The Price Reform in Cattle Economics (PRICE) Act was recently introduced in the House of Representatives. The act is a means for improving cattle market conditions. Representative Dusty Johnson introduced the bill in response to the Box Beef & Fed Cattle Price Spread Investigation Report. That report detailed issues in the cattle market, and the PRICE Act looks to increase transparency and provide more support.
“USDA laid out several areas where Congress can implement real solutions to improve the market – the PRICE Act is the answer to many of the issues our ranchers have faced for years,” Johnson said in a press release. “Our producers want a fair market and fair prices, and that’s what this bill delivers. Congress needs to deliver for cattle country.”
The legislation has a bipartisan group of cosponsors and is supported by the National Cattlemen’s Beef Association (NCBA), American Farm Bureau Federation, and the U.S. Cattlemen’s Association. Provisions include updates to the Packer and Stockyards Act and creating opportunities for small processors and cooperatives. The bill would direct the ISDA to provide Congress with more information to enhance price discovery and provide more assistance to small processors. The PRICE Act also addresses barriers to entry in the small processor space.
“The Tyson fire in Holcomb, KS and the supply chain disruptions caused by the COVID-19 pandemic have brought the issues of price transparency in the cattle markets and beef processing capacity to a boiling point within our industry,” NCBA’s Vice President of Government Affairs Ethan Lane said in a news release. “This legislation is a significant step in the right direction as we continue to explore ways to support producers who have been impacted by two major black swan events in an already volatile cattle market.”