ATLANTA, Ga. – While the nation’s largest farm organization has announced its support of the Cattle Price Discovery and Transparency Act of 2021, it also seeks to revise one key element of the bill: the establishment of mandatory minimums for negotiated cash-bid purchases.

At the American Farm Bureau Federation’s (AFBF) 103rd Convention, held last month in Atlanta, where delegates set the 2022 policy direction, they voted to oppose government mandates that force livestock processing facilities to purchase a set percentage of their live animal supply via cash bids.

“The American Farm Bureau Federation appreciates the hard work that has been done on both sides of the issue to address the pressing needs facing America’s cattle industry,” said Zippy Duvall, AFBF president.

“The Cattle Price Discovery and Transparency Act takes positive steps toward ensuring fairness for America’s farmers and ranchers as they work to feed this country’s families,” he added.

The bill would essentially require the USDA to set regional mandatory minimum cash trade for fed cattle purchased by meat packers for slaughter.

“We support the majority of this legislation, but we cannot support mandatory cash sales,” Duvall said. “We are committed to working with the sponsors of the bill to make revisions to ensure it aligns with the priorities outlined by our membership.”

Sponsored by Sens. Deb Fischer (R-Neb.) and Chuck Grassley (R-Iowa), and co-sponsored by 14 other senators, the legislation was the focus of intense debate at the convention, with delegates voting to revise previous livestock marketing organizational policy.

Ernie Birchmeier, Michigan Farm Bureau senior industry relations specialist, said although the legislation would equip farmers with more information by establishing a cattle contract library, update mandatory price reporting and increase fines for companies that violate the Packers and Stockyards Act (assuring fair competition and fair trade practices, and safeguard farmers and ranchers), he questioned the merits of government-mandated purchasing requirements.

“American Farm Bureau Federation policy supports increasing negotiated sales in fed cattle markets if government efforts to increase negotiated sales are respectful of regional difference,” he said. “But, delegates ultimately voted to oppose government mandates that force cash-bid thresholds in the livestock industry.”

Fischer and Grassley recently announced they plan to proceed with the legislative proposal, including efforts to boost cash sales.

“Though there are differences of opinion within their own organization on the solution, family farmers and ranchers have been clear,” Fischer said. “Robust negotiated cash sales are integral to facilitating price discovery in the market.”

Grassley said he had the strong support of Senate Ag Committee members, with 10 out of 22 members signing onto the legislation.

He added unfair practices by meatpackers are largely to blame for soaring prices at the grocery store.

“I understand that the cartel of four meatpackers, which controls 85 percent of the beef market, is pressuring others in the ag community to oppose this bill,” he said. “However, I remain focused on providing the most complete solution to improve price transparency and market access to the independent producers I hear from each day.”

Farmer and rancher delegates at the convention also held discussions, which included livestock market transparency and farm labor, said Sam Kieffer, AFBF vice president of public affairs.

“What’s most noteworthy is the amount of time they spent discussing livestock markets, and our folks are calling for greater transparency, working for more sunlight into how cattle are marketed,” he said.

Delegates also called for increased transparency in dairy pricing.

“Specifically, how the federal milk marketing orders work and some of the differences and nuances within each of the federal orders, and asking the USDA to spend more time and energy making sure that dairy producers across the country can get a better understanding of what actually goes into the components of their milk check,” Kieffer said.

In addition, delegates opted to include biodiesel in the organization’s biofuel policy, increasing federal broadband standard speeds, and the continuation and expansion of urban agriculture.

“The very important conversations that were held on our delegate floor from farmers and ranchers from all locations across our great nation lay the groundwork for the staff and leaders, and grassroots network of Farm Bureau to move forward engaging with our elected officials,” Kieffer said. “It gives us the roadmap on how we advocate for America’s producers.”