FARM GROUPS SEEK REPEAL OF LAW

A new livestock pricing law that went into effect May 29 to help livestock producers on the price they receive from meatpacking companies has backfired.

The law has created havoc in the cash market for slaughter-ready hogs, cattle and sheep, said state Rep. Peter Myers, R-Sikeston, a member of the House Agriculture Committee.

"It looked simple when we passed the measure," said Myers. "We meant well, and hoped to benefit the small and medium-sized livestock producers."

The law requires meatpackers to pay producers uniform prices for livestock on the hoof, and to make the prices public.

The law was intended to protect the small producers from being paid less for their livestock than larger producers. A provision in the bill prohibits livestock purchasers from discriminating in the prices they offer Missouri producers.

"But what has happened is that major meatpackers are refusing to negotiate with producers on a cash market price for their livestock," said Catherine Hanaway, R-Des Peres. "In fact, producers are telling us that the marketing laws is devastating our livestock cash market."

Major farm organizations have called on legislators to help solve the problem as soon as possible.

"We can't really wait until next year," said Myers. "Our farmers and livestock producers need this done now."

Following the implementation of the new law, some major meatpacking companies pulled out of the Missouri cash market, and livestock sales have plummeted in the state.

Thirty-six Republican House members have sent a letter to Gov. Bob Holden urging him to deal with the issues "sooner than later."

No special session item

The governor has said he has no plans to include the livestock pricing law in the session that is expected to start Sept. 12, saying he wants a consensus on the problem and solution before asking lawmakers to consider emergency legislation.

Still, House Republicans said the need to deal with issue was critical for agriculture. The letter to the governor contained the signatures of a number of area representatives -- David Schwab, Rod Jetton, Jason Crowell, Lannie Black, Patrick Naeger and Mark Richardson.

A group of Libertarians have also called on Holden to seek an emergency repeal of the "failed livestock market law," said Chip Taylor, a spokesman for the Missouri Rural Libertarian Caucus.

"It's a classic case of unintended consequences," said Taylor. "A bill meant to help farmers is doing them in."

Taylor says the solution is clear: "Missouri livestock farmers are worse off since this law took effect than before it took effect. It should be repealed."

The Libertarian Party is the state's third largest political party, and Taylor said, "We have members statewide, and we advocate supporting Missouri's agriculture economy by eliminating oppressive taxes and repealing burdensome regulations on Missouri farmers.

Charles Kruse, president of the Missouri Farm Bureau, said the quickest possible way to resolve the issue is to repeal the law in a special session.

"Missouri farmers can't wait six months for the next regular session of legislature," said Kruse, who is a farmer in the Dexter, Mo., area. "By that time, some farmers will be forced out of business."

The Farm Bureau and a dozen other Missouri organizations have urged farmers to sign petitions requesting action in a special session. The petition is available at all county Farm Bureau offices, said Kruse.