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Analyst says livestock markets need to be fixed sooner rather than later

Many stakeholders in the beef industry are calling for a solution to the price imbalance in the beef industry. And a livestock market analyst says desperate times call for desperate action. Corbitt Wall of DV Auctions says, “Well, it’s embarrassing that we have to go to the government for help on this,” he says. “Because it’s something the industry has gotten into. “

He says there are a few bills that have been proposed in Congress to establish a mandatory minimum for traded spot trading. There are two bills in the Senate, one sponsored by Iowa Senator Chuck Grassley and the other by Nebraska Senator Deb Fischer. Accompanied by Fischer’s bill is a House bill recently introduced by Missouri MP Vicky Hartzler. “I am totally in favor of the end result of what these two bills are aimed at,” he said.

Wall tells Brownfield that at this point legislation is needed to keep ranchers in business. “If we don’t, we’re going to get to the point where not only will we not have normal demand and price discovery in our feeder cattle,” he says. “This will have an impact on the calves and yearlings that your small producers provide. “

Wall says that while he likes Grassley’s legislation for its aggressive push to increase spot traded trade, the Fischer Bill offers more flexibility. The Fischer bill also calls for increased transparency in reporting sales information, which would be cataloged in a contract library.

AUDIO: Corbitt Wall, DV Auctions