NCBA Opposes Cash Pricing

[HDRider]

WASHINGTON (May 13, 2020) - National Cattlemen's Beef Association (NCBA) Policy Division Chair and South Dakota Rancher Todd Wilkinson today released the following statement in response to the bill introduced by Sen. Chuck Grassley (R-Iowa) and Sen. Jon Tester (D-Mont.) that would require a minimum of 50 percent of a meat packer's volume of beef slaughter be purchased on the cash market:

"Currently, cattle producers utilize a multitude of methods to market their livestock, including the cash market. Increased price discovery will benefit all segments of the cattle industry — that is why NCBA has been closely working with key stakeholders, industry experts, and our partners in academia to develop tangible means to meet that end. Any solution must not restrict an individual producer's freedom to pursue marketing avenues that they determine best suit their business' unique needs. Government mandates, like that being proposed by Senator Grassley, would arbitrarily force many cattle producers to change the way they do business. We will continue to work toward a more equitable solution and invite Senator Grassley, and other lawmakers interested in this conversation, to join us in the search for an industry-led solution based in free market principles."

https://www.ncba.org/newsreleases.aspx?NewsID=7252

 

[MDickinson]

Congress better start to realize their job is on the line if they continue supporting NCBA's agenda instead of the masses. NCBA may have the money, but we have the votes and something needs to be done immediately.

I'm all for free market principles when there is enough competition for it to actually be considered a free market, but that is not the case currently.

 

[Nesikep]

requiring cash purchases certainly sounds like a free market to me!
How #$%#$ surprising is it that NCBA opposes this.

 

[farmerjan]

Why in goodness sake they couldn't get together with the group that Corbitt Wall is promoting, asking for a MINIMUM 30 % cash trade, delivered in the 14 day window.... They might get more... but the big packers won't go for 50% and there isn't enough sway to get them to HAVE to agree.... and there will be nothing done. At least the 30/14 is a good basis that would not pressure the big packers to outright refuse it. There isn't anywhere near enough support for the 50% cash trade value.....

The bill is a joke because it is not doable at 50%....

NCBA needs to have their funding cut off at the knees. You start with something that might be palatable for everyone... so the big guys have to give some, and the little guys get some..... or you are just going to go up against a brick wall and get nothing accomplished again. The proposed bill is dead even with the mess this virus has created. It is too much to expect them to give up, and the NCBA opposing it is not going to go anywhere; all it is doing is making a big show. This is just a waste of time.

I am not pro big packer and with the virus - the plant shutdowns - the unions screaming for this and that - and the backlog of ready to kill animals that will get slaughtered and buried, and the packers will go buy it cheaper from other sources, we are going to get nothing. We need to go back to more regional supply and that will also solve some of the pricing as there will be more competition for the beef as there will be more local plants that can supply to the local demand. But until then, we need to get some smaller concessions that can be "won".... sometimes you have to take it back in small bites, just like they took it over in small bites.... gradually.

 

[HDRider]

Why in goodness sake they couldn't get together with the group that Corbitt Wall is promoting, asking for a MINIMUM 30 % cash trade, delivered in the 14 day window.... They might get more... but the big packers won't go for 50% and there isn't enough sway to get them to HAVE to agree.... and there will be nothing done. At least the 30/14 is a good basis that would not pressure the big packers to outright refuse it. There isn't anywhere near enough support for the 50% cash trade value.....

The bill is a joke because it is not doable at 50%....

NCBA needs to have their funding cut off at the knees. You start with something that might be palatable for everyone... so the big guys have to give some, and the little guys get some..... or you are just going to go up against a brick wall and get nothing accomplished again. The proposed bill is dead even with the mess this virus has created. It is too much to expect them to give up, and the NCBA opposing it is not going to go anywhere; all it is doing is making a big show. This is just a waste of time.

I am not pro big packer and with the virus - the plant shutdowns - the unions screaming for this and that - and the backlog of ready to kill animals that will get slaughtered and buried, and the packers will go buy it cheaper from other sources, we are going to get nothing. We need to go back to more regional supply and that will also solve some of the pricing as there will be more competition for the beef as there will be more local plants that can supply to the local demand. But until then, we need to get some smaller concessions that can be "won".... sometimes you have to take it back in small bites, just like they took it over in small bites.... gradually.

When negotiating ask for more than you expect. Ask for 50, take 30.

We need a multitude of small beef processors, and a more direct route to retail outlets. Over 90% of our beef comes from one of four mega processors. Each processor processes 30,000 head per day. They are our choke point.

