Western South Dakota's Only Ranch Station

Bill would reverse 102 year-old regulation, could benefit livestock auction markets

WASHINGTON, D.C. – Efforts to remove a regulatory barrier and allow livestock auction market owners to own or invest in small, regional processing plants continue in the new Congress.

The Administration, Congress, and the livestock industry agree there is a need for increased packer competition and additional processing capacity. Currently, livestock auctions owners are not able to own, invest, or participate in the operation of a packing plant or meat marketing business due to dated Packers and Stockyards Act restriction.

This prohibition falls under a 102-year-old law and predates the current, transparent method of selling livestock at an open auction to the highest bidder. The A-PLUS Act is essential in removing this barrier to cattle industry investment in the packing sector. The bill would allow livestock auction owners to own or invest in cattle and hog packers smaller than the current 10 largest packers.

LMA President and owner of Kentucky-Tennessee Livestock Market Mark Barnett said, “Livestock auction markets, like mine, are in the competition business. Allowing livestock auction owners to invest in small and regional packers will create competition against large packing entities that already exist. The A-PLUS Act could spur additional capacity and especially additional packers to increase competition and improve profitability for producers.”

He added, “Allowing livestock auction owners to invest in small and regional packers will create competition against large packing entities that already exist.”

Congressmen Mark Alford (R-Mo.), Jimmy Panetta (D-Calif.), and Dusty Johnson (R-SD) introduced the Amplifying Processing of Livestock in the United States (A-PLUS) Act.

See KBHB Radio August 22, 2022 story.

 

People are also reading...

Weather

loader-image
Rapid City, US
12:56 am, July 14, 2024
temperature icon 68°F
clear sky
Humidity 67 %
Pressure 1014 mb
Wind 20 mph
Wind Gust: 31 mph
Visibility: 0 km
Sunrise: 5:23 am
Sunset: 8:34 pm
Kierra Killinger

Market News

Share via
Copy link