Beef Buzz News
Voluntary Approach is Best Way to Receive Adequate Price Discovery And Maximum Value For Cattle, Says Ethan Lane and Jerry BohnMon, 19 Oct 2020 14:00:40 CDT
A voluntary approach to adequate price discovery while getting maximum value for the cattle is the favored path for NCBA members said Ethan Lane, NCBA vice president of government affairs.
Lane recently visited with Radio Oklahoma Ag Network Farm Director Ron Hays for an update on the NCBA’s price discovery action.
A plan was developed after the NCBA summer meeting in Denver by a working subgroup to establish negotiated trade thresholds or triggers.
What we don’t want is just more cash trade, Lane said.
We want true negotiated trade, that’s how you’re going to have real price discovery, he said.
That means making sure we’re creating opportunity for there to be value for both buyer and seller, he said.
The goal here is to create some tools that incentivize negotiated trade, Lane said.
A government mandated “gun to the head” approach isn’t going to give us the authentic negotiation the industry needs, he said.
We will be continuing to look at this every quarter so we can assess this trade and packer participation in the different regions, Lane said.
That is going to be our focus moving forward, he added.
The chair of the working subgroup is Jerry Bohn, from Pratt, Ks., and NCBA president-elect.
Bohn said the six-member subgroup worked hard to develop a solution. Click here for an overview of the plan rolled out by the subgroup.
The process went well, Bohn said.
This group was able to come together and compromise, he said.
Bohn said they are going to put this into effect January 1, 2021 and then look at this every quarter reviewing it in arrears so in early April the group will come together and evaluate how the triggers were met during the first quarter.
Click on the LISTEN BAR below to hear more comments from Ethan Lane and Jerry Bohn.
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