Ohio Farmers Union

Serving Family Farmers and Consumers Since 1934



United to Grow Family Agriculture Since 1934

  • About
    • The Farmers Union Triangle
    • Vision
    • OFU Leadership
  • Issues
    • 2020 Virtual Lobby Days
    • OFU Policy & NFU Policy
    • 2019 Lobby Day Registration
    • Get Involved!
    • NFU Climate Leaders
  • Education
    • 2019 OFU Essay Contest
    • Ohio Farmers Union Scholarships
    • Farm Safety
    • Renewable Energy Curriculum
  • Insurance
    • Hastings Mutual Insurance Co.
    • Health & Other Offerings
    • Ohio BWC Group Coverage
  • Join Us
    • Member Benefits
    • Insurance
  • Blog

USDA Issues Initial Report on Cattle Market Disruptions

August 10, 2020 By Ron Sylvester Leave a Comment

Share
Share on Google Plus
Share
Share on Facebook
Share
Share this
Pin
Pin this

Click Here to download the entire report in pdf.

In a report released in late July, the U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) provided an update on its investigation into recent market disruptions and price volatility in the beef industry.

The investigation was prompted by complaints from ranchers, who attributed the rising spread between live cattle prices and boxed beef prices to anticompetitive practices among meat processors. The report neither exonerates beef packers nor reveals violations of the Packers and Stockyards Act. However, it does provide policy recommendations for strengthening competition and transparency in the industry.

Said the USDA in the opening of its report:

This report, prepared by AMS in coordination with USDA’s Office of the Chief Economist, first summarizes market conditions, fed cattle prices, boxed beef values, and the spread before and after the fire and plant closure at the Tyson Holcomb plant. The report then summarizes market conditions, fed cattle prices, boxed beef values, and the spread before and during the COVID-19 pandemic. It does not examine potential violations of the Packers and Stockyards Act.  The investigation into potential violations is ongoing, and therefore, AMS has limited ability to publicly report the full scope and status of the investigation.

A vocal proponent of open and competitive markets, National Farmers Union (NFU) welcomes USDA’s inquiry into these two events. However, as farmers endure unfair and abusive conditions, the report must be accompanied by real and meaningful reforms, as NFU President Rob Larew affirmed in a statement:

“Price fixing in the meat industry is not a new phenomenon; a century ago, Farmers Union members were contending with similarly high levels of concentration among meatpackers and the anticompetitive practices that kind of market power enables. Recognizing the immense danger of unchecked corporate consolidation, Congress and the White House worked together to restore competition and shield farmers and ranchers from abusive treatment.

“We appreciate USDA’s efforts to examine this issue and present potential solutions, but it is clear that this is just the beginning; now, like 100 years ago, radical and immediate action is needed to create a fair and balanced food system. The agency must thoroughly conduct its ongoing investigation, for which we intend to hold them to account. Additionally, we urge legislators, USDA, and other federal agencies to strengthen protections for farmers and ranchers, enforce existing antitrust regulations, and prevent future abuses of market power.”

To download a copy of the report, CLICK HERE.

Share this:

  • Click to share on Facebook (Opens in new window) Facebook
  • Click to share on X (Opens in new window) X

Filed Under: Blog, Home-Feature

Leave a ReplyCancel reply

  • Email
  • Facebook
  • RSS
  • YouTube

Latest News from the Ohio & National Farmers Union

National Farmers Union Week of Action for Strong Farm Bill

National Farmers Union (NFU) today concluded the Week of Action that gathered more than 100 farmers from across the country to the halls of Congress … Read More

How Do Tariffs Affect Family Farms?

A Talk in Kent, Ohio with Ohio Farmers Union and Others Have you noticed the price of eggs? Who hasn’t! How do government actions and tariffs … Read More

NFU Praises Sale of E15 Through Summer

National Farmers Union (NFU) applauds the Environmental Protection Agency’s (EPA) emergency fuel waiver allowing nationwide sale of E15 gasoline … Read More

Farmers Union Supports Congressional Oversight of Trade and Tariffs

National Farmers Union (NFU) today sent a letter to the U.S. House and Senate, urging lawmakers to support the Trade Review Act of … Read More

Check Out the Entire Blog

NATIONAL FARMERS UNION

Click to Take Action



Contact

Ohio Farmers Union
P.O. Box 363
1011 N. Defiance Street
Ottawa, Ohio 45875
Phone: (419) 523-5300
Toll Free: (800) 321-3671

Copyright Ohio Farmers Union© 2025 | Site by: RCS Communications