Beef Buzz News
Dr. Bart Fischer Says Government-Mandated Cash Cattle Trade Could Reduce Prices to Cow-Calf Producers
Fri, 22 Apr 2022 11:00:29 CDT
Texas A&M’s Dr. Bart Fischer, former Chief Economist of the House Ag Committee talks with Ron Hays, Senior Farm and Ranch Broadcaster, on the work going on at Texas A&M on the cattle markets, and a hot topic for those in the cattle business right now- market transparency and mandatory cash cattle trade.
Ron talks with Bart Fischer on Mandator Price Reporting
The agriculture and food policy center at Texas A&M University has been working with economists from across the country on the U.S. Beef Supply Chain. In fact, they put out a book after doing a workshop last summer on cattle markets.
“Two years ago, when all of these issues started heating up, and our congress was in the process of needing to reauthorize mandatory price reporting for livestock, the house, on a bipartisan basis asked us to start looking into these issues,” Fischer said. “So, we coordinated with economists from all over the country- about 17 different co-authors- and ended up publishing a book last fall that digs into all of these issues.”
Following the publishing of the book, Fischer said the Senate launched their compromise between Senator Charles Grassley of Iowa and Senator Deb Fischer of Nebraska. Senator John Boozman, ranking member of the Senate Agriculture Committee then asked us to study that proposal, Fischer said, and the compromise that came after as well.
Growing up on a cow-calf operation, Fischer said he understands where people are coming from on this price-reporting issue.
“We have had the rub between the cow-calf sector and the packers for a hundred years in this country, so it is not new,” Fischer said.
In this particular case, Fischer said we are looking at imposing mandatory minimums of the amount of transaction volume that has to be done by a negotiated framework.
“I get that the idea is to introduce transparency, so I see nothing wrong with the motivation there to try to help producers,” Fischer said.
The concern we see in, virtually, every economist we have worked with around the country, Fischer said, is that the solution designed to help at the farm level ultimately could end up reducing prices the cow-calf producers see at the farm gate.
“That is really the message we have been conveying is to be very careful about some of these proposals that are being offered because it may very well have the exact opposite effect,” Fischer said.
We see nothing wrong with trying to improve transparency to help improve prices for producers, Fischer said, but the concern is that some of those solutions may actually end up making things worse at the farm gate.
Another concern with mandatory cash trade is that value-added programs may be penalized.
“A lot of this was innovation from the ground up,” Fischer said. “It was designed to help capture value-added and capture and distinguish quality.”
More in-person negotiation, Fischer said, is an example of these issues making their way back up to the farm gate. Added value programs were created to capture quality and contribute to the successful cattle industry we have in the U.S. today, Fischer said.
Click on the LISTEN BAR below to hear more from Bart Fischer and Ron on mandated price reporting.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Cattle on Feed Report Shows Biggest May First Inventory Since 1996- Drought Pushing Cattle Into Feedlots Sat, 21 May 2022 15:01:06 CDT
Lance Zimmerman with Cattlefax Offers Cow Calf Producers Strategies for Success Fri, 20 May 2022 08:44:10 CDT
Kent Bacus says NCBA is Committed to Promoting Trade to Benefit US Cattle Producers Thu, 19 May 2022 09:54:10 CDT
