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House Appropriations Committee Approves 2012 Spending Bill that Prohibits Implementation of Proposed GIPSA Livestock Marketing Rule

Wednesday, June 1, 2011

(American Meat Institute)

The House Appropriations Committee late yesterday approved a 2012 Appropriations Bill that includes language to prevent USDA from finalizing the livestock marketing rule proposed by the Grain Inspection, Packers and Stockyards Administration (GIPSA) in June 2010.  The bill now moves to the full House for consideration.

The rule, proposed June 22, 2010, generated nearly 60,000 comments and extensive controversy.  No in-depth government economic analysis of the proposal has been completed yet, though one is under way.  A private analysis by John Dunham & Associates that was commissioned by AMI projects that the rule, if implemented, could cost $14 billion and 104,000 jobs.  The analysis also projects that consumers will see increased meat and poultry prices for lower quality products.

Other Provisions

The bill also provides USDA’s Food Safety and Inspection Service (FSIS) with $973 million, which is $35 million below FY 2011 levels and $39.5 million below the President’s FY 2012 funding request.  Earlier this year, the administration requested that Congress approve user fees for meat, poultry, and egg inspection in its budget submission.  The House Appropriations Committee chose not to impose user fees for inspection services on the meat and poultry industry and to provide full federal funding for inspection.  

The Committee-approved measure includes full funding for both the Market Access Program (MAP) and the Foreign Market Development (FMD) program. MAP was funded at $200 million and FMD was funded at $34.5 million for FY 2012. 

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