Biden’s Action Plan Draws Mixed Reviews From Cattlemen

The Biden Administration’s Action Plan to invest $1 Billion to expand competition in the U.S. meat packing industry and strengthen enforcement of antitrust regulations drew mixed reactions from cattlemen. Biden said Monday he believes concentration in the meat packing sector helps allow for “massive profits” and reflects a “market being distorted by lack of competition.”

The White House unveiled its “Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain," which includes investments in a variety of meat packing and processing initiatives by USDA, along with a promise to put teeth back into the Packers & Stockyards Act, and a plan for USDA and the Department of Justice to “better coordinate” enforcement.

The U.S. Cattlemen’s Association said in a statement that it had participated in several stakeholder meetings and public comment opportunities last year, which helped White House officials formulate this Action Plan.

"Today's announcement puts into motion what our members have, for years, urged action on - empowering the independent producer and processor to create a more robust and resilient food system,” said USCA president Brooke Miller.

“We are hopeful that the Action Plan unveiled today will help bring transparency and true price discovery to the cattle marketplace, bring back truth in labeling through the closure of the Product of the U.S.A. loophole, and invest in a stronger - and more American - meat industry. We look forward to working with the Administration to implement the provisions outlined in this Action Plan," Miller said. 

The National Cattlemen’s Beef Association said it welcomed the announcement of an additional $500 million in funding to expand small, independent meat processing facilities, which “will strengthen the business climate for American cattle producers and help alleviate the choke point in the beef supply chain,” said Ethan Lane, NCBA vice president of government affairs.

“We are concerned by the administration’s unclear position on the Packers and Stockyards Act and await further details on their plan to exercise greater enforcement power. NCBA is committed to ensuring that cattle producers have the ability to realize higher profits for their cattle and make the marketing decisions that are best for their business.” 

American Farm Bureau Federation president Zippy Duvall said it is important to determine why farmers and ranchers continue to receive low payments while families across America endure rising meat prices.

“Farmers and ranchers want a fair shake,” Duval said. “The joint initiative between USDA and the Department of Justice to create an online portal to report competition law violations, and efforts to strengthen the Packers & Stockyards Act, will go a long way to ensuring fairness in the industry. More accurately defining ‘Product of the USA’ labeling will also allow families to make more well-informed decisions at the grocery store.”

But R-CALF USA (Ranchers-Cattlemen Action Legal Fund United Stockgrowers of America) said it was skeptical about the plan’s strategy for addressing decades of nonenforcement of U.S. antitrust laws and the 100-year-old Packers and Stockyards Act.

“We recognize that this level of government involvement is unprecedented, and that it’s critical for reversing the decades of inattention, neglect and denial that facilitated the elimination of competition in our U.S. cattle industry,” R-CALF CEO Bill Bullard said.

“Our nation’s cattle industry is in a serious crisis and while we appreciate the Administration’s plans to write rules with which to implement portions of the Packers and Stockyards Act, correct the exploitive ‘Product of USA’ beef label, and increase market transparency by requiring more information, as well as its attempt to identify any new, potential violations of competition laws, the fact remains that the Administration has not announced that it will take decisive enforcement action to protect America’s cattle producers from the harms they’ve been experiencing for the past seven years, and we remain disappointed with that omission,” Bullard concluded. 

Texas & Southwestern Cattle Raisers Association president Hughes Abell said packer capacity must be increased and the cattle market must operate transparently with robust price discovery if Biden’s plan is successful at increasing fairness and competitiveness in the meat and poultry supply chain.

“We appreciate the White House and Congress for their willingness to tackle these critical issues,” Abell said. “As with any complex issue, the details will be immensely important as we must be cautious to not disrupt the efficient system we’ve built. We look forward to learning more specifics and working with administration officials, Congress and others within the cattle industry to ensure these efforts provide meaningful improvements for cattle producers.”