After several months of work a National Cattlemen’s Beef Association Committee has offered a fix to the cattle market. Committee member and Rock Valley, Iowa cattle producer Brad Kooima says their 75-Percent Rule is a voluntary program. It utilizes a formula developed by Colorado State University economist Dr. Steven Koontz that determines in each region of the country what level of negotiated cash cattle must be traded to achieve a robust market.
Kooima says the 75-Percent Rule on negotiated cash will be tried on a voluntary basis starting the fourth quarter of 2020. If the desired levels are not achieved after a year of monitoring, it will then be mandated through legislation.
He says for the 75-Percent Rule it also relies on the participation of the nation’s beef packers.
Kooima admits this is a slow fix for the problems in the cash cattle market but it is a place to start. He adds its also unprecedented for NCBA to back this kind of proposal.
