The National Cattlemen’s Beef Association along with the North American Meat Institute are opposing the spot market legislation introduced this week by Iowa Senator Chuck Grassley. That measure would require packers who process 125,000 or more cattle per year to get fifty percent of their animals from the spot or cash market. NCBA Policy Division Chair and South Dakota Cattleman Todd Wilkinson says the major problem with the bill is it mandates how trade is conducted.
He says even producers, mostly those in the South who market their cattle through formula pricing would have to change that before selling their animals.
Wilkinson says by mandating trade, it could prevent some producers from even selling their cattle on a grid basis.
Wilkinson says another problem with the Grassley bill is that while it mandates the larger packers get 50 percent of their cattle from the spot market, it lets the smaller processors conduct business as usual. He says for the law to work it must include everyone.
