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.