Packer control not hurting livestock producers: USDA

US - After years of study, the USDA’s Grain Inspection and Packers and Stockyards Administration (GIPSA), says packer ownership or control of livestock is not harming farmers.
calendar icon 9 March 2007
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The 2002 farm bill included a provision directing GIPSA to study the issue, a provision that was a compromise added to the legislation after efforts to add language regarding competition and packer ownership of animals was defeated

Congress appropriated money for the study in 2003, and it was released last week.

GIPSA Administrator James Link, a former Texas cattleman raised in rural Kansas, discussed the study during a stop here this past week.

The bottom line, Link says, is the study showed no broad negative economic effect on farmers or consumers from packer ownership or control of livestock.

When asked about enforcement of the Packers and Stockyards Act, he said the government is enforcing the law as written.

When there is proof of packers discriminating against producers or fixing prices the government will act, he says. But, without such proof, there is little that can be done.

Source: Iowa Farmer Today
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