News

Farm Bureau report examines cattle market issues and possible solutions

A new American Farm Bureau report examines extreme volatility in cattle markets and offers some possible solutions.

Spokesman Scott Bennett says a Farm Bureau cattle market working group looked at several issues, including the low percentage of negotiated cash trade.

“The working group discussed a “triggered”-style mandatory minimum pricing that would be set on a region-by-region basis,” Bennett says. “Various and fluctuating levels would be determined regionally.”

Bennett says the group did not address packer concentration specifically but does recommend strengthening USDA-GIPSA’s ability to enforce market rules, “so that GIPSA remains strong, and the ability to keep markets there for our smaller producers is valuable.”

The report also recommends that existing risk management tools, such as Livestock Risk Protection insurance, be adjusted to be more affordable for smaller producers.