Per nationalhogfarmer.com,
Nebraska meatpackers can now own hogs.
Under LB176, passed February 5, a person
who owns, leases or holds a legal interest in a swine production operation can
enter into a contract to produce swine for a packer. The producer, or contract
grower, will own the land and facilities used to raise the livestock while the
packer owns the swine.
State Senator
Ken Schilz said Nebraska was the only state that prohibited packers from
directly or indirectly owning hogs. Because packers in other states are not
subject to that restriction, packers who process Nebraska hogs could
move to neighboring states.
In an
editorial in the Schuyler Sun, Senator Jerry Johnson observed, “Supporters of LB176 argued that
passage of this measure would give the Nebraska farmer another tool to compete
in today's economy. It was said that young farmers would be helped by this bill
as providing a source of income in an otherwise volatile industry with less
risk. It was also said Nebraska farmers contract now with big corporations like
Smithfield or Tyson, but ship their animals out of state for processing. Under
this bill, processing will take place in the state. Jobs will be created and
economic advantages will result.”
Opponents of
the bill argued it would negatively impact family farms. Senator Al Davis of
Hyannis told Fortune magazine that contract farming has become more prevalent
in livestock states where packer bans have been overturned and that the contract model can be dangerous for
farmers. Davis
contends that many farmers who sign such contracts take on huge loans to
pay for the infrastructure required to meet packers’ demands for large herds, leaving them unable to negotiate higher prices.
