By Scout Nelson
The USDA Agricultural Marketing Service's (AMS) latest proposal to modify the 1921 Packers and Stockyards Act regulations has the approval of the South Dakota Stockgrowers Association. The Fair and Competitive Livestock and Poultry Market Rules, which alter the existing regulations, define unfair activities in the livestock business.
Such practices are defined by the proposed regulations as those that cause injury to certain market participants or their markets.
Since the termination of the Packers Consent Decree in 1981, livestock producers have faced market manipulation, with courts often failing to protect them due to a lack of competitive damage to the industry.
The new rules, however, set a clear standard: any practice causing substantial harm to one or more participants, which they cannot avoid, is considered unfair. This shift aims to better protect producers from deceptive and harmful actions by large corporate packers.
These rules are crucial for providing producers with the tools they need to combat unfair practices and ensure true price discovery in the livestock market. The SDSGA commends USDA AMS for their dedication to reinstating competitive market opportunities, which are essential for the future of American food security.
The AMS invites comments on the proposed rule until September 11, 2024, and the SDSGA urges all cattle producers to participate in the process to help shape the future of the livestock industry.
Photo Credit: usda
Categories: South Dakota, Business, General, Livestock, Dairy Cattle, Poultry