”

Listen to John Dunham explain the study and results here: John Dunham on GIPSA Rule Economic Study

National Cattlemen’s Beef Association President (NCBA) Steve Foglesong said they believe the rule goes beyond the intent of Congress and serves as another example of government overreach into private business. He says the report shows the economic devastation that will likely result from implementing this regulation.

“I am tired of hearing this Administration talk about job creation when their efforts seem to be more focused on job destruction,” said Foglesong. “Enough is enough. Congress did not direct USDA to write a rule that would take away the rights of cattle producers to be innovative and creative by embarking on contract agreements for premium, consumer-demanded beef. The goal of cattle producers is to provide the very best and safest product possible, while sustaining our family owned operations for future generations. I wish the administration would help us accomplish these goals and not throw them down the drain along with 104,000 jobs.”

The study found that retail meat prices would go up 3.33 percent at a national level, which would result in a 1.68 percent decrease in consumer demand. Foglesong said family farms and ranchers would also witness a reduction in beef demand and profitability. He said it is unfortunate that this study was even conducted but USDA left no choice. USDA did not conduct a comprehensive economic analysis and has indicated to 115 members of Congress calling for an economic study that one will not be conducted.

The study, commissioned by the American Meat Institute, is available online in an interactive format that aggregates economic impact on national, state and congressional district levels. It can be found at MeatFuelsAmerica.com/GIPSA. More information on how the rule may affect cattle producers can be found on the NCBA website.

Ag Law Center Offers GIPSA Webinar

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ag lawA webinar on the proposed GIPSA rule was offered this week by the National Agricultural Law Center (NALC) and is still available on line for those who are interested.

The webinar is one of several events the center has conducted for the industry to understand the rule, including a series of regional workshops in Arkansas. The purpose was to provide “information only” for livestock producers and others in the industry who would be affected by the proposed rule.

They provide a pretty detailed explanation of how and why the rule was developed, how and why to make comments, and a real in-depth look at what the rule actually says. The details of the proposed rule are presented by NALC staff attorney Beth Rumley and it’s definitely worth a listen. If you want to skip ahead to that, it starts about 35 minutes in to the webinar.

All livestock producers – poultry, pork and cattle – are strongly encouraged to find out how this proposed rule will impact them and provide comments to USDA before the comment deadline coming up on November 22. As of this week, over 11,000 comments have been received, according to NALC. That’s about twice what it was just three weeks ago, so with another five weeks of comment period time to go, lots more are expected. USDA is required to read and consider ALL comments that are received – so your comments are as important as your vote in an election, if not more so. The easiest way to make comments is by email at comments.gipsa@usda.gov.

USDA Gets Input On Proposed GIPSA Rule From Congress

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It looks like the Obama Administration via USDA is getting some pressure to look into the effect of the proposed GIPSA rule according to a release from the NCBA. You can download the letter here (pdf). You can learn more about this issue by reading our previous coverage of the issue, including interviews with this link.

U.S. Department of Agriculture (USDA) Secretary Tom Vilsack received a bipartisan letter today, Oct. 4, 2010, from 115 members of the U.S. House of Representatives calling for a comprehensive economic analysis of a propose rule on livestock and poultry marketing under the Packers and Stockyards Act. The proposed rule, released by USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) in June, was in response to a request made by Congress. However, many elected leaders note that the rule goes above and beyond the intent of Congress.

“In the 2008 Farm Bill, Congress directed the Department (USDA) to promulgate a discrete set of regulations under the Packers and Stockyards Act. However, in doing so, GIPSA also included additional proposed regulations that greatly exceed the mandate of the Farm Bill,” the House members penned. “Such a broad rule that extends so far beyond Congress’ direction in the Farm Bill and that would precipitate major changes in livestock and poultry marketing requires a vigorous economic analysis. The analysis contained in the proposed rule fails to demonstrate the need for the rule, assess the impact of its implementation on the marketplace, or establish how the implementation of the rule would address the demonstrated need.”

The letter was led by House Agriculture Committee Chairman Collin Peterson (D-Minn.); Ranking Member Frank Lucas (R-Okla.), Livestock Subcommittee Chairman David Scott (D-Ga.) and Livestock Subcommittee Ranking Member Randy Neugebauer (R-Texas). National Cattlemen’s Beef Association President Steve Foglesong said the 115 Congressmen and women that signed the letter should be given credit for standing up for U.S. farmers and ranchers and all of rural America.

