WASHINGTON – Senators Chuck Grassley of Iowa and Russ Feingold of Wisconsin today introduced legislation to require 25 percent of a packer’s daily kill come from the spot market.
“We know what’s going on. When the price is high, the packers kill their own livestock and when the price is low the packers fill their slots with cheap livestock. This essentially cuts out the independent producer. Our legislation would help give livestock producers a fair shake the farm gate,” Grassley said.
"Our hard-working farmers in Wisconsin and across the country deserve a fair chance to compete in the agricultural markets," Feingold said. "This proposal will help prevent large companies from unfairly keeping livestock prices for independent producers low."
The Senators said that their legislation would help guarantee independent livestock producers a competitive position due to the packers need to fill the daily 25 percent cash market requirement.
The 25 percent spot market standard is not new to the livestock industry. Smithfield Foods agreed to purchase 25 percent of its hogs on the spot market in a consent decree with the Iowa Attorney General.
Grassley and Feingold introduced similar legislation in the 108th Congress.
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