(August 26) – The United States Cattlemen’s Association (USCA) responded to a letter from the leadership of Certified Angus Beef (CAB) addressed to “Fellow Beef Industry Stakeholders” and regarding “Questions from The Brand About The 50-14 Legislation“.
The open letter specifically asked three questions regarding the 50-14 or “spot” market legislation, including:
- How will negotiated grids be handled under the proposed requirements: considered part of the negotiated spot market given prices can be negotiated weekly without a written or implied contract with a packer or excluded from the spot market due to their grid structure?
- Why are dairy and dairy crossbred cattle, cattle over 30 months of age and foreign-born cattle excluded from the proposed 50% spot market purchase requirement and how do these excluded populations factor into the 50% spot market purchase calculation for a plant?
- What will the impact be on value-added programs such as age-and-source verified, GAP-certified, NHTC, etc., and associated feeder calf prices, if a feeder’s ability to secure a fed-cattle market is not assured prior to placing the cattle on feed?
USCA’s Marketing and Competition Committee worked to provide answers to the above questions and looks forward to further discussing this legislation with CAB leadership, and other industry stakeholders. Read our letter here.