The Grain Inspection, Packers and Stockyards Administration (GIPSA) proposed rule that was published in June is causing quite a bit of concern among cattle feeders, who would be impacted right along with every other aspect of the meat and poultry industry.

I talked about the issue with Jerry Bohn, general manager of Pratt Feeders in Kansas, who will be taking part in next week’s USDA/DOJ public workshop on competition in the livestock industry in Ft. Collins, CO, where the GIPSA rule will be the main topic of discussion. Jerry will be part of the producer panel during the workshop, as well as a session being held the day before, sponsored by the National Cattlemen’s Beef Association and the National Pork Producers Council.

Jerry says he’s most concerned about the impact of the rule when it comes to alternative marketing arrangements. “The packer-processors will have to justify paying a premium or a discount for every group of cattle that they purchase and if they fail to do that, then there is a threat of litigation,” he explains. While the rule is supposed to help smaller producers, Jerry thinks it will have the opposite effect. “In our case, the small to medium producers are the ones who benefit most from alternative marketing arrangements” getting premiums for certain characteristics. “So, I really believe that the unintended consequence is that the small and medium producers are going to get hurt a lot worse if this law goes through,” Jerry adds, which will ultimately impact those consumers willing to pay a premium price for a consistently higher quality product that may no longer be available.

Another major problem is that it tries to be a “one size fits all” plan. “It’s a very broad-based rule, intended to cover poultry, pork and the beef industry,” says Jerry. “So, consequently we’re trying to take a broad brush, applying rules across all species, and the proposed regulations do address contract agreements between contract growers in the pork and poultry industry that have nothing to do with the beef industry.”

He recommends that everyone in the livestock industry take a very close look at the rule, which he calls “one of the most severe proposed changes to ever affect our industry.” Here is a link to the proposed rule outline and information about providing comments to the rule. The comment period deadline has been extended to November 22.

Listen to or download my complete interview with Jerry here: Jerry Bohn Interview