Comment period extended for new market competition rule

WASHINGTON, D.C. – The USDA is extending the comment period for its proposed new competition rule under the Packers & Stockyards Act.

Ag Secretary Tom Vilsack says the Fair and Competitive Livestock and Poultry Markets Rule, announced in late June, expands transparency and better protects ranchers and farmers.  The USDA says it also would define unfair practices as conduct that harms market participants and conduct that harms the market.

Specifically, the proposed rule will define the types of conduct and “unfair practices” USDA considers to be prohibited by the Packers and Stockyards Act (PSA).

Justin Tupper, St. Onge, S.D., President of the United States Cattlemen’s Association says it’s important that ranchers engage in the comment process.

“We need to make sure we can have fair, competitive markets,” he said. “We need a referee in the game that does that. Producers need to be submitting comments in support of the rule.”

But a spokesman for the National Cattlemen’s Beef Association (NCBA) says the proposed rule is a bad idea.

Tanner Beymer, Executive Director of Government Affairs at NCBA said, “The proposed rule is a direct attack on producer profitability. There’s going to be reduced access to alternative marketing arrangements, which reward cattle producers for those higher quality grades that they might be achieving,” he says.  “Or branded programs that they’re enrolled in, or origin programs that they’re enrolled in, things that cattle producers have identified that put more money in their pocket.”

He continued, “This rulemaking is part of a much larger series that USDA has been attempting to promulgate in the last 15 years.  If these rules are allowed, it will dramatically change how we market fat cattle. This is a massively impactful rule.”

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Tupper disagrees. “It’s definitely in our best interest to make sure that we know and understand what each and every person is getting in the marketplace.  It should be open, fair and accessible to all.”

Beymer said this isn’t the first time USDA has attempted to implement a rule like this.  In 2010, USDA attempted to promulgate a rule that is similar to this one, according to Beymer.

“At the time we contracted with Informa Economics PLC to analyze that rule and provide their analysis on how much it will cost cattle producers if USDA were to finalize that rule.  And at that time, the estimate was a $16 billion impact over a 10 year period.”  He added, “That was almost 15 years ago. Certainly with inflation and the costs associated with that, it would be substantially higher now.”

National Farmers Union President Rob Larew agrees with Tupper that the proposed rule is good for ranchers and farmers as they continue to face unfair practices at the hands of monopolistic meatpackers.

“USDA’s Fair and Competitive Livestock and Poultry Markets proposed rule would tackle longstanding challenges around interpretations of unfairness and competitive injury for the livestock, meat, and poultry sectors. This move is a big step forward for better enforcement of the Packers and Stockyards Act and towards the goals of our Fairness for Farmers campaign.”

The comment period has been extended by 15 days. The final day to comment is September 11, 2024 and can be submitted anonymously at www.regulations.gov.

Beyers also believes the comment period extension isn’t sufficient.

“Because it has such wide-ranging, wide sweeping impacts potentially on the industry, we need more than just 75 days to be able to put together that industry feedback. We have sent a bi-partisan, bicameral letter with scores of members of Congress asking USDA to extend this comment period by 180 days. We think that will give the industry more than sufficient time to analyze it and to make recommendations to our members.  If USDA is truly interested in receiving comments back from the industry on how those regulated by this rule will be impacted by it, than they need to make sure we have plenty of time to actually understand the rule so we can conduct that analysis.”