Representative Johnson co-sponsors bill to create USDA library of cattle contracts

WASHINGTON – South Dakota Representative Dusty Johnson has co-authored a bill that he hopes will give small beef producers more leverage in price negotiations.

Rep. Johnson and Rep. Henry Cuellar (D-TX-28) introduced the bipartisan on Wednesday Livestock Contract Libraries Act of 2021 (HR 5609), which would establish a library for livestock contracts within the Department of Agriculture Marketing Service of the United States Department of Agriculture (USDA).

Under current regulations, breeders do not have access to the contractual conditions offered by slaughterhouses, which leads to a decrease in the influence of small producers in price negotiations.

According to Johnson, with the USDA maintaining a library of pork contracts, significant volatility in the livestock market and the release of the July 2020 Boxed Beef and Fed Cattle Price Gap Investigation Report, the creation of a library was recommended by experts and stakeholders.

In response to this investigation, Johnson introduced livestock reform legislation to ensure more transparency in the market, including the creation of a contract library.

“Producers have been calling for increased transparency and leverage in the livestock market for years, the Cattle Contract Library Act will provide near real-time granular data, ensuring producers understand the value of marketing agreements,” said Johnson. “Data drives marketing decisions and a library of contracts will provide essential leverage for independent producers. “

The Cattle Contract Library Act of 2021 is supported by the American Farm Bureau Federation, National, Cattlemen’s Beef Association, US Cattlemen’s Association, National Farmers Union, Livestock Marketing Association, SD Cattlemen’s Association, South Dakota Farm Bureau and South Dakota Farmers Union.

“Market transparency is an essential part of price discovery in livestock marketing. As the industry has evolved, most sales are now made under alternative market arrangements, ”said Eric Jennings, president of the South Dakota Cattlemen’s Association. “We need a library of contracts to create transparency in these agreements in order to get better price discovery in the live cattle market. The South Dakota Cattlemen’s Association has advocated for a contracted library and we applaud and thank Representative Johnson for bringing forward legislation to meet this need.

The Cattle Contract Library Act is co-sponsored by Representatives Tracey Mann (R-KS-01), Frank Lucas (R-OK-03), Rick Allen (R-GA-12), Ashley Hinson (R-IA-01), Kelly Armstrong (ND-AL), Jason Smith (R-MO-08), Trent Kelly (R-MS-01), Michelle Fischbach (R-MN-07), Angie Craig (D-MN-02), Mariannette Miller-Meeks (R-IA-02), Jim Hagedorn (R-MN-01), David Rouzer (R-NC-07), Vicky Hartzler (R-MO-04), Adrian Smith (R-NE-3), Abigail Spanberger (D-VA-07), and Darren Soto (R-FL-09).

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