‘Negotiated cash trade’ debate continues
June 18, 2020 By Ken Anderson Filed Under: Livestock, Livestock, News
Proposals to establish a mandatory minimum for negotiated cash trade in the cattle industry continue to stir debate.
One of those proposals would
mandate 50 percent of cattle be traded on a negotiated cash basis with 14-day
Iowa cattle feeder and
commodity broker Brad Kooima says he supports the idea.
“I don’t know what the magic number is. Nobody does. Whether it’s 31 or 48 or whatever,” Kooima says. “But if we don’t have the nerve, the guts, the courage to try to effect change now, then I don’t know that this industry will ever try.”
Livestock market analyst Corbitt Wall agrees that something needs to change.
“As we keep going down this
road, we’re going to continue to lose feeders,” Wall says. “We’re not going to
lose the big corporate feeders. We’re going to lose the independent feeders.”
Opponents of the concept say
it would restrict marketing options for producers and require more government
involvement in their business.
Kooima and Wall spoke during
an Iowa Cattlemen’s Association cattle market webinar.
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