By Jennifer Whitlock
Field Editor

A pair of bills aimed at providing more transparency in the beef supply chain passed the U.S. House of Representatives and are now headed to the Senate for consideration.

Many farmers and ranchers hope the measures will bring more stability to cattle raisers, who watched boxed beef cutout values soar during the pandemic as cattle prices plunged.

One bill would extend U.S. Department of Agriculture’s (USDA’s) Livestock Mandatory Price Reporting through the end of fiscal year 2022.

The other bill, the Cattle Contract Library Act of 2021, would create a library or catalog of cattle purchasing contracts, similar to those available in the swine industry.

The new cattle contract library would require packers to report the terms of alternative marketing agreements (AMAs) between their company and ranchers.

These contracts are called “alternative” because they are made in lieu of cash or spot markets, where transactions occur immediately. Examples of cash markets include auction barn and online auction sales, sales through order buyers, dealers and brokers and direct trades or private treaty sales.

AMAs are typically agreements like forward contracts and marketing agreements. A forward contract simply means a specific number of head of livestock was agreed to be purchased at least two weeks prior to delivery. Marketing agreements are generally long-term, ongoing contracts for packers to purchase livestock with specific terms.

Proponents of the USDA contract library say this would give farmers and ranchers additional data they can use to make better-informed marketing and business decisions.

Despite passing the House 419-9, some senators indicated they do not support an extension of the Livestock Mandatory Reporting (LMR). The LMR rule, under which sale barns and packers are required to disclose the prices paid for livestock, will expire on Feb. 18 without further action.

If the extension passes, industry stakeholders and Congress will have until September to work on additional improvements or changes for a long-term extension.