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GIPSA rule in spotlight at Senate hearing

A good portion of Tuesday’s Senate Ag Committee hearing on the state of the livestock industry focused on the proposed GIPSA rule on livestock marketing. 

Kansas Senator and ranking member Pat Roberts argued that the USDA has exceeded its grant of authority from Congress. 

“During the last farm bill, we had a very strong, spirited debate on many of the exact proposals that are included in the proposed rule—and we rejected them all during that farm bill debate—in some cases, by very substantial vote margins,” Roberts said. “So much for congressional intent.”

On the other hand, pork producer Dennis Jones of Bath, South Dakota, talked about the urgency to implement the rule because of what Jones says is increasing concentration and declining competition in livestock markets.

“The GIPSA rule will help ensure transparency, protection and bargaining rights for producers,” Jones said. “This will help restore at least a degree of competition in agricultural markets.”

Jones, who is also a member of the South Dakota Farmers Union, cites the lack of market power for fewer livestock farmers and ranchers.

U.S. Premium Beef CEO Steve Hunt fears that implementing the rule could result in packers being sued if negotiations fail between buyer and seller.

“The increased threat of frivolous lawsuits that this proposed rule will create is a risk no business can withstand,” Hunt said.

Hunt predicts that the rule will actually burden smaller producers, who Hunt says currently enjoy the highest value-based premiums per head.

Brownfield’s Tom Steever contributed to this report.

AUDIO: Excerpt from hearing–Kansas Senator Pat Roberts (4 min MP3)

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