GIPSA Rule Topic at Legislative Conference

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The proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule was a big topic of discussion at last week’s National Cattlemen’s Beef Association (NCBA) Legislative Conference in Washington, DC.

Andy Vance with Buckeye Ag Radio has some great coverage from the event, including an interview with USDA chief economist Joe Glauber about the proposed rule. Secretary Vilsack continued to say it was not appropriate for him to comment on the rule. Vilsack has basically made no comment about the rule since it was released in June and he was quoted in the official release saying, “This proposed rule will help ensure a level playing field for producers by providing additional protections against unfair practices and addressing new market conditions not covered by existing rules.”

In Andy’s interview, Dr. Glauber seems to distance USDA “the department” from “the agency” GIPSA. “GIPSA has put out a proposed rule. We have some responsibilities within the department to review rules and so we had looked at early versions of the proposed rule that went out,” says Glauber. “The agency will be reviewing all the comments. We will be looking to see how the agency addresses the comments in terms of the costs and benefits of the rule.”

Glauber had no real direct answers to Andy’s questions about the lack of an economic impact study on the proposed rule and the potential for unintended consequences. He agrees that alternative marketing arrangements have been beneficial for many producers and he agrees that “from an economist’s perspective” the various livestock segments – beef, pork and poultry – are very different in terms of production and marketing. Dr. Glauber said they were glad to hear from the cattlemen who came to Washington last week and encouraged them to make comments about how the proposed rule would affect them.

Y’all really should listen to this interview – it’s posted below. Thanks, Andy! Andy also has good interviews with Mike Engler of Cactus Feeders and Nebraska Cattlemen’s president Bill Rishel.

Andy Vance Interview with USDA's Joe Glauber

Concerns With Proposed GIPSA Rule

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During the recent USDA/DOJ public workshop on competition in the livestock industry I spoke with Dr. Stephen Koontz, Associate Professor, Colorado State University. He has a degree in agricultural economics from University of Illinois.

Proposed new rules from the Grain Inspection, Packers and Stockyards Administration (GIPSA) was the main topic of conversation and Dr. Koontz has some concerns. He says these rules are an attempt to clarify vague language in the law that has been troubling, especially from a legal standpoint. However, when you look at the proposal he says it not only covers production contracts for the poultry and pork sectors but beef as well. It was disappointing to him to see the cattle industry “lumped in with everybody else.” This is because the cattle industry is very different than the other industries and in fact, so is the pork industry. To just treat them all as one is very troubling he says. Another thing that bothers him is how the proposed rules treat production contracts. He says that there is good research showing the benefit of these contracts to producers and consumers and the proposed rules “treat them in a very heavy handed way.” The rule basically says that if there is any preferential pricing in a contract that it has to be documented and justified. He says that opens the packing industry to the potential of having to explain every premium and discount and then it opens them up to legal action. It adds costs and risk which ultimately will be passed along to the cow/calf producer and then the consumer.

His take on the proposed rule is summed up by a friend of his at Oklahoma State University who says, “If you look closely at the rule it’s the simple, easy to understand, wrong answer.” He says it’s being pitched as “big vs. little” but he sees it more as targeting the good producer who is innovative, who is trying to do something different and now whatever they are trying to do has to become public knowledge and that “stomps pretty hard on creativity and innovation.” Interview With Dr. Stephen Koontz

Pork and Beef Panels On GIPSA

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Since the livestock industry is so important to our country as well as just about every other sector of agriculture you can’t get enough on a subject that has major implications for its future. That would be the proposed rule by the Grain Inspection, Packers and Stockyards Administration (GIPSA). You can follow back through our posts on this topic using the GIPSA Category which is in the left side drop down menu.

I still have some audio to share with you from the recent USDA/DOJ public workshop in Ft. Collins, CO. In this post you can listen to and download audio from the two panels (beef and pork) conducted the evening before by the National Cattlemen’s Beef Association and the National Pork Producers Council. I streamed it live at the time but also recorded it for you.

