La Junta Livestock Commission
La Junta, Colorado
Thought this might be helpful. It is provided by LMA which is Livestock Marketing Association which provides our cattle insurance here at La Junta Livestock and lobbies for the cattle industry, sale barns and producers.
LMA Hard at Work on Investigation and Fed Cattle Pricing Concerns
On Saturday, the LMA Board of Directors, Government and Industry Affairs committee, and Membership Services committee had a call to discuss ongoing concerns in the cattle industry. Discussion included:
• LMA supports the ongoing efforts by livestock organizations and individuals to bring about a pricing mechanism that would better serve the cattle feeder, and thereby the cattle producer. We encourage LMA members to support those initiatives that they believe have merit, and to help in any way they feel comfortable with.
• There was a strong consensus from this meeting that the role of the Livestock Marketing Association in this situation is to strongly advocate for, and assist where possible, the investigations by U.S. Department of Agriculture and the Department of Justice into the pricing differential between the wholesale price of beef and the price that cattle feeders are receiving for their cattle.
LMA is conducting thorough research of antitrust and fair practices laws, as well as past lawsuits. The intent of this research, along with additional discussions, is to pinpoint areas of concern within the process of price discovery between meat packers and cattle feeders. The LMA will advocate to the U.S. Department of Agriculture, the Department of Justice, the Commodity Futures Trading Commission, and other agencies, to include these specific areas of concern in their investigations.
The LMA will also work in cooperation with Congress and other livestock organizations to bring about a thorough and meaningful investigation into the pricing mechanisms involved.
Details Emerging on USDA COVID-19 Aid
Late last Friday, USDA announced a $19 billion program that combines $16 billion of direct payments to producers and $3 billion in commodity purchases for distribution through food banks and faith-based organizations.
This includes $9.6 billion in direct payments will go to livestock producers — $5.1 billion to beef cattle, $2.9 billion to dairy farmers, and $1.6 billion to hog producers.
According to a release from Senator Hoeven of North Dakota, producers will receive a single payment based on calculations of losses in two periods:
85% of losses from January 1 to April 15
30% of the losses from April 15 to September 30
While the aid is appreciated, it will fall short of covering all of the price lost due to COVID-19. Additionally, livestock groups are concerned a reported $125,000 cap per commodity for each individual/entity will limit the ability of larger producers to receive meaningful assistance from the program.
USDA aims for payments to go out in late May, but further details of the program and sign up are still pending.