LIVESTOCK PRICING BILL NEEDS QUICK FIX

A new state law that requires meatpackers to pay producers uniform prices for livestock on the hoof has backfired, and concerned lawmakers have been scurrying about in hopes of doing something about it.

The question is how soon the law can be repealed or changed, since it is costing farmers dearly. The U.S. Department of Agriculture estimates the negative impact to Missouri farms and rural communities since it took effect May 29 already is $7 million to $20 million. To make matters worse, after the law was implemented some major meatpacking companies pulled out of the Missouri market, and livestock sales have plummeted.

The Legislature passed the law in hopes that small producers of livestock would get more for their slaughter hogs, cattle and sheep that are similar in quality to those sold to packing houses by big producers. Traditionally, producers who deliver large quantities of livestock to packers are paid more for their animals than are farmers who deliver a few head of livestock at a time.

While the Legislature had good intentions of helping small producers, it apparently didn't pay enough attention to the ramifications of the law. What happened is, instead of paying uniform prices, packers are refusing to buy livestock from the small producer, depending instead on large producers for their supplies.

The concerned lawmakers have a solution at hand in the form of a proposed agreement between several groups including cattle and pork producers, Missouri Farm Bureau and meatpacker giant IBP. The proposed compromise more closely mirrors the federal Packers and Stockyards Act, which determines unfair trade practices and price discrimination violations.

Gov. Bob Holden had been reluctant to put the issue on the agenda for the special session that begins Sept. 12 unless a consensus on a solution was reached by all parties. It appears the compromise offers that consensus, and on Friday the governor announced that the matter will be taken up during the session.

Small, independent livestock producers can thank the governor for his decision, and when the session convenes the Legislature should resolve the matter with diligence.

Missouri's livestock producers need help, and they need it now.