On the recordFebruary 11, 2011
Thank you, Mr. Chairman. Madam Speaker, I rise in support of the resolution on regulations and jobs. In particular, I would like to discuss the USDA's Grain Inspection, Packers and Stockyards Administration's, or GIPSA's, proposed rule governing livestock and poultry marketing practices. This proposed rule should be carefully considered for its unintended consequences, particularly for those it is supposed to protect--livestock producers. In the proposed rule, GIPSA is attempting to overturn numerous judicial decisions by stating, Finding that the challenge, act or practice adversely affects or is likely to adversely affect competition is not necessary in all cases. In other words, a plaintiff would no longer have to show actual harm when challenging a packer's activity. The rule would also ban packer-to-packer livestock sales and restrict dealers to representing a single packer. While intending to strengthen the cash market, these changes are likely to actually disrupt orderly market transactions. It will have far-reaching implications for livestock procurement, impacting producers, packers, processors, retailers, and consumers. It far exceeds congressional intent in the 2008 farm bill. It lacks a credible economic analysis and is the result of a flawed regulatory process. A subcommittee hearing last year demonstrated that concerns are widespread in the livestock community, and concerns are bipartisan here in Congress.





