Minnesota Farmers Union

John F. Kennedy once said, "The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways." The dinner tables of America need farmers to receive a fair price, and that is why Minnesota Farmers Union (MFU) was pleased to hear that the United States Department of Agriculture (USDA) has announced a proposed rule change to the Grain Inspection Packers and Stockyards Administration (GIPSA).

The proposed rule would bring common sense to GIPSA and change the current system of how livestock are procured and marketed by meat packers. The rule includes several new provisions that will grant protection to producers from previous marketing barriers, which have favored the packers, with a goal of defining and changing unfair and unreasonable practices in the industry.

Advocating for fair, transparent and competitive markets has always been a core issue for MFU, and these proposed rule changes is a step in the right direction. MFU is pleased to see that finally there is a legitimate department and administration level proposal to correct the many years of one-sided marketing that farmers have faced when selling their farm products.

Key elements that MFU supports are:

• packers would be prohibited from purchasing, acquiring or receiving livestock from other packers, which increases competition for independent livestock producers;
• the allowance for a producer to present individual harm cases only, and no longer require proof of harm to regional competition when bringing a claim about an alleged anti-competitive practice; and
• producers will be given the option to decline the use of mandatory arbitration to settle a dispute and go to trial if necessary.

MFU and National Farmers Union have expressed concern about increased consolidation and vertical integration in the livestock, grain, and poultry marketplace and shrinking farm numbers, and it seems like the USDA finally took our concerns to heart by announcing these proposed GIPSA rule changes. The heart of the matter is simply increasing farm numbers and increasing farm gate profit.

The dramatic shrinking of cattle and hog farms only highlights the need for rule changes. With cattle, there were over 1.6 million farms in 1980, but only about 950,000 today.  In regards to hogs the numbers are highlighted even more because producers received 50 percent of the retail value of a hog in 1980 and only received 24.5 percent in 2009.

It is very important for anyone who has a stake in this to submit your comments to the record so the USDA gets a full understanding of how the current rules impact your farm or ranch.

You can access the rules by going to www.gipsa.usda.gov, click on Federal Register, which is on the right side, and then go to the June 22 Federal Register. MFU will be submitting comments, and I strongly encourage farmers and ranchers who have a stake in this to submit your comments to the record. The comment period ends August 23, 2010. They can be sent via email to, comments.gipsa@usda.gov, or sent by mail to Tess Butler, GIPSA, USDA, 1400 Independence Avenue, SW, Room 1643-S, Washington, D.C. 20250-3604.

Make sure your voice is heard, and comment on the GIPSA rule today!