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Grassley applauds proposed GIPSA rules

Iowa U.S. Senator Chuck Grassley is applauding the proposed GIPSA rules released last week by the USDA.

“These rules, I think, will enable family farmers to have more confidence in the market and help ensure that they get a fair price for their efforts,” Grassley says.

Grassley, who chairs the Senate Judiciary Committee and also serves on the Senate Agriculture Committee, says he’s hearing from cattle producers who think the major meat packers have too much power.

“Many producers believe packers are manipulating prices with their ability to control the supply of feeder cattle,” he says. “There are also complaints that packers are intentionally skirting the intent of mandatory price reporting with the times during the week that they’re willing to purchase cattle.”

The North American Meat Institute says the rules will upend the established system for marketing cattle and “open a floodgate of litigation”. But Grassley’s not buying it.

“What’s wrong with knowing what the marketplace is doing? I don’t understand these complaints,” Grassley says.

The proposed rules were sent to the White House Office of Management and Budget for review. Once approved by OMB, they will be published in the federal register.

Grassley made those comments Tuesday morning in his weekly conference call with ag reporters.

AUDIO: Excerpts from Grassley conference call with ag reporters