Contract Library could help boost producers’ market confidence
An ag economist says the proposed Cattle Contract Library could help enhance cattle producers’ confidence in the market.
Texas A&M University’s David Anderson says it provides producers more information about contract diversity. “How widespread are different types of contracts that show up in this idea of a library,” he says. “I think that is important. But I think that has the potential to add transparency to the marketplace, which I think is a positive.”
He tells Brownfield the proposed bill also has some changes to reporting requirements for cattle prices and weights, adding even more value to the data producers can see. “We get a little more market transparency,” he says. “Maybe we get some prices reported in a way that’s easier to interpret or add some more clarity to what’s there.”
Anderson says having these additional pieces of information available to the industry help cattle markets increase competition and fundamentally work better.
AUDIO: David Anderson, Texas A&M University