Monday, July 19, 2010

USDA Rule Falls Short Of Goals

Please excuse HOTH's recent absence from the blogosphere. We've been waiting for an analysis of a USDA rule that purportedly will promote competition and fairness in the livestock and poultry industries. An initial review of the regulation finds it falls well short of that mark.

The rule would dictate how hogs -- and other livestock and poultry -- are bought and sold in this country and would prompt nearly all livestock and poultry contract disputes to be resolved through litigation in federal court.

NPPC will be weighing in on the rule before the comment period ends -- now scheduled for Aug. 23. (That is just four days before a scheduled USDA-Department of Justice "workshop" on competition in the livestock industry to be held in Ft. Collins, Colo.) The organization has asked for an extension of the comment period, citing the weak economic and business impact analyses conducted by USDA.

Over the coming weeks, HOTH will provide details on the effects on pork producers of various provisions of the proposed GIPSA rule. Stay tuned.

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