The pork panel included:

Sam Carney, President NPPC, Iowa pork producer
Mark Legan, Indiana pork farmer
Brent Sandidge, Manager of Ham Hill Farms, Missouri
Steve Meyer, President, Paragon Economics

You can listen to pork panel here: GIPSA Pork Panel

The beef panel included:

James Herring, President/CEO, Friona Industries, Texas
Bill Rishel, Rishel Angus and currently President, Nebraska Cattlemen’s Association
Jerry Bohn, General Manager, Pratt Feeders, Kansas
Allie Devine, Vice President/General Counsel, Kansas Livestock Association
Dr. Stephen Koontz, Associate Professor, Colorado State University

You can listen to beef panel here: GIPSA Beef Panel

GIPSA Proposed Rule Video Interviews

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USDAThe most recent USDA/DOJ Public Workshop on competition in the livestock industry may be fading from people’s minds but we’re going to keep the issues discussed and presented alive, most importantly the proposed GIPSA rule that everyone seems to agree would have a profound impact on the industry. What kind of impact though is a source of significant disagreement.

You can watch a series of videos produced by the folks at American Angus Association that might help better educate you on this issue and help form your opinion of what needs to be done. Remember that we’re in a public comment period on this until the latter part of November, so please feel free to leave your comments directly via the web.

GIPSA interviews

Bill Rishel, an Angus seedstock producer from Nebraska, discusses potential impacts of the proposed GIPSA rule change.
Bill Bullard of R-CALF USA discusses potential impacts of the proposed GIPSA rules on the US cattle industry.
Colin Woodall of NCBA discusses potential impacts of the proposed GIPSA rule.
Allan Sents of McPherson County Feeders, Marquette, Kan., discusses potential impacts of the proposed GIPSA rule on the cattle business.
Jerry Bohn of Pratt Feeders discusses potential impacts of the proposed GIPSA rule.

Here’s an overview Angus Report with perspectives on both sides of the proposed GIPSA rule change. For more information, visit www.angus.org. I’ll be doing periodic posts during the public comment period for this issue in coming weeks that will include more interviews.

R-CALF President Says Livestock Pub Editors Should be Fired

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R-CALF USA is not very happy with the way “mainstream” livestock media editorialized about the DOJ/USDA workshop in Colorado last week that was primarily about the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule. In fact, if it were up to the president of the organization, he would “Fire Them All.” I guess hangin’s too good for ‘em!

The “Op-Ed by R-CALF USA President Max Thornsberry, DVM, MBA” directly targets the editors of BEEF magazine, Drovers and Beef Today for what he calls “disparaging and immensely disrespectful” editorials they wrote about the proposed rule and the workshop, prior to it being held last Friday. He charges the editors with attempting “to discourage attendance or to draw attention away from the joint hearing on competition in animal agriculture.”

Dr. Thornsberry is very harsh toward the media in general, saying the beef industry publications just “want to appeal to the big, to those that represent the powerful.” He uses the word “disrespect” repeatedly, yet he clearly has no respect for the very competitive nature of the media business. “I think to be an editor of one of these magazines it should be a requirement to have to feed two pens of fat cattle a year and to independently market them,” he writes. “How can they speak with such contempt to those of us who make a living in the beef production sector, without any real knowledge of how the business operates within the United States today? It would be like me being the editor of Cosmopolitan.”

Maybe you should try that before you criticize, Dr. T. You have no idea what it is like to compete in the media world, which has its own version of packers in an industry that is progressively consolidating on all sides. And when it comes to ag media, you’d probably be surprised at how many of the reporters and editors have marketed their own cattle, either now or in a past life. They probably know more about the industry from more angles than the average cattle producer because that is their job.

Incidentally, I thought the editorials were way more fair than some of the GIPSA stories that we did here on Agwired. Sure, we did an interview with R-CALF to let them explain their position regarding the GIPSA rule, we did have live coverage of the R-CALF rally the night before the hearing, and we did live webcast the entire event so that anyone who wanted to listen could hear all viewpoints. You can thank the National Cattlemen’s Beef Association for all of that because they sponsored our coverage and contracted us to do a series of interviews with producers who are concerned about the proposed rule. Thanks to NCBA we were actually able to bring the workshop live with comments from both sides of the issue to over 800 people who could not attend, and audio from some of the panels is now available for listen or download. Thousands of other people have seen our photos, listened to our interviews and interacted with us on this issue. We would not have been able to do without NCBA’s support. Like the rest of the ag media, this website isn’t a hobby farm – we need to make money in order to stay in business.

