Partial estimated costs for NAIS according to the spreadsheet for an RFID system for cattle developed by Dhuyvetter and Blasi of Kansas State University in 2003 (wand reader price updated for 2009).
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- 400 head or more of cattle: $6.69 per head
- 100 head of cattle: $18.07 per head per year.
- 25 head cattle: $63.61 per head
NOTE: Cost for small producers is almost 10 times that for large producers.
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- Net Returns on Cow - Calf operations projected for 2009 – 2010 per cow: $-24.25, -47.921. Combined with NAIS costs: projected net loss of $87.86 - 111.53 per cow/calf. This does not include the time cost of implementing NAIS.
Results of 2007 US Census of Agriculture for percentage of small producers, who would be most impacted by NAIS.
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- 90% of beef producers own fewer than 100 cattle each
- 70% of pork producers own fewer than 100 hogs
- 91% of sheep producers own fewer than 100 sheep
- 93% of egg producers own fewer than 100 poultry.
These figures correlate with the conclusions of Buhr and Resende-Filho in their presentation at the 2006 International Association of Agricultural Economists Conference. Their total projected cost of NAIS per quarter for just the beef and pork sector was $27.5 million, that far outweighed the projected increase in revenue of $10.42 million. They concluded with this statement: “If the defense of the NAIS is based on its effect on the demand side of the market for meats it is expected that the US Federal government will need to pay for a great part of the costs with the NAIS; otherwise the NAIS is likely to be economically unfeasible in the US.” This statement is more relevant in 2009 with the economic challenges that ALL small producers face.
Case: A small producer/homesteader (actual example)
Sabo Family in Southern Illinois. Livestock: 9 milk goats, 10 goat kids, 2 goat bucks, guardian donkey, 2 feeder steers. Provides food for 3 adults, 4 children, along with ¼ acre garden, 80% of family food.
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- Operating cost FY 2008: grain, supplements, hay, veterinarian expenses: $3,007
- Return on investment: 275 lbs livestock protein, 380 gal. goat milk, 100 lbs soft cheese (I.e. Cream Cheese), 130 lbs hard cheese (Cheddar, etc), organic matter to maintain garden production.
- Current market cost of items produced for personal use: $16,569.95.
Breakdown:
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- Protein @ $5.22 per pound ($1435.50): Goat Milk @$3.86 per quart ($5,867.20); Soft Cheese @ $21.92 per pound2 ($2,192), Hard Cheese @ $54.43 per pound3 ($7,075.25)
- Projected additional cost of NAIS enrollment: $4,024 initial investment4 with annual cost fluctuating $2,871 - $3,981 Dependant upon livestock “events,” database management costs increases, and as yet unknown producer participation cost requirements for the “Free” National Animal Identification System (renewal, reporting, redress).
Conclusion: Operating costs first year would increase 133.82%. Combined with economic downturn in the United States economy, increased feed costs due to redirection of feed grain to Biofuel development and increased farm costs to produce hay, mandatory enrollment would be counter-productive to the individuals involved due mainly to cost constraints. Basically, it would be impossible.
This producer would be required to purchase of an additional $16,569.95 of foodstuffs on an annual basis. Point of interest: The annual Mortgage payment of this individual is $13,584. The amount spent for food on an annual basis would exceed the Mortgage cost. This does not include the loss of supplemental organic matter to maintain garden plot for production of vegetable and fruit products. Author was unsure of where to source compost.
Cost to Rural and Local Economies
- As small farms disappear, counties and states will experience loss of taxes
- Stores selling local farm products will have to “outsource” to non-local
- Farm support businesses will lose their primary customer base
Cost to Consumers
Case: Diederichs. Family of six in the suburbs of Chicago who sources much of their family food from local farms, farmer’s markets and neighbors. ”I know that every particle of my family’s hamburger came from the same healthy, local steer. It is impossible to put monetary value to peace of mind”—Sue Diederich,, mother
- 2008, one year’s supply of beef for family of six: $1115.41 (a half steer)
- NAIS impact on farmer expected to increase that amount to $2000.005
NOTE: The same increase applies to chicken, lamb, turkey, pork, eggs, milk and other dairy products fish and shellfish6
Impact on garden and produce:
- Quality produce depends on natural inputs, especially manure of nearby livestock farms. Costs for manure will also increase, if it can be sourced locally at all. Small produce farms will lose their sources or leave the business.
Impact on Non-Food Consumer Goods:
- All clothing and other items made from animal hides or fibers will increase in price.
- Some 1500 different consumer products manufactured with milk casein as an ingredient—adhesives to paint and pharmaceuticals (Venus Casein Products7) will increase in price.
- Vaccinations for childhood diseases, flu. pneumonia, and more contain ingredients (legally necessary in some cases)from cattle and/or chickens (Vaccine Excipient8) that will increase in price