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GIPSA Proposal Doesn't Offer Single Improvement to Livestock Marketing, Says Missouri Ag Economist Ron Plain

Thursday, September 23, 2010

(American Meat Institute)

In an interview with National Hog Farmer, University of Missouri Professor of Agricultural Economics Ron Plain, Ph.D., said that USDA’s Grain, Inspection and Packers and Stockyards Administration’s (GIPSA) proposed rule won’t provide a single positive improvement to the livestock marketing process.

“This represents a radical change with huge implications in the way we sell slaughter livestock in the United States,” he remarks. “It also greatly affects the production contracts that we use for producing our livestock and poultry in the United States.”

“And these proposed changes are not coming from court decisions, but from bureaucrats, who think this set of rules and regulations will provide answers in lieu of an economic study…This is not the way we envision that our democracy is supposed to work,” Plain asserts.

According to Plain, “The proposed GIPSA rule would serve to lower livestock returns overall, line the pockets of lawyers and likely increase industry concentration.”

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