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US: Senators want reconsideration of GIPSA proposed rule

Idaho Senators Mike Crapo and James Risch are urging the United States Department of Agriculture (USDA) to reconsider the purpose and benefits of the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) livestock procurement rule, citing concerns about the rule's impact on the livestock and poultry industries.

“We can agree that transparent and efficient markets benefit producers, processors, retailers and consumers, and that additional regulations may be needed to protect producers and encourage competition. Nevertheless, we have to make certain that any well-intentioned remedies do not have unintended consequences, thereby harming the very farm and ranch families that the rule is intended to protect,” the Senators wrote in a letter to Secretary of Agriculture Tom Vilsack.

The Senators voiced several concerns about the proposed rule, including the prohibition on packer-to-packer sales. Additionally, the Senators note that the rule’s new reporting requirements will threaten the privacy of confidential business information and added government oversight will harm producers by eliminating market options.

Finally, the Senators are troubled that the proposed rule lacks a sound economic analysis, which they state is essential.

“We appreciate the Department’s past coordination between its staff and Idaho’s livestock producers, as these cooperative efforts have greatly benefited our state’s agricultural community. However, we are concerned that the proposed GIPSA rule will have negative repercussions for the livestock and poultry industries, by among other things, creating an atmosphere of uncertainty. As such, we urge the Department to carefully reconsider the purpose and benefits of this rule, and to actively listen to the concerns of the producers who will be impacted,” the letter concludes.

To view the letter, click here
 
Source: American Meat Institute (AMI)

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