U.S. Reps. Dusty Johnson (R-SD) and Frank Lucas (R-OK) on Oct. 19 offered a bipartisan bill that would direct the U.S. Department of Agriculture (USDA) to establish a contract library for America’s cattle producers.
“Data drives marketing decisions and a contract library will provide much-needed leverage for independent producers,” said Rep. Johnson, who sponsored the Cattle Contract Library Act of 2021, H.R. 5609, along with 17 original cosponsors, including Reps. Lucas, Kelly Armstrong (R-ND), and Henry Cuellar (D-TX).
The legislation would task USDA’s Agricultural Marketing Service with creating the library, according to a summary provided by the lawmakers, which notes that currently, cattlemen are unaware of contract terms being offered by packers, resulting in reduced leverage for smaller producers during price negotiations.
If enacted, H.R. 5609 would instruct USDA to regularly update the library in a user-friendly format and provide weekly or monthly reports, and would authorize USDA to issue grants to universities, associations or other institutions that can work directly with producers to disseminate and analyze data to drive marketing decisions, the summary says.
“Producers have been asking for increased transparency and leverage in the cattle market for years,” Rep. Johnson said. “The Cattle Contract Library Act will provide granular data in near real time, ensuring producers understand the value of marketing agreements.”
“Congress and stakeholders have long been discussing needed reforms to ensure fair competition and price discovery in agriculture markets,” added Rep. Lucas. “In order for ranchers to have a truly transparent, market-driven economy, cattlemen and women must be able to leverage marketing data while negotiating the price of cattle.”
Rep. Lucas also pointed out that while USDA currently collects livestock and meat price data, producers lack information on the contract terms being offered by packers as alternative marketing arrangements continue to grow in popularity.
“The Cattle Contract Library Act and the creation of a cattle contract library is an important step forward in working to cultivate a fair and transparent finished cattle marketing system,” said Rep. Lucas. “I thank my friend and colleague, Congressman Dusty Johnson, for his work addressing the disparities faced by America’s cattle producers, and I look forward to continuing to work with my fellow cattle ranchers as we ensure a fair beef market, benefitting both producers and consumers.”
H.R. 5609 is supported by the American Farm Bureau Federation, the National Cattlemen’s Beef Association, the U.S. Cattlemen’s Association, the National Farmers Union, the Livestock Marketing Association, and the Oklahoma Cattlemen’s Association.