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South Dakota Cattlemen’s President Eric Jennings and VeaBea Thomas and Myron Williams socially distancing while representing SDCA and the SD Beef Industry Council at the NCBA Board of Directors meeting during the NCBA summer business meeting.
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South Dakota Cattlemen’s President Eric Jennings and VeaBea Thomas and Myron Williams socially distancing while representing SDCA and the SD Beef Industry Council at the NCBA Board of Directors meeting during the NCBA summer business meeting.

NCBA passes resolution for voluntary efforts to improve cash price discovery


News Staff - July 30, 2020

AURORA, CO – At the summer business meeting of the National Cattlemen’s Beef Association underway now, in person and online, members spent hours before passing the trade organization’s first step to increase cash trade levels as a means to address growing concerns over a lack of cash price discovery in the industry.

But, it was a compromise between those who were demanding a more immediate change through the regulatory or legislative process and those who considered a voluntary approach with no government interference,  a more realistic bet.

Matt Deppe, CEO of the Iowa Cattlemen’s Association, says through the NCBA’s grassroots process, the members and the organization’s Board of Directors unanimously passed policy that supports voluntary efforts to improve cash fed cattle trade. “Those triggers would include a regular approach on what those levels of price discovery are per region,” he says.  “In terms of negotiated grid type purchases or sales or negotiated cash as well as what levels consistently.”

He tells Brownfield Ag News it wasn’t exactly what they wanted, but it puts a tangible plan in place.  “In the end, we came to a compromise that at least gives us a path forward,” he says. 

Deppe says the working group has until October 1 to determine the triggers.

The resolution that came together after several hours of debate during the NCBA Live Cattle Marketing Committee meeting states "NCBA supports a voluntary approach that:

  1. Increases frequent and transparent negotiated trade to a regionally sufficient level, to achieve robust price discovery determined by NCBA funded and directed research in all major cattle feeding regions and
  2. Includes triggers to be determined by a working group of NCBA producer leaders by October 1, 2020.

Be it further resolved, if the voluntary approach does not achieve robust price discovery as determined by NCBA funded and directed research, and the meet the established triggers that increase frequent and transparent negotiated trade to a regionally sufficient level, and triggers are activated, NCBA will pursue a legislative or regulatory solution.

Be it further resolved, NCBA will support a three year review/sunset provision on any negotiated trade solutions implemented to allow for a thorough cost benefit analysis to be conducted."

If the voluntary approach doesn’t achieve robust price discovery and meet the established triggers that increase frequent and transparent trade to a regionally sufficient level, NCBA will pursue a legislative or regulatory solution.



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