Welcome to the sixteenth issue of Angus e-List

USDA Price Reporting Fix is Good News for the Cattle Industry

Cattle Producers Urged Changes

Washington, D.C. (July 2, 2001) - A United States Department of Agriculture (USDA) report, released today, proposes changes, urged by the National Cattlemen’s Beef Association (NCBA), that will increase the amount of price reporting information disseminated and is expected to improve the reporting program overall, the NCBA said today. NCBA submitted written system recommendations, to USDA, and met with USDA on several occasions while the system was being revised.

"We strongly support the USDA plan to modify confidentiality standards," said Chuck Lambert, NCBA Chief Economist. " NCBA is pleased that USDA, responded to industry concerns about the limited amount of information being released and adopted cattle producers’ recommendations for change. NCBA policy calling for modification of confidentiality standards was adopted during the February 2001 convention."

The USDA mandatory price reporting system went into effect on April 2, 2001 with a restrictive guideline which prevented USDA from releasing pricing data if less than three packing companies report it, or if any one company represented more than 60% of any line of report to USDA.

"NCBA applauds Secretary Veneman for her quick response and equitable solution," said NCBA President Lynn Cornwell, a cattle rancher from Glasgow, Montana. "This new proposed system will allow greater access to pricing information."

The USDA report, from an internal price reporting review team appointed by Secretary Veneman in mid-May, covers a number of aspects of the price reporting system. Additional industry recommendations are being reviewed and considered. Price reporting information is a valuable tool in price discovery and is used, by cattle producers, for making important business decisions.

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