Livestock Purchasing Rules Proposed

The U.S. Department of Agriculture's Grain Inspection, Packers and Stockyards Administration (GIPSA) conducted a conference call this morning in advance of the release of the June 22 Federal Register seeking comments on proposed changes to livestock purchases. According to the agency, the rule will provide protections for producers against unfair, fraudulent or retaliatory practices.

"While a great deal of the discussion on the call was geared toward contracts, there were questions related to the prohibition on packer to packer sale of livestock," commented Peter Orwick, executive director for the American Sheep Industry Association.

A few of the protections provided for in the proposed rule include:

• further definition to practices that are unfair, unjustly discriminatory or deceptive;
• defines undue or unreasonable preferences or advantages;
• establishes new protections for producers required to provide expensive capital upgrades to their growing facilities;
• prohibits packers from purchasing, acquiring or receiving livestock from other packers and communicating prices to competitors; and
• improves market transparency by making sample contracts available on GIPSA's Web site for producers.

The comment period will run through Aug. 23. Information is available at www.gipsa.usda.gov.