Small Family Farmer and Rancher Relief Act Introduced

U.S. Rep. David Scott (D-Ga.), Chairman of the House Agriculture Committee, introduced legislation Friday he says will provide financial assistance and create new marketing opportunities for small cattle producers.

“It is a crisis in this nation that we have lost an average of 17,000 cattle ranchers per year,” Scott said in a statement. "The drivers of this loss are complex and multi-faceted, and I applaud many of the efforts my colleagues have taken to try and improve the cattle industry.”

But efforts to address consolidation and transparency do not do enough to help small farmers and ranchers, he said. The Small Family Farmer and Rancher Relief Act would boost premium and insurance subsidies for small cattlemen and create a USDA indemnity program based on a spread with retail beef prices. It would also establish a grant program to help small producers add value to and market meat products.

The National Cattlemen’ Beef Association issued a statement addressing Chairman Scott’s proposal.

“NCBA is committed to working with the House Agriculture Committee to protect our most vulnerable producers, and we appreciate the Chairman's attention on this important issue,” said NCBA Vice President of Government Affairs Ethan Lane. “Unfortunately, H.R. 8590, the Small Family Farmer and Rancher Relief Act, as introduced prompts more questions than it provides answers. While collectively we would have preferred to provide input into the drafting of this legislation, we look forward to working with our partners in the livestock community to address the blind spots in this proposal.”

Scott’s proposal would:

• Offer an increased premium subsidy for small ranchers, including beginning and veteran ranchers, insuring a herd of 100 cattle or less under Livestock Risk Protection insurance policies.
• Create a USDA indemnity program that provides relief to small producers when the price spread dramatically exceeds a historical average. The Beef Cattle Spread Coverage Program would provide relief when the farmer's share of the retail dollar drops below 51.7%. The rate is calculated based on the spread between the price of fed beef cattle, boxed beef sold at the wholesale level, and beef sold at retail.
• Offer incentives for insurance agents to better market Livestock Risk Protection policies to small producers.
• Establish the Small Rancher Market Access grant program, administered by the Agricultural Marketing Serivce, to help small producers and cooperatives add value and market meat products to local and regional markets with a focus on direct-to-consumer and direct-to-institution sales.
• Provide resources to USDA to educate producers and insurance agents on the utility of the livestock insurance programs and the safety net program.