Source: Michael Fielding, MEATINGPLACE, 7/29/11

Rep. Cynthia Lummis (R-Wyo.) has introduced a bill that would target what she calls unfair practices to independent ranchers and farmers. The bipartisan Livestock Marketing Fairness Act (H.R. 2631) was introduced in Congress Monday.

It is modeled after a similar bill proposed in the Senate by Sen. Mike Enzi (R-Wyo.), which 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. 

The new House bill would prohibit packers from removing live cattle from the competitive marketplace without first negotiating a firm base price for the cattle through what are called “un-priced formula contracts.” It also would require that forward contracts be traded in open, public markets.

According to the Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America (R-CALF USA), the disparity between what large processors receive for their beef products and the value of what small farmers and ranchers receive for their cattle has grown to 60 cents per pound from less than 40 cents per pound in 1980.

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