Market News
Animal ag groups to release GIPSA analysis
Four groups representing animal agriculture say they will release an economic analysis of the proposed GIPSA rule at a news conference on November 10th.
The groups involved are the National Pork Producers Council, the National Cattlemen’s Beef Association, the National Turkey Federation and the National Meat Association. The cost-benefit analysis was conducted by Informa Economics.
The news conference will take place at the annual National Association of Farm Broadcasting Convention in Kansas City.
In a recent interview with Brownfield, Gregg Doud, chief economist for NCBA, said he is unable to find any justification for what is being proposed in the GIPSA rule.
“The craziest thing that I see argued is that we have a thinning cash market and that somehow affects prices,” Doud says. “The reality is, the thinnest cash markets that we have in the cattle business are where we have the highest prices today.”
Doud says the rule would “completely change” the risk management practices being used in the cattle industry.
“I think we have a lot of people that are involved in legal aspects and regulatory aspects of this that just, frankly, don’t understand the livestock industry in this country,” he says, “and, from the National Cattlemen’s Beef Association’s perspective, we’re going to fight this thing—because we don’t want government involved in how we do our business.”
The GIPSA rule comment period runs through November 22nd.
Everyone needs to comment on this rule:
http://nppc.org/Consumer_Postcards/default.aspx