Grassley: Beef Producers Face a “Very Unfair Situation”

Retail beef cuts
Retail beef cuts
(File photo)

U.S. Sen. Chuck Grassley (R-IA) talked with Pro Farmer policy analyst Jim Wiesemeyer on AgriTalk Monday about a host of issues, hearings and proposed policies.

Top of mind for the senator was concern about “big companies” that wield much of the control in the livestock processing industry.

“We expect to make a case that four companies having 80% of the slaughter means the spot person can’t market when he wants,” Grassley told Wiesemeyer. “There’s not enough room for Iowa and other Midwest producers to get their cattle to the slaughterhouse and get a good price. It’s a very unfair situation.”

Grassley supports legislative action, which he along with Sen. Jon Tester (D-MT) originally introduced, because of concerns that small producers are losing money on cattle due to being unable to spot market.

Grassley said he has asked USDA Secretary Tom Vilsack to “look into the situation” to see if he could support the legislation.

“I have not heard back yet, but I think the Secretary has already taken some action with money that's already available to incentivize packers to set up more slaughter, so more markets are available for the spot producer,” Grassley said.

Wiesemeyer then asked Grassley for his take on the $579-billion infrastructure bill addressing transportation, broadband and utilities that Democrats hope to pass.

Grassley told Wiesemeyer that there is some talk that something can come together later this week in the Senate.

“I'm just speaking for Chuck Grassley now, but I think there's a lot of unanimity on this among Republicans,” he said. “How are we going to pay for it? Is it paid for? That may make a big difference whether I would vote for it or not. But everything I've heard up until now, on the programs that are in the bill, I think I could vote for.”

A coalition of more than 100 business leaders on Monday penned a letter to congressional leaders, urging them to pass the infrastructure bill that was agreed to by the White House and a bipartisan group of Capitol Hill negotiators.

“We write to express strong support for your promising efforts to design and pass a Bipartisan Infrastructure Framework, a long-awaited and desperately needed program to renew and rebuild our nation’s crumbling infrastructure,” the letter, which was signed by 146 business leaders, said.

“We urge you to finalize and adopt this program to modernize and expand physical and digital assets that are a necessary foundation for our nation’s sustainable growth,” the letter added.

Wiesemeyer also asked Grassley about the potential for tax increases this year as well as his take on the outlook for ethanol. Listen here for the entire discussion.

 

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