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Livestock market volatility emphasizes need for safety net

A livestock market specialist says the extreme volatility in the livestock markets emphasize the importance of risk management tools available through the Farm Bill.

University of Missouri’s Scott Brown testified in front of the House Agriculture Committee on Tuesday about the current financial situation for the nation’s livestock producers.  He tells Brownfield in 2009 the livestock industry hit the lowest of lows and then saw record profits in 2014.

Brown says the volatility in the markets opens doors to conversations about the programs livestock producers want and need for long-term survival.  “We’ve come off of very good returns,” he says.  “In fact we debated the most recent Farm Bill in what were some really good times with the exception of some weather problems.  Now we’re talking about debating this next Farm Bill in what will be lower crop prices and lower livestock prices.”

Brown says starting Farm Bill discussions now brings the overall issues that need to be debated to the forefront of conversations.

But with the elections this fall there is uncertainty about how it will end up.  “I think those certain issues for agriculture are going to be in place regardless of who is in office,” he says.  “I think it’s a good start to the process and a good start to the discussion and now we have to build from there.  It took us – as you well know – multiple years to the get the Farm Bill to the finish line.”

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