Meat Institute Criticizes USDA Over Proposed Cattle Market Regulations
The U.S. Department of Agriculture (USDA) has requested more information on potential new regulations under the Packers and Stockyards Act, aiming to reform price discovery in cattle markets.
In response, Meat Institute President and CEO Julie Anna Potts criticized the administration’s actions, calling it an attempt to impose government control over the free market to the detriment of cattle producers, packers, and consumers.
Meat Institute’s Stand Against USDA’s Proposed Reforms
“This isn’t about transparency,” Potts said. “It’s about the government dictating how cattle should be bought and sold.”
The Meat Institute emphasized that the cattle and beef markets already have effective systems in place for price discovery, questioning the need for further government intervention.
Potts voiced concern over the USDA’s intention to phase out Alternative Marketing Arrangements (AMAs), which allow producers to secure higher prices by improving herd genetics, quality, or using sustainability practices.
Concerns Over Phasing Out Alternative Marketing Arrangements
According to Potts, dismantling AMAs would force producers and packers back into the cash market, reducing competition and innovation.
She warned that this backward move would hurt both the industry and consumers, ultimately leading to a drop in beef quality and market choice.
“AMAs provide the very benefits the USDA says it wants—greater choice, transparency, flexibility, and even higher prices for producers,” Potts added. “Removing them would be counterproductive and harm the entire industry.”
Existing Programs Enhancing Market Transparency
The USDA’s proposed changes come at a time when transparency is already enhanced through the Livestock Mandatory Reporting (LMR) program, which requires packers to report cattle prices and market data daily.
Additionally, Congress has funded a Cattle Contracts Library Pilot Program to increase market transparency, allowing packers to submit contract information to a searchable database.
The Meat Institute’s Legal and Market Concerns
Despite the administration’s intentions, the Meat Institute remains opposed to the new rules, arguing that they exceed USDA’s legal authority.
Potts concluded that these changes could disrupt the existing market dynamics and ultimately hurt both producers and consumers.
Curious about how USDA regulations could affect cattle pricing and market choices? Explore our homepage for the latest updates and industry analysis.
