Bullard said packers will not forgo the improved efficiency and profitability they gain through value-based marketing arrangements simply because the GIPSA rule would require them to maintain records that explain why price adjustments, including premiums and discounts, were applied to a producer's cattle.
"We are dismayed by the outright scare tactics employed by NCBA and their meatpacking partners," Thornsberry said. "But, we are pleased that USDA is not bowing to NCBA's unscrupulous antics and is proceeding to finalize the GIPSA rule. In this rule-making process, everyone has been given a full five months to submit their analysis and concerns, and these submissions will enable GIPSA to respond to and address any assertions of benefits and costs that were not already addressed in the proposed GIPSA rule that was made publicly available June 22.
"We're not about trying to scare producers into opposing the most significant rule-making our industry has seen in decades and one that holds promise to reverse the ongoing erosion of competition within our industry," Thornsberry concluded. "Instead, we want producers to take a critical look at the rule itself and to formulate thoughtful comments that they can submit to USDA, which is how we can ensure that the rule will do what needs to be done to prevent the highly concentrated meat-packers from abusing their inherent market power."
R-CALF USA encourages producers to read the rule, along with R-CALF USA's summary of how the rule would impact the U.S. cattle industry by visiting http ://www.r-calfusa.com/Competition/gipsaRule.htm, and also encourages producers to submit their own written comments to GIPSA before the comment deadline of Nov. 22, 2010.
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R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA represents thousands of U.S. cattle producers on trade and marketing issues. Members are located across 47 states and are primarily cow/calf operators, cattle backgrounders, and/or feedlot owners. R-CALF USA directors and committee chairs are extremely active unpaid volunteers. R-CALF USA has dozens of affiliate organizations and various main-street businesses are associate members. For more information, visit www.r-calfusa.com or, call 406-252-2516.
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