WASHINGTON (June 28, 2011) – National Farmers Union (NFU) member Dennis Jones testified before the U.S. Senate Committee on Agriculture, Nutrition, and Forestry today regarding the current state of the livestock industry in the U.S. Jones is a fourth-generation family farmer from Bath, S.D. and is a member of a pork producer cooperative.

 

“We are very pleased that Dennis could come in and share his story with the U.S. Senate, giving lawmakers a firsthand account of his struggles in the livestock industry,” said NFU President Roger Johnson. “Concentration has left the livestock markets uncompetitive. The top four packers control 81 percent of the beef market and 65 percent of the hog market. That leaves producers like Dennis at a severe disadvantage, basically having to accept whatever price the packers give him for his livestock.”

 

Jones provided several possible policy options to help livestock producers during difficult times.

 

“Implementing the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule would go a long ways towards ensuring that producers like Dennis can negotiate on a level playing field with large processors,” said Johnson. “Beyond that, funding for conservation programs such as the Environmental Quality Incentives Program (EQIP) would help livestock producers install and maintain beneficial conservation practices. The Senate should also consider the implementation of a system of grain buffer stocks, similar to the petroleum reserve that we have, which would help flatten the large price spikes and would make livestock production more conducive to long-term investment.”