990759 Senate Panel OKs Meat Price Bill

Washington - Farmers and ranchers will be in a better bargaining position with the nation's big meatpackers under legislation moving through the Senate to require the companies to report the prices they pay for livestock, backers of the bill say.

The measure, approved unanimously by the Senate Agriculture Committee, would preempt a flurry of new state laws aimed at soothing angry producers who think they are being squeezed by packers.

Similar legislation is being prepared in the House.

“It's a great day for a lot of livestock producers,” said Senate Minority Leader Tom Daschle, D-SD.

The legislation will give producers “the tools they need to make informed marketing decisions,” said John McNutt, president of the National Pork Producers Council.

The Agriculture Department would collect and publish the data, and could start a similar program for sheep.

The issue had languished for years because of strong opposition from the packing industry until pork prices collapsed last winter and five states, led by South Dakota, passed their own reporting laws.

A federal judge recently upheld South Dakota's reporting requirement, which took effect July 1, but struck down a section in the law that forbids packers from paying different prices for the same quality livestock.

Nebraska, Iowa, Minnesota and Missouri followed South Dakota in enacting reporting laws.

The price-reporting issue stems from a larger concern by many farmers and ranchers about a steady stream of agribusiness mergers.

In the livestock and poultry industries, four large firms in each sector slaughter four out of five beef cattle, three out of four sheep, three out of five hogs and half of all chickens, according to a recent University of Missouri study.

Sen. Pat Roberts, R-Kan., cautioned that the reporting requirement could backfire on producers. The data will give packers a better idea of what their competitors are paying for livestock and the result could be lower, not higher, prices, Roberts said.

If that happens, Congress would have to reconsider the law, said Sen. Tim Johnson, D-S.D. The Senate measure would expire in five years.

Packers won a provision in the legislation that would prevent USDA from charging them for the cost of the program.

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