Small processors can barely stay open during normal times, eking out a profit, and now that we need them so desperately, they are booked solid for months, and can't find qualified help

I am becoming convinced that our government wants Ag to move totally offshore. All the evidence, which grows every day, points to that. There is no other viable explanation

Small processors have been legislated out of existence. We need to make the need for small processors known to Congress. We need to end our dependence away from the big four mega processors.

Regulations and laws should not be barriers to entry. Regulations and laws should be barriers to dominance.

A small processor has to be profitable. That means changes in regulations and laws that have legislated them out of existence. I envision a cooperative effort between producers, processors and retail outlets.

Small beef producers need small processors. People need to know where food comes from

#SmallProducerSmallProcessor

 

[A.J.]

I need to do more homework on what all the NCBA does to see what they do that is actually good for producers, but it seems like they are usually on the wrong side of the fence on major issues that affect us. That's why when I get membership stuff from them in the mail wanting me to join, it goes straight to the trash.

 

[Ky hills]

I need to do more homework on what all the NCBA does to see what they do that is actually good for producers, but it seems like they are usually on the wrong side of the fence on major issues that affect us. That's why when I get membership stuff from them in the mail wanting me to join, it goes straight to the trash.

I do the same, seems like it would be foolish for me to pay $150 membership to something that is working against my business interests. The stupid checkoff is a rip-off as far as I'm concerned.

 

[Dave]

NCBA Opposes Cash Pricing........ is anybody surprised?

 

[farmerjan]

NCBA Opposes Cash Pricing........ is anybody surprised?

Nope not surprised.

 

[farmerjan]

HDRider; I ordinarily agree with ask for more, negotiate, then compromise. The thing is the big packers are going to just say NO to the 50% because they have so much contract beef supplies..... So the thing is to get them to come to the table and at least be willing to talk about the 30% and then hopefully in negotiations, ask for even more. It is a MINIMUM 30% that this group is asking for. With 14 day delivery...... so no putting it off into the sometime future.... Remember, JBS owners were some of the ones standing behind Trump at that Ag meeting.... they are snakes in the grass, it is well documented that they are crooked there in Brazil, and they have been "courted"
here in the US. We are going to have to work with them to some extent since they are so well entrenched.... but if we can get at least that minimum, and some of the strangulation regulations relaxed or changed to make it easier for some smaller plants to operate, then they are the ones that will be competing for the beef on the cash markets, and then even the ones that contract to the big plants will see what the ones on the open cash markets are getting.... if it is $.10 or $1.00 more per pound, the feed lot owners are going to be willing to sell more on the open markets.... competition.

There is no earthly reason that the plants were down to paying under $1.00 for fats and the box beef prices were up to over $450.00 ; from $250.00 in less than 2 months with the price of fat cattle dropping from $1.15 to under $1.00..... EXCEPT GREED and manipulation.
Granted this was on top of the c- virus situation.... but the whole "give more money to workers than they were making", so they could stay home because they were scared of MAYBE catching the virus.... and the unions in the middle.... has made it even easier for these companies to manipulate the prices.

I don't fully understand alot of this, but from what I see, and what I can grasp, we are in one he// of a mess if we don't get some sort of "fair trade" deal in place so they cannot totally manipulate this. The 30/14 seems to me to be the best starting place where we have a chance for it to at least get a foothold. Maybe, competition will help it to get better after than.

I think that one of our other posters, SBM.... something, I forget his "handle".... has a much better understanding of this and ships quite a bit of "quantity" of feedlot fed beef....

 

[HDRider]

I would never enter into negotiations and lead off with my real price.

 

[Aaron]

Covered this already on AgTalk, but will chime in here. Corbitt was told by contract feeders not to seek 50% because it will cut into their production contracts and hurt them, forcing them to align with the packers and declare war on the whole idea/promoters. At 30% the contract guys don't care and will just hang back as they can't declare support for any motion without paying for it with packer retribution. All of this was covered in Corbitt's feeder flash in late March if you are regular viewer.

Some of the feedlot guys on AgTalk that do a large percentage contract agreed - don't get greedy or we will have fight you.

And the packers can buy off every member of federal and state congresses if they really want too. An envelope with 10k in it means nothing to them when they are making a billion-dollars-a-week profit.

