Source:  Michael Fielding, MEATINGPLACE.COM, 5/20/11

Senators Mike Enzi, R-Wyo., Tim Johnson, D-S.D., Chuck Grassley, R-Iowa, and Jon Tester, D-Mon., introduced a bipartisan bill Thursday that would amend the Packers and Stockyards Act of 1921 by targeting what supporters are calling “anti-competitive forward marketing contracts” and ensuring that ranchers have full access to the marketplace.

The bill would require marketing agreements to have a firm base price derived from an external source, guaranteeing that local contract prices are not subject to manipulation by packer owned herds. It also would require future forward contracts for livestock to be traded in public markets where buyers and sellers can witness bids and make their own offers.

“The top four multi-national meat-packing companies today control roughly 85 percent of the domestic slaughter capacity in the United States,” Johnson in a statement. “It is increasingly tough for independent farmers and ranchers to gain fair market access.”

Other components of the bill include and exemption for producer-owned cooperatives, packers with low volumes and packers who own only one processing plant. It also would guarantee that trading is done in quantities that provide market access for both small and large livestock producers.

“A level playing field is essential for our family farms and ranches to compete,” Tester added.

The bill came just one day after industry groups voiced support for a letter signed by nearly 150 of the House of Representatives urging Agriculture Secretary Tom Vilsack to revise proposed changes to livestock marketing rules under Grain Inspection, Packers and Stockyards Act.

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