August 2, 2010
NPPC questions USDA extended livestock rule
While it welcomed the extension of the comment period on it, the National Pork Producers Council (NPPC) said the USDA's proposed rule on the buying and selling of livestock and poultry will be a disaster for producers.
According to a review by NPPC, the rule would dictate the terms of contracts, restrict marketing arrangements, require reams of paperwork, create legal uncertainty and limit producers' ability to negotiate better prices for the animals they sell.
"That's a recipe for stifling innovation, driving up costs, forcing simple contract disputes into court and-given those adverse consequences-compelling packers to own their animals rather than to contract with farmers like me to raise them," NPPC president Sam Carney said.
In addition to the extension, USDA issued a "misconception and answer" document on the rule, attempting to clarify six provisions-a highly unusual move, particularly during a public comment period.
