Grassley Reintroduces '50-14' Bill, Cattlemen React
Bi-partisan legislation was introduced in the Senate on Wednesday that would require a minimum 50% of a meat packer’s weekly volume to be purchased on the open or spot market. The legislation is often referred to the "50/14" bill, also noting the 14-day window for delivery of the cattle.
Senator Chuck Grassley (R-Iowa) and Jon Tester (D-Mont.) announced the legislation to “foster efficient markets while increasing competition and transparency among meat packers who purchase livestock directly from independent producers,” according to a statement from Grassley’s office.
“The lack of transparency in cattle pricing isn’t a new problem. Unfortunately, the COVID-19 pandemic has only highlighted the need for additional price transparency measures to ensure producers are getting a fair price for the hard work of raising cattle,” Grassley said in the statement.
Other Senators support the legislation are: Sens. Joni Ernst (R-Iowa), John Hoeven (R-N.D.), Tina Smith (D-Minn.), Mike Rounds (R-S.D.), Ron Wyden (D-Ore.), Steve Daines (R-Mont.) and Cory Booker (D-N.J.)
“Montana livestock producers have made it clear: there needs to be more transparency in the cattle market to ensure ranchers get a fair shake, especially as market consolidation continues to rise,” Tester said. “This bill is about putting Montana family ranchers first, instead of tying their bottom lines to the whims of multi-national corporations.”
Grassley and Tester’s bill follows the Cattle Market Transparency Act of 2021 introduced earlier this session by Nebraska Senator Deb Fischer.
United States Cattlemen’s Association (USCA) President Brooke Miller said in a statement his organization supports both bills.
“The two bills, while different, both focus on necessary changes and enhancements to the cattle marketplace,” Miller said. “USCA supports both pieces of legislation and will be working with both offices on paths forward.”
The Iowa Cattlemen’s Association also indicated support for the reintroduction of the bill.
“Our producer members have continually expressed that all participants in the fed cattle market share responsibility in providing price discovery and transparency,” Matt Deppe, CEO of Iowa Cattlemen said. “This legislation better balances the distribution of responsibility across U.S. fed cattle inventories. To make informed decisions, buyers and sellers must have access to more reportable market data. With two bills on the table and a dialogue set to recommence, now is the time to work together to negotiate the best possible solution for the cattle industry.”
National Cattlemen’s Beef Association (NCBA) VP of Government Affairs Ethan Lane, however, said the Grassley bill is not the solution the industry needs.
“NCBA has and will continue to work alongside our affiliates, Congress, and USDA to increase price discovery and improve the business climate for producers across the country. However, simply put, Senator Grassley’s bill misses the mark,” Lane said. “The industry – from leading livestock economists to NCBA state affiliates – agrees that any legislative solution to increased price discovery must account for the unique dynamics within each geographic region.
“As we have seen in other sectors, a one-size-fits-all government mandate rarely achieves the intended goal. Per our grassroots policy, NCBA supports a voluntary approach first to increased negotiated trade. If a voluntary approach is unsuccessful, that same policy provides guidance toward a legislative solution that more closely resembles Senator Fischer’s Cattle Market Transparency Act,” Lane said. “We will continue to work toward a more level-playing field for producers, and we invite Senator Grassley to join the majority of stakeholders in reaching a collaborative solution.”
