President Obama Should Withdraw Proposed GIPSA Livestock Marketing Rule As He Seeks to Encourage Business InvestmentMonday, February 7, 2011
Washington, D.C . – President Obama’s speech today to the U.S. Chamber of Commerce in which he said he wants to partner with business and encourage business investment was welcome news to the American Meat Institute, which suggested that an excellent first step would be a withdrawal of one of the most onerous and controversial rules ever proposed by the U.S. Department of Agriculture: the livestock marketing rule published in June by USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA).
“The future direction of the
proposed rule is uncertain, and if there’s
one thing that American businesses cannot
tolerate easily now it’s more economic
uncertainty. Uncertainty kills investment
and, in turn, economic growth,” said AMI
“President Obama today said, ‘If there is a reason you don’t share my confidence, if there is a reason you don’t believe that this is the time to get off the sidelines – to hire and invest – I want to know about it. I want to fix it.’ We are glad to hear those words. Our own economic impact analysis, which was necessitated by USDA’s failure to conduct one, showed that this proposal could cost 104,000 jobs and remove $14 billion from the GDP. The proposal also circumvents judicial precedent and goes well beyond the modest Congressional mandate included in the 2008 Farm Bill. We hope the President will move swiftly to fix this misguided regulatory end-run around Congress and the Courts.”
Boyle noted that bankers such as Mark
Greenwood at Ag Star Financial have been
outspoken about the chilling effect this rule
will have on a banker’s willingness to lend
money to livestock producers, providing further
evidence of this proposal’s detrimental
impact if finalized.
“We’ve been telling anyone who would
listen that this proposal stands to harm the
To read more about the rule, go to www.MeatAMI.com/gipsa .
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