By Julie Tomascik
Editor
The American Farm Bureau Federation (AFBF), along with numerous other national commodity organizations, requested the U.S. Department of Agriculture withdraw the interim final rule that amends the Grain Inspection, Packers and Stockyards Administration (GIPSA) Act.
The Farmer Fair Practices Rules under GIPSA set the rule for trade between livestock buyers and sellers with the intention to maintain competition and fairness for both parties.
The interim final rule is well-intended but falls short of supporting both buyers and sellers by not providing definitive parameters to describe a violation, according to Texas Farm Bureau Associate Director of Commodity and Regulatory Activities Tracy Tomascik.
“The rule is too vague and does not have the support of two additional GIPSA rule proposals that would help create the needed parameters,” Tomascik said. “Without defined rules from those proposals, our markets could be dramatically changed for worse with frivolous lawsuits always looming.”
Current rules allow the marketplace to create beneficial Alternative Marketing Arrangements (AMA) for all species of livestock that help find top dollar for each commodity.
This ultimately proves the value differences within a commodity based on product quality.
If the interim final rule passes and is enacted, farmers would risk pricing variations for livestock and result in a generic commodity price across the board, he said.
“Inevitably, that generic price would be the lowest market price rather than the highest. Buyers would have no incentive to award a farmer a higher price for better livestock because the rule makes them vulnerable to a lawsuit,” Tomascik said.
Late last year, AFBF supported the interim final rule, but changed their position after additional review.
AFBF also supports two proposed rules that define “Poultry Grower Ranking Systems” and “Unfair Practices and Undue Preferences.” They have asked for additional clarity on those rules.