Sorry, you can’t fire us, or hang us either – you can’t even sue us for not being fair. But, maybe a little respect would be in order.

USDA/DOJ Public Workshop Panels

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Friday’s joint USDA/DOJ public workshop was a marathon with potentially over 2,000 people participating. You can follow some of what happened in my archived CoverItLive stream and the press conference featuring Sec. Vilsack and AG Eric Holder. For those of you who couldn’t attend, couldn’t listen to the live stream or need the audio for your reports or broadcasts I’m posting the 4 main panel sessions for you. I’m including a list of the participants of each too.

Keynote Roundtable Discussion Keynote Roundtable Discussion

Eric Holder, Attorney General, U.S. Department of Justice
Tom Vilsack, Secretary of Agriculture, U.S. Department of Agriculture
Christine Varney, Assistant Attorney General, Antitrust Division, U.S. Department of Justice
Betsy Markey, Congresswoman, U.S. House of Representatives
Bill Ritter, Jr., Governor, state of Colorado
John Suthers, Attorney General, state of Colorado
Steve Bullock, Attorney General, state of Montana
John Stulp, Commissioner of Agriculture, state of Colorado

Producer/Feeder Presentation of Issues Producer/Feeder Presentation

This panel will be an opportunity to hear first-hand from producers or feeders as they share their experiences and perspectives on the industry.

Moderators:
Tom Vilsack, Secretary of Agriculture, U.S. Department of Agriculture
Christine Varney, Assistant Attorney General, Antitrust Division, U.S. Department of Justice

Panelists:
Mike Harper, sheep producer, Eaton, Colorado
Dr. Taylor Haynes, rancher, Cheyenne, Wyoming
Robbie LeValley, rancher, Hotchkiss, Colorado
Harry Livermont, rancher, Interior, South Dakota
Chris Petersen, hog farmer, Clear Lake, Iowa
Allen Sents, feedlot owner, Marquette, Kansas
Alden Zuhlke, rancher, Brunswick, Nebraska

Panel I – Trends in the Livestock Industry Trends In Livestock Industry

This panel will discuss trends in the livestock industry, including issues associated with contracting, price transparency and the effects of concentration.

Moderator:
Philip Weiser, Deputy Assistant Attorney General, Antitrust Division, U.S. Department of Justice

Panelists:
Jerry Bohn, general manager, Pratt Feeders, Pratt, Kansas
Libby Cook, co-founder, Wild Oats Markets and Sunflower Farmers Markets
Mark Greenwood, vice president, commercial lending, AgStar Financial Services
Bill Heffernan, professor emeritus of rural sociology, University of Missouri
Mark Lauritsen, international vice president, director food processing, packing and manufacturing division, United Food and Commercial Workers International Union
Gilles Stockton, rancher, Range, Montana
Armando Valdez, rancher, La Jara, Colorado
Clem Ward, professor and extension economist, Oklahoma State University

Panel II – Market Structure Market Structure

This panel will include a variety of market participants who will discuss market structure issues in the livestock industry.

Moderator:
James MacDonald, Chief, Agricultural Structure and Productivity Branch, Economic Research Service, U.S. Department of Agriculture

Panelists:
Bruce Cobb, general manager, Consolidated Beef Producers
David Domina, attorney, Domina Law Group
Mark Dopp, attorney, American Meat Institute
James Herring, president and chief executive officer, Friona Industries
Robert Mack, cattle producer/feeder, Watertown, South Dakota
Bob Miller, rancher, Okmulgee, Oklahoma
William Rishel, Richel Angus, Platt, Nebraska.
Charlie Rogers, owner/general manager, Clovis Livestock Auction

USDA/DOJ Livestock Competition Workshop and Forums Photo Album

Live Coverage – USDA/DOJ Public Workshop

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The player below will let you see my CoverItLive stream from the workshop. Thanks to the hundreds who logged in and especially those who commented. I was also live tweeting today using the #USDADOJ hashtag.


