Ranchers Want Hearings on Broken Livestock Market
Captive Supply Reform Reintroduced in House
Billings, Mont. - The Western Organization of Resource Councils (WORC) urges Congress to hold hearings on legislation that would release the stranglehold packers have over the livestock industry.
Representatives Earl Pomeroy (D-ND), Barbara Cubin (R-WY), and Stephanie Herseth (D-SD) reintroduced the Captive Supply Reform Act, H.R. 4257, on November 8 in the House of Representatives. The bill would reform, but not prohibit, livestock marketing contracts between meat packers and livestock producers. The bill also would open competition in the beef and pork markets by requiring a fixed base price in contracts and bidding on supply contracts.
“Ranchers need this simple reform to restore competitive cattle markets and improve the economic health of beef producers,” said Roger Brenna, a rancher from New Town, N.D., and WORC spokesperson. “Without competitive markets, we’ll lose auction yards, feeders, independent family farmers and ranchers, and rural communities.”
Captive supplies are livestock owned or controlled through contracts by the meatpackers.
“These packers use captive supplies to manage the market and manipulate the price paid to ranchers for their cattle,” Brenna said.
Four companies control 81% of the U.S. fed slaughter cattle and half of the hogs sold in the United States, according to the U.S. Department of Agriculture. Meatpackers obtain half of all cattle and hogs they slaughter through captive supplies.
“WORC appreciates that Representatives Pomeroy, Cubin, and Herseth have taken this step,” Brenna said. “Congress should take the next step by holding hearings soon and passing this bill to restore competition to our cattle and hog markets.”
H.R. 4257 is a companion bill to S. 960, sponsored by Senators Mike Enzi (R-WY), Byron Dorgan (D-ND), Kent Conrad (D-ND), Tim Johnson (D-SD) and Craig Thomas (R-WY).
WORC is a network of grassroots organizations from seven states that includes 9,500 members and 45 local community groups. WORC represents farmers, ranchers, and consumers in Colorado, Idaho, Montana, North Dakota, Oregon, South Dakota, and Wyoming.
The press release says it all, the big meat packers control the market. Why this legislation is needed I will never understand since it is all ready illegal by the Packers and Stockyard act but some Govt. lawyer decided it wasn't, I wonder how much the meat packing industry paid him for that decision, so another solution is being looked for.
I've always been a big believer in the free market and I hate to interfere in it. I know a lot of feeders that are happy with the contracts they get with the packers and they don't want to give them up. Other guys don't like them. They feel they are getting ripped off. Talking to both sides I just don't know.
I've always been against captive supply by the packers but I am not sure if we need more laws to fix the issue. Just enforce the laws all ready in place. I would like to see this get a fair hearing and will write our Senators to ask if they will push for hearings on this legislation and see where it would go. I am sure the meat packers will bury under a pile of money. If they do, I will know which way to decide on the issue.
Supply yourself with a mental equivalent, and the thing must come to you. Emmet Fox
