There are some reports in Washington that USDA officials are sending a modified version of the GIPSA rule to the Office of Management and Budget.According to a report from Hoosier Ag Today, "Speculation is that USDA would strip out the controversial parts of the proposed rule - and that would result in little impact on the cattle and hog producers of this country - while poultry operations would be subject to more change coming from the amended marketing rule."
Chris Clayton, in an update posted yesterday at the DTN Ag Policy Blog, reported that, "The proposed rule has several major provisions, including language that livestock producers would not be required to show 'harm to competition' in federal lawsuits against packers. Federal courts have repeatedly ruled against producers by citing that the producers have failed o show that a packer's actions harmed overall livestock competition."
"Another provision in the rule would have prevented packer-to-packer sales of livestock, but it too was removed. That provision had raised questions about the effect it could have on small packers who may own livestock several states away, or producers who also are investor-owners of a packing plant."
Posted 11/7/2011
