|
|
|
|
|
|
|
| Reader disagrees with Guebert regarding new meatpacker rule |
|
|
|
Dear Editor,
Alan Guebert’s column on USDA’s new meatpacker rule (Big Pork, Big Beef respond to USDA plan, page 4) in the July 21 Farm World, including his criticism of the request for an extension of the public comment period on it, was off base.
First, 60 days is hardly enough time for those affected by it to respond to a rule that would fundamentally change the way livestock and poultry are bought and sold in this country. Additionally, USDA is conducting “workshops” to solicit comments on competition in the livestock and poultry industries. The next one is four days after the rule’s comment period closes.
Second, and contrary to Guebert’s assertion, the rule will not “open” markets but will dictate the terms of contracts, restrict marketing arrangements, require reams of paperwork, create legal uncertainty and limit producers’ ability to negotiate better prices for the animals they sell.
That’s a recipe for stifling innovation, driving up costs, forcing simple contract disputes into court and – given those adverse consequences – compelling packers to own their animals rather than to contract with farmers to raise them.
The regulation goes well beyond the mandate of the 2008 Farm Bill and even includes provisions that were rejected by lawmakers during debate on that legislation. One provision, which eliminates the need to prove that an “unfair” action actually prevented competition, is contrary to the decisions of eight of the U.S. Court of Appeals’ 13 circuits.
USDA’s rule won’t open markets and create more competition; it will close them and lead to less competition, and that’s bad for producers and bad for consumers. |
| 7/28/2010 |
|
|
|
|
