Livestock Price Reporting Issues

Publication Date: August 2001

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Agriculture, forestry and fishing

Type:

Abstract:

On April 2, 2001, the U.S. Department of Agriculture (USDA) implemented the Livestock Mandatory Price Reporting (LMPR) law. LMPR was passed as part of USDAÕs FY2000 appropriations law (P.L. 106-78), to address the concerns of some livestock producers about low prices, increasing industry concentration, and the availability of price information. Under the previous, voluntary system, USDA reported data provided on a voluntary basis by meat packers and processors on the prices they pay for animals. The new law requires large packers to report not only negotiated sales, but also forward contract and formula arrangement transactions. Since implementation, LMPR has provided new information and further disclosure on pricing, but the system has experienced problems. On May 14, USDA announced an error in the computer program, which incorrectly calculated published prices. Since then, USDA has announced corrections. On August 3, USDA announced a new confidentiality rule, to go in effect on August 20. (This report will be updated as needed.)