GIPSA RULE REINTRODUCED BY USDA
NCBA is asking USDA to withdraw potentially damaging livestock marketing rules originally introduced in 2010 by the Grain Inspection, Packers and Stockyards Administration (GIPSA). USDA recently announced the latest GIPSA proposal includes an interim final rule on competitive injury and two proposed rules addressing undue preference. NCBA President Tracy Brunner said these provisions were troubling in 2010 and remain a major concern six years later.
Proposed rulemaking initially undertaken in 2010 was quickly defunded by Congress at the urging of KLA, NCBA and other livestock groups. The organizations contended the GIPSA rule was a flawed concept that would limit producers’ marketing options, while adding layers of bureaucracy and opening the door to litigation.
“These rules were flatly rejected by cattle producers six years ago and a strong bipartisan majority in Congress expressed their continual disapproval through a half decade of defunding,” said Brunner, a rancher and cattle feeder from Ramona.
While USDA has excluded marketing arrangements from the latest proposal, competitive injury and undue preference provisions are included in the rule-making. Brunner said the rules are another government solution in search of a problem. If implemented as written, he said the rules would limit producer marketing options, compel buyers to offer lower bids across the board to avoid the appearance of preference and create a situation ripe for baseless legal challenge.
NCBA remained engaged with USDA throughout the defunding period. Brunner said, once again, this administration has disregarded producer input and moved forward with regulations that would cause irreparable harm.
KLA WEEKLY VIDEO
KLA Vice President of Communications Todd Domer says producer input is being sought for the next National Beef Quality Audit.