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FARM & RANCH
THE NORTH PLATTE TELEGRAPH
AUGUST 2020
Cattlemen await investigation after USDA report
Department of Justice to look into packer business practices
different platforms to en- courage more participation in the cash trade. One part of the report was unexpected. USDA talked about allocating resourc- es to small meat processors to expand their operations or build new regional plants where processing capacity is lacking. “I was pretty excited to see that particular suggestion in the report,” Kohls said. Now she’s hoping the jus- tice department can take a deeper look at business prac- tices. Pricing has long been a source of angst between packers and producers, Kohls said. The frustration elevated due to the mar- ket response to COVID-19 and caused Nebraska Cattlemen’s Association
U.S. Department of Justice and asked them to look into the situation as well. While USDA found no vi- olations under the Packers and Stockyards Act, Kohls took interest in the recom- mendations USDA made on future policy and regulation. Some recommenda- tions include amending the Livestock Marketing Reports and Mandatory Price Reports. She said the goal would be to reduce non-reporting and increase people’s confidence in the re- ported data, to make sure it’s all-inclusive and leads to “more robust price discov- ery.” That’s a conversation the beef industry has been hav- ing leading up to the recent National Cattlemen’s Beef Association convention in Denver. Other suggestions in the report deal with using
transparency for all market participants. One group that wasn’t sur- prised by the findings is the Nebraska Cattlemen’s Association. The group says the report was intended to look into only the spread be- tween boxed beef and cattle prices. “The USDA was act- ing within the scope of the Packers and Stockyards Act,” Nebraska Cattlemen’s Government Relations Director Ashley Kohls said. “Not everyone involved in the industry took the report in that context. The agency never looked into any poten- tial antitrust issues.” Kohls said it’s impor- tant to remember that the USDA doesn’t have subpoe- na authority and can’t go to packers and demand impor- tant information. That’s why the group sent a letter to the
ers. While the report didn’t directly deal with price ma- nipulation, Nebraska Sen. Deb Fischer said the report did confirm that changes are needed in the industry. “I appreciate the USDA’s work on the investigation,” she said in a statement. “Their analysis of what oc- curred after these two events underscores the im- mediate need for reforms to strengthen the cattle indus- try. The report confirms our serious misgivings about the many factors working to de- stabilize the marketplace.” Fischer said she will continue to work on legis- lation in the Senate aimed at providing equity and
By CHAD SMITH Midwest Messenger The U.S. Department of Agriculture wrapped up its months-long look into the spread between boxed beef and cattle prices last month. Calls for an investigation into the topic picked up mo- mentum last year after a fire at the beef packing plant in Holcomb, Kansas. That momentum increased dur- ing the price disruptions that happened as COVID-19 gained steam this year. Some segments of the cattle industry were disap- pointed the USDA report didn’t address any potential market misconduct by pack-
Please see REPORT, Page F4
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