Last week USDA hosted agricultural producers from around the country at the White House where the department of agriculture announced several initiatives to promote fair competition in American agriculture and reduce food prices for consumers.
The announcements reflect USDA’s efforts to tackle market concentration, boost price transparency and support small and mid-sized producers. Gilles Stockton, a rancher from Grass Range, Montana, and Director of the Montana Cattlemen’s Association, attended the event and shared his insights in an interview with the Northern Ag Network.
“This is the best and most important news we’ve had in decades,” Stockton said. USDA’s Advanced Notice of Proposed Rulemaking (ANPR) seeks to improve market competition and price discovery in the fat cattle market, by improving the base prices in fed cattle purchasing agreements and addressing concerns about the negative effects of alternative marketing agreements on the spot market.
“We’ve been debating whether captive supplies of fat cattle are a significant issue…well USDA has come down on the side of cattle producers.” Stockton says that USDA is seeking input from producers on the necessary steps which should be taken to enhance competition in fat cattle marketing.
The USDA’s announcement also included efforts to enhance the competitiveness of the meat retail industry. The department published an interim report focusing on beef markets, identifying increasing market concentration and problematic practices by intermediaries that could disadvantage small to mid-sized processors.
Stockton says this is important for cattle producers as well, highlighting the opportunity for local ranchers to market their products through smaller processors. “For people who have been struggling to establish [a market for] a grass fed, organic or local product, this is a big deal for them. If they can get it on a shelf they have a chance to expand that type of market.
USDA has committed 1.2 billion dollars to enable schools and institutions to buy food locally. Stockton emphasized that this is a big win for producers who want to supply local schools with Montana raised beef.
Stockton also recognized the efforts of Andy Green, USDA’s Senior Advisor for Fair and Competitive Markets. “This is his work, this is what he did, I just have to commend him for having fought through the bureaucracy to get these rules and better enforcement of the packers and stockyards act.”
The United States Cattlemen’s Association (USCA) also welcomed the USDA’s efforts. USCA President Justin Tupper commended the department’s investigation into market consolidation and its willingness to engage with producers. “For years, our group has sought avenues to increase price discovery and transparency in fed cattle markets,” Tupper said. “We look forward to submitting comments to further our efforts to foster a fair and competitive market for all cattle producers.”
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Northern Ag Network, USCA
