JULY 2, 2020 – Iowa Cattlemen’s Association
The Iowa Cattlemen’s Association (ICA) continues efforts to reform cattle marketing, echoing Sen. Chuck Grassley’s request for a Senate Agriculture Committee hearing regarding the issue.
“For years, ICA leaders and members have worked towards solutions to level the playing field and bring producers more leverage in the fed cattle markets,” said Cora Fox, ICA’s director of government relations. “Sen. Grassley has been a strong supporter of our efforts and we are completely on board with his recently-introduced cattle marketing bill. However, not all congressional representatives and members of the Senate Agriculture Committee are treating the issue with the same urgency. A hearing would help bring attention to the issues and possible solutions.”
Grassley’s bill, which is co-sponsored by Sens. Tester (D-MT), Ernst (R-IA), Hyde-Smith (R-MS), Rounds (R-SD), Smith (D-MN), and Daines (R-MT), would mandate a minimum of 50 percent cash trade by each large packing plant, and also require a maximum 14 day delivery period. Currently, cash trade accounts for approximately 25 percent of fed cattle sales and is unbalanced across regions of the United States, which has led to decreased price discovery.
Earlier in June, Grassley requested the hearing.
The ICA sent a letter shortly after to Senate Agriculture Committee Chairman Pat Roberts (R-KS) and Ranking Member Debbie Stabenow (D-MI), saying, “These problems have plagued our industry for nearly two decades, and have been exacerbated with the two most recent ‘black swan’ events—the Holcomb, Kansas plant fire and COVID-19. Both of these events, marked by a rapid price increase in the boxed beef market and the paradoxical decline in the live cattle market, have highlighted the instability within our markets. Our greatest fear—the fear that our industry will no longer remain independent and a source of viable income for farm families—is being realized.”
