The federal government will investigate rancher complaints of unfair lamb prices, which have collapsed for producers even as market prices have skyrocketed.
The Grain Inspection Packers and Stockyards Administration notified producers earlier this week that its Denver office is looking into the drastic changes in price spreads.
Ranchers have seen lamb profits evaporate as prices of more than $2 a pound a year ago fell to less than a dollar this fall, while at same time retail prices hit $7 a pound in some areas. The U.S. Department of Agriculture responded to the collapse by buying lamb, which should have helped ranchers and closed the price spread. But ranchers say the benefits of the federal commodity purchases never reached the farm and ranch gate. Severe drought in sheep country helped trigger the purchases.
“There’s no drought assistance for meatpackers,” said Peter Orwick of the American Sheep Industry. “I can see where the spread is. I can’t see where they helped the farm-ranch gate price.”
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