A new report claims negotiated trade mandates don’t provide price discovery and market transparency as part of an analysis of the Cattle Price Discovery and Transparency Act of 2021.
Republicans on the Senate Agriculture Committee requested the analysis from the Texas A&M Agriculture and Food Policy Center. The report says mandated negotiated trade levels are expected to negatively affect cattle and calf prices. The researchers say the mandate will result in lower short-term fed cattle prices due to the increase in the costs of the feeder-packer cattle sale transaction.
The report concludes that, while more price discovery and market transparency can be achieved, forcing the movement away from alternative marketing arrangements via regional mandatory minimums for negotiated purchases will result in lower cattle prices and higher wholesale and retail beef prices.
The report comes as the National Cattlemen’s Beef Association hosts its annual convention this week, focusing on what policy position the organization will take on the issue.