NCBA Responds To Cattle Market Transparency Act
WASHINGTON (Sept. 22, 2020) – The National Cattlemen’s Beef Association (NCBA) released the following statement in response the Cattle Market Transparency Act, introduced today by Sen. Deb Fischer (R-Neb.):
“Price discovery is an issue of critical importance to cow/calf producers, stockers, backgrounders, and feeders across the United States, and more negotiated trade is needed throughout the cattle feeding regions to ensure sufficient price discovery. That is why all of NCBA’s 46 state affiliate organizations unanimously adopted a fed cattle price discovery policy at our 2020 Summer Business Meeting. This policy directs NCBA to pursue a voluntary approach to price discovery that includes triggers established by a working group of producer members which, if tripped due to a lack of regionally sufficient negotiated trade, would prompt NCBA to seek legislative or regulatory solutions—such as those outlined in Sen. Fischer’s bill—to achieve robust price discovery.
“Since the adoption of this policy, that producer group has been diligently working to establish these triggers and identify a path to increase negotiated trade across all cattle feeding regions. We anticipate that the subgroup will meet the October 1st deadline set by the policy to establish regional triggers.
“Sen. Fischer’s bill explores many avenues to improve transparency in the cattle markets. The creation of a cattle contracts library and clarification of confidentiality rules will provide crucial data to cattle producers as they seek to make informed marketing decisions. However, our policy dictates that the voluntary framework we are developing be allowed the opportunity to succeed or fail before we can lend our support to regional mandatory minimums for negotiated trade. We welcome a continued dialogue with Sen. Fischer and her colleagues on ways to achieve robust price discovery for all cattle producers.”