South Dakota Cattle Groups Support Johnson’s “Cattle Contract Library”

Washington, D.C. – Last week, the Cattle Contract Library Act (H.R. 5609), introduced by Ranking Member of the Livestock & Foreign Agriculture Subcommittee Dusty Johnson (R-S.D.), passed the U.S. House by 411-13.

South Dakota agriculture groups expressed support for H.R. 5609 following passage:

"Ranchers and feeders across the state agree that there is a need for more cattle market transparency including reporting details of all cattle marketing arrangements, and there is no reason to wait on getting this signed into law," said South Dakota Farm Bureau President and American Farm Bureau Federation Vice President Scott VanderWal. "We are very pleased that the House overwhelmingly voted in support of this bill and hope for quick passage in the Senate."

"South Dakota cattle producers have increasingly utilized Alternative Market Agreements to add value to their beef product. There has not been an adequate reporting system to keep up with the changes in marketing as the AMA's have become more prevalent," said Eric Jennings, President, South Dakota Cattlemen's Association."The Cattle Contract Library Act addresses the need for market transparency for contracted cattle sales. South Dakota Cattlemen's Association thanks Representative Johnson for his hard work in achieving passage of this important piece of market reform in the U.S. House of Representatives."

H.R. 5609 creates a library for cattle contracts within the U.S. Department of Agriculture's (USDA's) Agriculture Marketing Service Department. Currently, cattlemen are unaware of contract terms being offered by packers, leading to a decline in leverage for smaller producers during price negotiations. This is the first cattle market bill to pass out of the Agriculture Committee in over a year and follows the recommendation of the July 2020 Boxed Beef & Fed Cattle Price Spread Investigation Report. The investigation recommended the implementation of a cattle contract library.

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