NCBA Raises Concerns About Farm Bill Amendment
by Darcy Maulsby

 Farm Bill amendment that would ban packer ownership, feeding or control of cattle could have unintended consequences, says the National Cattlemen's Beef Association (NCBA).

According to NCBA, these could include an increase in the market power of certain packers, fewer risk management options for the producer and the elimination of value-based pricing. The Kansas Livestock Association reports that NCBA made these arguments in a recent letter to U.S. senators. NCBA expressed opposition to the amendment, which was approved last week on a 51 to 46 vote.

Increasing Market Power?
In the letter, NCBA President Lynn Cornwell explained that Tyson/IBP, the largest U.S. packer, does not feed cattle.

The second and third largest packers and many producer-owned packing plants feed cattle as a way to compete with the industry leader. This gives them the ability to manage inventory, control livestock quality and identify animals for specialty products sold in the consumer marketplace.

The amendment banning packer ownership would increase the market power of the nation's largest packer by taking away a tool other processors use to compete, Cornwell said.