Cattle produces aren’t the only ones who could take an economic hit if new regulations, proposed by USDA’s Grain Inspection, Packers, and Stockyard Administration (GIPSA), are added to the Packers and Stockyards Act of 1921.
Consumers could end up paying higher prices for fewer beef selections if the new GIPSA rules take effect, according to Steve Foglesong, president of the National Cattlemen’s Beef Association and a producer from Fulton County.
The new rules seem to take aim at packer ownership of livestock in an effort to address concerns about a lack of competition among packers.
The GIPSA rule infers all cattle will be valued on an average or standard price, regardless of quality. Any deviation from the standard price must be justified to the government, which could lead to litigation that livestock buyers seek to avoid, according to the NCBA president.
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