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USDA official promises rules to ensure fair livestock markets

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The U.S. Department of Agriculture is committed to improving competition in livestock markets so independent farmers and ranchers can thrive, said the new leader of a U.S. Department of Agriculture agency charged with ensuring market fairness.

J. Dudley Butler, the administrator of USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA), told a gathering of the South Dakota Stockgrowers Association in Rapid City on Friday night that his agency is working on regulations ordered by Congress two years ago that will help restore balance in livestock markets.

Butler began his duties May 11.

He drew applause several times Friday night from the Stockgrowers members attending their annual convention. The group has long criticized GIPSA for not enforcing the 1921 federal Packers & Stockyards Act's prohibitions against unfair and anti-competitive practices.

He didn't reveal specifics but said his agency and the U.S. Justice Department have formed a task force to craft regulations to improve competition and protect independent ag producers.

Butler said all of the GIPSA employees he had spoken with have wanted to work to enforce the law but were prevented because of pressure from higher up in the previous administration. But Butler also said no president since Woodrow Wilson has sought to truly enforce the act.

Butler said the Obama administration and Ag Secretary Tom Vilsack are serious about improving market fairness.

"We're talking about saving the family farm," he said. "We're talking about saving rural America. It is a national security issue to me."

Butler said no segment of the ag industry would be completely happy with the new regulations.

He said the big ag corporations have a right to make a profit but so do farmers and ranchers. "We have to save the livestock industry as a whole, but you are part of that industry," he told the group.

Butler said the mission of the Packers & Stockyards Act is to protect fair trade practices, and the financial integrity and competitive markets for livestock, meat and poultry.

Both in his speech and in a short interview afterward, Butler declined to target the handful of large meatpacking companies that many ranchers complain control most of the cattle markets.

He said the regulations his agency is developing must be effective, yet defensible in court. "I have no doubt that there's going to be litigation about these regulations."

Butler said the proposed regulations should be issued in a couple of months.

He also said the USDA/Justice Department task force will hold a series of workshops around the country to get comments from producers and others about what problems plague the livestock markets.

Earlier in the Stockgrowers convention, speakers pointed out the loss of nearly all of the independent producers in the poultry industry and many of the independent producers in the hog industry, as well as thousands of small, independent cattle feeders.

Butler urged farmers and ranchers to post their comments on the GIPSA Web site, www.gipsa.usda.gov

Outgoing Stockgrowers President Larry Nelson of Buffalo praised Butler, saying, "This is the first time in a long time we've heard somebody high up in USDA talking about the wants and needs of family farmers and ranchers."

Contact Steve Miller at 394-8415 or steve.miller@rapidcityjournal.com.

Belvidere rancher named president

  • Kenny Fox, a rancher from Belvidere, was elected president of the South Dakota Stockgrowers Association at the group's annual meeting in Rapid City on Friday. He has served in many capacities, most recently as vice president.
  • He replaces outgoing president Larry Nelson of Buffalo.
  • Shane Kolb of Meadow was elected vice president.
  • Three regional vice presidents were named: Bill Kluck of Mud Butte, Region 1; Bob Mack of Watertown, Region 2; and Marvin Jobgen of Scenic, Region 3.

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