NDFU applauds steps to increase price discovery

Recent steps by USDA to create fair and competitive markets in the heavily concentrated beef industry drew applause from Farmers Union leaders today. The agency released a report showing unjust and anticompetitive pricing strategies that exist in today's beef market, and announced a new rulemaking effort to enhance price discovery and fairness in cattle markets.

"Increased transparency in cattle pricing is essential for cattle markets to be fair and competitive in this country," said North Dakota Farmers Union President Mark Watne. "With just four packers controlling more than 80% of the beef packing industry, we have to take steps to ensure markets are fair and transparent."

Watne noted that the Senate Agriculture Committee advanced the Cattle Price Discovery and Transparency Act in 2022, but the bill was never brought to the floor. "We urge Congress to act now to protect the cash market and the price transparency it provides. In the face of Congressional inaction, we applaud USDA's efforts to keep this conversation going and look at all the ways we can ensure alternative marketing arrangements are fair to the producer."

In 2020, NDFU's Ad Hoc Livestock Committee presented a series of recommendations for livestock industry reform. In addition to improving price discovery, Farmers Union supports the reinstatement of mandatory country-of-origin labeling and efforts to increase local and regional slaughter capacity.