Farm Progress

GIPSA answers coming this fall

GIPSA changes may be known by late fallValue-added premiums a concernReview process currently underway

Larry Stalcup

April 13, 2011

2 Min Read

It may be late fall before potential changes to the Grain Inspection Packers and Stockyard Administration (GIPSA) are made following extensive review of tens of thousands of public comments on the GIPSA proposals that angered many last year.

 “We definitely support premiums (for high quality cattle). That will play heavily on my mind,” said Under Secretary of Agriculture Edward Avalos, discussing the controversial GIPSA rules changes.

Avalos, who oversees USDA marketing and regulatory programs, including GIPSA, said last Saturday during the Texas and Southwestern Cattle Raisers Association 134thannual convention in San Antonio that once reviewed, there will be a clearing process at USDA and through the Office of Management and Budget.

“I would say it will be late fall, and that’s just a guess,” said Avalos, addressing when the final GIPSA ruling may be announced. “We’re in the process of reviewing and categorizing all the comments. Once we do that, our economist and his team will develop a cost-benefit analysis.”

GIPSA hearings fueled much criticism from many groups, including the National Cattlemen’s Beef Association. Many fear the disruption of value-added calf programs that promote higher quality cattle.

Some believe GIPSA proposals requiring meat processors to report every value-added transaction or face legal action would force some packers to forego such producer programs, pay a single price for cattle and pocket premiums themselves.

Avalos said the status of value-added programs would be highly reviewed by USDA before a final ruling is made. “I have a lot of friends who work very hard to develop a high quality animal with high demand,” he said. “From what I can see, we’re not looking to impact that.

“I need to make it crystal clear – we have a lot of people for the rules as they are proposed, a lot of people against the rules as they are proposed and a lot of people who like parts of the rules but not other parts. We’re going to take all these comments very seriously.”

He said he wasn’t surprised at the large number of comments. “I wasn’t shocked at all,” he said. “People resist change. People worry about change. I understand that.”

However, the current GIPSA rules are virtually the same as they’ve been since about 1930 or longer “and we were criticized by the General Accounting Office for not making changes that are current for the industry,” said Avalos.


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