 

[farmerjan]

Thank you Aaron.... you explained it better than I could and I sure could not find where I had heard and read the reasoning. We have to work with them all, and the contract feeders can't piss off the packers or they will be shut out and then where will the feeder calves go..... Getting some would be better than nothing....and could open up things for some of the smaller guys to have other avenues to market their cattle. Especially if we get something pushed to get to more regional plants to stop this whole monopoly that is there with the supply being jammed up against the packers that can't get them moved through with this virus and the unions fighting.... and with people learning that it is not the farmers fault that the meat is not in the stores....

 

[Aaron]

Like I said to Steve a while ago, there are 3 things that US cattlemen need to do.

1) Fire Sonny Perdue. He has been in it long enough to know that the Packers and Stockyards Act must be enforced. Failing to do so just proves he is in bed with the packers. Handing out lump sums of bailout Corona cash does nothing to fix the systemic problems.

2) Implement refundable checkoff. Let producers decide who they want to support, rather than it being accumulated in a slush fund and divided out.

3) Implement 30/14 and bring some reality back into cash bids.

 

[HDRider]

Covered this already on AgTalk, but will chime in here. Corbitt was told by contract feeders not to seek 50% because it will cut into their production contracts and hurt them, forcing them to align with the packers and declare war on the whole idea/promoters. At 30% the contract guys don't care and will just hang back as they can't declare support for any motion without paying for it with packer retribution. All of this was covered in Corbitt's feeder flash in late March if you are regular viewer.

Some of the feedlot guys on AgTalk that do a large percentage contract agreed - don't get greedy or we will have fight you.

And the packers can buy off every member of federal and state congresses if they really want too. An envelope with 10k in it means nothing to them when they are making a billion-dollars-a-week profit.

That makes sense

It also points out the forces aligned against the producer.

 

[Aaron]

Covered this already on AgTalk, but will chime in here. Corbitt was told by contract feeders not to seek 50% because it will cut into their production contracts and hurt them, forcing them to align with the packers and declare war on the whole idea/promoters. At 30% the contract guys don't care and will just hang back as they can't declare support for any motion without paying for it with packer retribution. All of this was covered in Corbitt's feeder flash in late March if you are regular viewer.

Some of the feedlot guys on AgTalk that do a large percentage contract agreed - don't get greedy or we will have fight you.

And the packers can buy off every member of federal and state congresses if they really want too. An envelope with 10k in it means nothing to them when they are making a billion-dollars-a-week profit.

That makes sense

I also points out the forces aligned against the producer.

Yes, walk quietly and carry a stick.

Unlike RCALF which is running in screaming with a huge stick. It's types like those which will unleash the fury of the packers and feeders.

Imagine if the packers got a hold of RCALF's membership list and told their feeders that they don't buy these cattle under any circumstances? Feeders start asking for names and addresses of cattle for sale at stockyards or they don't buy there?

 

[MDickinson]

Here is an interesting article for Drovers to publish. Like most of Kate's articles a pretty controversial viewpoint. https://www.drovers.com/article/kate-miller-new-legislation-then-what

 

[HDRider]

Here is an interesting article for Drovers to publish. Like most of Kate's articles a pretty controversial viewpoint. https://www.drovers.com/article/kate-miller-new-legislation-then-what

She is the lady I have been going back and forth with on FB. I don't agree with her, but she is a talented communicator.

https://www.facebook.com/miller.kathr

 

[MDickinson]

Here is an interesting article for Drovers to publish. Like most of Kate's articles a pretty controversial viewpoint. https://www.drovers.com/article/kate-miller-new-legislation-then-what

She is the lady I have been going back and forth with on FB. I don't agree with her, but she is a talented communicator.

https://www.facebook.com/miller.kathr

I don't agree with her at all. If you read through other articles it seems all she does is disagree with anything the cow calf guy tries to do to improve their position in the supply chain. Then again she is a "meat processing professional" but likes to tout that she is a producer... Pretty tough to be subjective when one side is writing you a paycheck IMO.

 

[HDRider]

Here is an interesting article for Drovers to publish. Like most of Kate's articles a pretty controversial viewpoint. https://www.drovers.com/article/kate-miller-new-legislation-then-what

She is the lady I have been going back and forth with on FB. I don't agree with her, but she is a talented communicator.

https://www.facebook.com/miller.kathr

I don't agree with her at all. If you read through other articles it seems all she does is disagree with anything the cow calf guy tries to do to improve their position in the supply chain. Then again she is a "meat processing professional" but likes to tout that she is a producer... Pretty tough to be subjective when one side is writing you a paycheck IMO.

She is a very effective communicator. She lines up squarely on the side of the packer.

She had taken an article on JBS, which I think I posted on CT, and edited out the bad stuff to paint them in a very favorable light.