USDA/DOJ Livestock Competition Workshop and Forums Photo Album

USDA/DOJ Public Workshop Press Conference

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Sec. of Agriculture Tom Vilsack and Attorney General Eric Holder held a press conference this morning during a break in the USDA/DOJ public workshop in Ft. Collins, CO. I’m posting the full audio from it here for you. I’ve got lots of audio and story ideas for after today. I think getting photos, audio and live streaming to the over 300 who have been listening in so far has been priority.

I asked Sec. Vilsack if USDA or anyone has done any research on the impact or consequences of the proposed GIPSA rule. He gave a round about answer that made it apparent that none has. He pointed to the thousands of comments that have come in and are still coming in as providing lots of input on what people think will happen.

USDA/DOJ Public Workshop Press Conf

USDA/DOJ Livestock Competition Workshop and Forums Photo Album

Opening Remarks At GIPSA Rule Forum

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I’m betting that by the end of today’s USDA/DOJ public workshop (it is today) we’re going to know a lot more about the proposed GIPSA rule and what it means for everyone in the livestock industry. I’ve got quite a bit of information from the evening’s forums that I’ll post when time allows in coming days and weeks.

To get us started I thought I’d let you listen to the opening remarks from the leadership of the National Cattlemen’s Beef Association and National Pork Producers Council at their forum on the GIPSA rule. They’re introduced by emcee Kevin Ochsner, NCBA’s Cattlemen To Cattlemen. Also in this audio clip is Allie Devine, VP and General Counsel, Kansas Livestock Association, who provides a backgrounder on the proposed GIPSA rule: NCBA/NPPC GIPSA Panel Open

USDA/DOJ Livestock Competition Workshop and Forums Photo Album

Live Audio From R-Calf GIPSA Forum

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Now I’m attending the R-Calf GIPSA forum. Got here a little late. They’ve got an overflow crowd. There are several speakers to go. The language being used in the presentations is very different. Lots of references to factory farms and corporate control. No definition given though.

I tried to live stream the audio but I couldn’t get on the hotel internet access and my Verizon MiFi just didn’t have enough oomph. I recorded the presentations and hope to post some of them at a later date. I’ll update the photo album with photos from here later.

So, I’ll probably see you from the USDA/DOJ Workshop in the morning.

Live Audio GIPSA Forum With NCBA/NPPC

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I’ve been live streaming the audio from this evening’s forum and press conference on the proposed GIPSA rule. I’ll be posting selected audio and interviews at some later time since I have another forum to try to attend this evening and then an all day workshop tomorrow. I hope all you who listened got something out of it. It’s always best to hear it “live!”

I’ve got a photo album started from tonight’s activities and will add to it during tomorrow’s workshop: USDA/DOJ Livestock Competition Workshop and Forums Photo Album

Learning More About GIPSA

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It’s time for some livestock industry forums in Ft. Collins, CO. I’m attending the first one which is the NCBA/NPPC GIPSA Rule Press Briefing. We’re in the Hilton for this session. I’ll be attending another one later this evening too. It looks like we’ve got people rolling in and the room is set up for a big crowd.

Media are just now checking in. Here’s Melissa Tessitore, executive producer, NCBA’s Cattlemen to Cattlemen, which airs on RFD-TV. She graduated from Colorado State University which is right across the street. Helping Melissa out as videographer is her “old” college professor, Greg Luft, who is still teaching at CSU.

I’ll be live tweeting tonight as much as I can while recording audio, doing interviews and taking photos. Tomorrow at the USDA/DOJ Workshop on the CSU campus I’ll be doing the same starting around 8am mountain.

Some Groups Support GIPSA Rule

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We’ve been hearing a lot from producers and organizations with concerns about the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule, but there are some groups in favor of the rule.

The most vocal is R-CALF USA, led by CEO Bill Bullard, who calls the proposed rule “critical” to help “an industry in crisis.” Bullard contends that the rule is simply designed to address anti-competitive practices by meat packers and that concerns about unintended consequences being made by groups like the National Cattlemen’s Beef Association and the National Pork Producers Council are “scare tactics” initiated by the packers themselves. “The opponents to the rule, primarily the meat packers, are fighting against it as hard as they can and trying to convince producers that they should help the meat packers kill this rule,” Bullard says. He believes that the rule will not result in meat packers abandoning marketing agreements they have made with producers for premium traits. “It is incomprehensible that the packers would forgo what they claim to be a very profitable venture simply because they have to maintain the records to justify it,” said Bullard.

