Sens. Deb Fischer from Nebraska and Ron Wyden of Oregon introduced the Cattle Market Transparency Act of 2021 this week, which would mandate how cattle must be marketed. KLA opposes this bill. KLA members recognize the critical importance of increasing negotiated trade to ensure sufficient price discovery and support an industry-led effort to do so. However, current policy, developed and voted on by members, does not support a mandatory minimum threshold dictated by Congress or a regulatory agency as this would limit the individual freedom of livestock producers to manage and market their cattle as they see fit. Members have opposed such limitations throughout the history of the organization.
If enacted, this legislation would direct the secretary of agriculture and the Office of the Chief Economist at USDA to establish regional mandatory minimums for negotiated trade of fed cattle. It also would direct USDA to establish a library of cattle formula contracts, amend the definition of “cattle committed” to expand the delivery window from seven to 14 days and clarify confidentiality rules for administering Livestock Mandatory Reporting.