John Butler with the Beef Marketing Group Communicates to Consumers that the Beef Industry is Sustainable Wed, 18 May 2022 09:46:15 CDT
John Butler with Beef Marketing Group Aims to See All Segments of the Beef Industry Working Together Tue, 17 May 2022 09:44:42 CDT
Fewer Pounds of Beef Coming in the Beef Pipeline Mon, 16 May 2022 09:02:35 CDT
NCBA's Colin Woodall Gives Credit to Cattle Producers for Always Being Sustainable Fri, 13 May 2022 11:08:03 CDT
Dakota Moss Describes Benefits of Utilizing an LRP Program for Cattle Producers Thu, 12 May 2022 09:53:54 CDT
Historically Poor Pasture Conditions to Hit Beef Supplies Ahead Wed, 11 May 2022 11:31:21 CDT
Six Years After Repeal, Senator John Thune Still Wants Mandatory Country of Origin Labeling Tue, 10 May 2022 09:39:50 CDT
USMEF's Erin Borror Suspects Increased Herd Liquidation May Lead to Tighter Supplies in the Future Mon, 09 May 2022 12:29:27 CDT
USMEF's Erin Borror Sees Growth in US Beef Exports for the Remainder of 2022 Fri, 06 May 2022 10:13:22 CDT
NCBA's Ethan Lane Hopes to Ensure Risk Management Tools Are Available for all Sectors of Cattle Production Thu, 05 May 2022 10:37:28 CDT
NCBA's Ethan Lane Believes Grassley-Fischer Bill Wil Not Accomplish What the Authors Are Intending Wed, 04 May 2022 09:18:44 CDT
Dr. Stephen Koontz says Mandated Cash Cattle Trade Will Cost Cow-Calf Producers Tue, 03 May 2022 17:30:26 CDT
NCBA Concerned with the Biden Admin's Plan to Publish their own WOTUS Rule Ahead of the Supreme Court Mon, 02 May 2022 09:03:33 CDT
NCBA's Mary Thomas Hart says U.S. Agriculture Needs a Clear Definition of WOTUS Sun, 01 May 2022 20:37:57 CDT
Don Schiefelbein tells U.S. House Ag Committee that Freedom to Market Matters Thu, 28 Apr 2022 11:20:51 CDT
President-Elect of KLA, Shawn Tiffany, asks Congress not to Limit the use of AMA's Wed, 27 Apr 2022 09:48:23 CDT
OSU's Derrell Peel Says We Could See at Least a 3-4% Decrease in the Beef Cow Herd in 2022 Tue, 26 Apr 2022 06:49:14 CDT
Surprise! Derrell Peel Says Feedlot Numbers Well Above Pre Report Expectations in Latest Cattle on Feed Report Sun, 24 Apr 2022 19:40:48 CDT
Dr. Bart Fischer Says Government-Mandated Cash Cattle Trade Could Reduce Prices to Cow-Calf Producers Fri, 22 Apr 2022 11:00:33 CDT
Cattle Producers Can Strategically Utilize the LRP Program to Secure Profit Thu, 21 Apr 2022 06:49:26 CDT
Dakota Moss Says Cattle Producers Can Benefit from Utilizing a LRP Program Wed, 20 Apr 2022 09:46:06 CDT
Dr. Rosslyn Biggs: Keep an Eye Out for Dust Pneumonia in Cattle During Dry Conditions Tue, 19 Apr 2022 07:53:43 CDT
Andy Holloway on Upcoming Annual Hemphill County Beef Conference Tue, 19 Apr 2022 07:46:21 CDT
USMEF Still Combatting Covid in Today's Global Market, Says Dan Halstrom Fri, 15 Apr 2022 12:29:37 CDT
Dan Halstrom with USMEF Sees 2022 Off to a Promising Start Thu, 14 Apr 2022 13:12:39 CDT
OSU's Derrell Peel Predicts Tighter Cattle Supplies Going Forward in the Drought Wed, 13 Apr 2022 08:26:27 CDT
K-State Researcher Sees Industrial Hemp as Stress Reducer for Cattle Tue, 12 Apr 2022 15:29:42 CDT
Oklahoma Cattlewomen's Beef Advocacy Contest for Youth Winner, Morley Griffith Tue, 12 Apr 2022 15:28:27 CDT
Virtual Fencing and the Advantages for Rotational Grazing with Jimmy Emmons Fri, 08 Apr 2022 08:04:21 CDT
Jimmy Emmons Talks on the Benefits of Starting Down the Road to Soil Health Thu, 07 Apr 2022 13:27:11 CDT
Jimmy Emmons Tells Ranchers to Be Proactive During Dry Times by Prioritizing Grazing Management Wed, 06 Apr 2022 08:42:08 CDT
Latest USDA Prospective Plantings Points to Lower Feeder Cattle Prices Ahead Tue, 05 Apr 2022 11:48:14 CDT