United Producers Inc. (UPI), which operates livestock marketing facilities throughout the Midwest, has submitted written comments opposing a proposed rule by the USDA’s Grain Inspection, Packers and Stockyards Administration.
“We are extremely concerned about the proposed rule as it relates to regulations regarding livestock contracts, arbitration use in contracts, and establishing criteria for the Secretary to consider in determining whether an undue or unreasonable preference or advantage has occurred in violation of the Packers and Stockyards Act,” said Dennis Bolling, president and CEO, United Producers Inc.
UPI’s concerns about the proposed rule focus on regulations that would negatively impact its members and its operations. These concerns include:
If the definition of competitive injury is changed, the ensuing frivolous lawsuits would be devastating and result in a one‐price‐fits‐all bid from packers. This type of pricing does not recognize variation between animals.
If alternative marketing arrangements (AMAs) are restricted or eliminated, it will severely limit UPI’s members’ ability to manage risk, finance production and compete with one another to negotiate premiums.… Continue readingRead More »