R-CALF is encouraging 25,000 rural Americans to show up at the USDA/DOJ public workshop this Friday in Ft. Collins, CO to show their support for the rule.

Listen to or download Chuck’s interview with Bill here: Bill Bullard Interview

Another group supporting the GIPSA rule is Food & Water Watch, an environmental activist group, which is working with R-CALF on a public forum they are sponsoring the day before the USDA/DOJ public workshop in Ft. Collins. This is the group behind “The Meatrix,” an anti-”factory farming” viral video series produced in 2007 that comes off more than just a little anti-animal agriculture in general. Other groups supporting the rule include the Western Organization of Resource Councils, Rocky Mountain Farmers Union and the Missouri Rural Crisis Center.

I had forgotten just how darn funny and clever the “Meatrix” videos were, even if you don’t agree with the agenda. Watch the original here:

NCBA President Urges Piecemeal Approach To GIPSA Rule

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He’s a western Illinois cattle and hog producer and also has a feed yard. He’s Steve Foglesong, President of the National Cattlemen’s Beef Association. I spoke with Steve today for our series on the proposed GIPSA rule making. The picture is Steve during a press conference at this summer’s Cattle Industry Conference.

He says that when you read the proposed rule the first time it makes you say, “Yeah, that’s really good.” But he goes on to say that when you step back and analyze it you realize how broad it is and that it includes things that beef and pork producers have fought against for years. Then Steve says, “There are some very good pieces that are in this rule. The poultry part is pretty good and there’s some other stuff in there about fairness and things like that but in its entirety this thing because it is so broad and so far reaching is a bad rule because it puts the government in charge of the market place. Let’s take it apart, let’s get rid of this and then bring some pieces of it up one at a time and I think we can deal with some of those and do all the producers some good that way.”

Steve also talks about the unintended consequences of the rule in its proposed form. One of them is his concern about the packers telling producers that they won’t accept the liability called for in the proposed rule when it comes to special pricing contracts. “They’ll just level the playing field and pay a standard price for all cattle irrespective of quality. Ultimately it’s going to be consumers that will suffer because consumers have driven us into this quality situation.”

Listen to my interview with Steve here: Steve Foglesong Interview

The National Cattlemen’s Beef Association and the National Pork Producers Association are working to inform producers about the potential consequences of the proposed rule and encouraging them to make comments.

NPPC Calls Proposed GIPSA Rule a “Disaster”

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Go to the National Pork Producers Council (NPPC) homepage and you will see a prominent link to information about the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule with the bold headline “Proposed GIPSA Rule a Disaster.”

Strong words from the organization, but that is how many producers feel about the rule that they believe will limit their ability to negotiate contracts, according to Indiana producer Mark Legan, chairman of NPPC’s Competitive Markets Committee. “We would like to see GIPSA withdraw the rule and would like to see them rewrite it and basically stick to the points that they were charged with in the last Farm Bill,” said Mark during an interview today. “We feel this ruling goes way beyond what Congress asked GIPSA to do and, in fact, GIPSA’s included pieces in the ruling that Congress voted down during debate on the last Farm Bill.”

Mark’s personal opinion is that markets work when given the chance and that government interference in the market will hurt the U.S. livestock industry, especially when it comes to competing on a global scale. “Today we’re exporting one out of every four or five pigs that’s produced, so we really are in a global marketplace,” he said.

“My concern about the government requiring everyone to get the same price is that everyone’s in a different situation and if I make a change in my genetics to produce a product that a certain packer wants, I should be rewarded for that,” Mark says. “My problem is if everyone’s paid the same, then usually the price goes to the lowest common denominator.”

Listen to or download Chuck’s interview with Mark here: Mark Legan Interview

NPPC and the National Cattlemen’s Beef Association are working to inform producers about the potential consequences of the proposed rule and encouraging them to make comments. The two groups will be holding a joint event for members the day before the USDA/DOJ public workshop on competition in the livestock industry in Ft. Collins, Colorado on August 27.