Cattle Market Reform Discussion Continues in 2022

Contact: Anna Hastert, Director of Communications, Iowa Cattlemen's Association, 515-296-2266

Today, Sens. Chuck Grassley (R-Iowa), Deb Fischer (R-Neb.), Jon Tester (D-Mont.), and Ron Wyden (D-Ore.) introduced an updated version of the Cattle Price Discovery and Transparency Act. The bipartisan bill includes several provisions aimed to improve price discovery and transparency for all participants in the fed cattle market, just as the preceding bill introduced last year. However, negotiations between members of the Senate Agriculture Committee and feedback from the U.S. Department of Agriculture (USDA) led to several changes from the previous iteration that remain to be determined. 

In brief, the Cattle Price Discovery and Transparency Act requires the nation’s largest beef packers to procure a percentage of their cattle via negotiated-type trade. This bill signals commitment from congressional leaders to cross the finish line with a solution that requires packers to increase competitive participation in the fed cattle market beyond alternative marketing arrangements. 

"Sen. Grassley works tirelessly to represent his constituent cattlemen in the face of adversity,” said Bob Noble, president of the Iowa Cattlemen’s Association. “We look forward to working with USDA and Iowa's congressional delegation to ensure the provisions are implemented in the most meaningful way possible.” 

About the Cattle Price Discovery and Transparency Act 

• The bill establishes a variety of approved pricing mechanisms that may be utilized by packers for procurement, including cattle sold at a stockyard/auction market, through a trading system or platform with multiple buyers and sellers, and via cash or negotiated grid means.  
• The provisions outlined in the bill apply to the lower 48 states, which means the USDA is charged with creating new regions to regulate major packers outside of the beef belt. 
• Initial mandatory minimum requirements within each region are based on historical cash and negotiated grid purchases in 2020 and 2021. 
• Covered packers are required to meet mandatory minimums within a time period established by the USDA (minimum one week; maximum 30 days). 

In addition to the aforementioned changes, the bill requires covered packers to report the number of cattle scheduled for delivery for each of the next 14 calendar days; includes mandatory reporting of cutout yield data; establishes a cattle contract library; expedites average carcass weight reporting; and increases the penalty for mandatory minimum violations to $90,000 each. 

Click here to read the complete bill text. 

Click here to read a one-pager on the bill. 

Click here to read a section-by-section summary of the bill.

About the Iowa Cattlemen's Association: The Iowa Cattlemen’s Association represents nearly 8,000 beef-producing families and associated companies dedicated to the future of Iowa’s beef industry. ICA’s mission is “Grow Iowa’s beef business through advocacy, leadership and education.” www.iacattlemen.org.