As live cattle prices continue to rise amidst the nation's herd contraction, South Dakota Republican Dusty Johnson emphasizes the importance of transparency in the marketplace during the upcoming farm bill discussions.
Johnson, a member of the House Ag Committee, has been vocal in advocating for increased transparency measures in recent years. He believes that addressing "underlying frailties within the marketplace" is essential, even with current record-high live cattle prices.
He introduced legislation to create a cattle contract library at USDA, which is currently in a pilot phase. The library aims to provide insight into alternative marketing agreements between packers and producers, promoting honesty and transparency. Johnson insists that the cattle contract library should be made permanent in the next farm bill.
While some support transparency measures, not everyone agrees. The National Cattlemen's Beef Association (NCBA) has shifted focus to existing tools, like the cattle contract library, which they support. Ethan Lane, head lobbyist for NCBA, notes that there hasn't been recent discussion about price discovery in the organization's policy committees.
Farm Credit Council President and CEO Todd Van Hoose highlights the significance of a strong farm bill to create a safety net for producers, especially amid challenging times in agriculture.
As the market dynamics evolve, addressing transparency in the live cattle market remains a crucial aspect of the upcoming farm bill discussions. A balanced approach is necessary to ensure the best possible outcome for agricultural producers and the industry as a whole.
Photo Credit: gettyimages-imaginegolf
Categories: South Dakota, Livestock, Beef Cattle