Page 10 - Aug242023

SIXTEEN AGS CALL ON CONGRESS TO PASS The Midwest Cattleman · August 24, 2023 · P10
THE EATS ACT NOW
By Jennifer Shike
Iowa Attorney
General Brenna
Bird led 16 states
in a letter to U.S.
Congressional lead-
ership on Aug. 9,
urging the passage
of the Ending Agri-
cultural Trade Sup-
pression (“EATS”)
Act. The EATS Act OPTIMISM FOR CATTLE FEEDING RETURNS
seeks to preserve DWINDLES
states' rights by lim- release. “No other state should Cattle closing out in January will need prices
iting their ability to impose be dictating how Iowans farm, exceeding $188/cwt. to generate profits.
agricultural regulations on let alone California’s bureau-
other states. crats. The EATS Act stops Cattle feeding breakevens $300/head in July, and the
“As Attorneys General, we California’s overreach and soared for cattle placed in outlook is for positive returns
have expertise in defending gives state attorneys general July, according to the Live- to continue.
our States’ laws. The EATS the tools they need to fight stock Marketing Informa- Through the rest of 2023,
Act gives States the tools they for farmers and ranchers. We tion Center (LMIC). Cattle LMIC estimates breakevens
need to protect farmers and urge Congress to pass the that close out in January will to be between $150/cwt. and
ranchers. By explicitly autho- EATS Act and stand up for need an estimated closeout $176/cwt. The futures mar-
rizing courts to issue a prelim- livestock producers across the price exceeding $188/cwt. to ket has most contracts ahead
inary injunction while a case nation.” generate profits. of breakevens by $10 to more
is pending, the EATS Act en- This letter was preceded by Feeder steer prices have than $20/cwt, ensuring that
sures that food markets will a coalition of 11 governors, in- been the primary drivers cattle feeding returns will
not be disrupted while a court cluding Iowa Gov. Kim Reyn- to the cattle feeding return likely be profitable in 2023.
figures out whether a State’s olds, who wrote to U.S. Con- breakevens’ steady climb, LMIC is estimating the aver-
new regulation is lawful,” the gressional leadership in June LMIC noted. Feeder steers age per head return annual-
authors wrote in the letter. to encourage the passage of in Dodge City have increased ly will be close to $250/head,
The bill prevents California the EATS Act. since December of last year, like the 2014 average.
from regulating farmers and Iowa led the letter joined jumping from $172 to the The outlook for next year,
ranchers across the country by Arkansas, Idaho, Indiana, $180s, then the $190s, and however, is not as positive,
by preserving states’ author- Kentucky, Mississippi, Mis- then at $242/cwt. in July, a LMIC said, with breakevens
ity to regulate agriculture souri, Montana, New Hamp- 40% increase in eight months. surging to $188/cwt. This is
within their own borders, ac- shire, Oklahoma, South Car- During that time, breakeven very close to the current fu-
cording to a press release. olina, South Dakota, Texas, prices have increased 27%. tures Live Cattle February
California’s Proposition 12 Utah, Virginia, and West Vir- On a per head basis, LMIC contract price of $189/cwt.
requires out-of-state pork pro- ginia. estimated returns were as April’s Live Cattle contract
ducers to comply with strict In the letter, 20 states high as $400/head earlier offers a bit more breathing
farming regulations if they signed a Supreme Court brief this summer, but July’s close- room at $191/cwt., but that
want to sell their products in explaining their position on outs dropped nearly $100/ will mean feeder cattle prices
the state, the release pointed future pork production, Bird head due to higher costs, al- will need to stabilize if cattle
out. Because California ac- said. most all of which can be at- feeders are going to return to
counts for approximately 13% “Our States support let- tributed to the increase in profits seen in 2023.
of the nation’s pork consump- ting individuals buy the an- feeder price. Still, returns
tion, it has major influence imal products they want and are expected to be more than BEEF
over the whole market. to allow States to lawfully
“California needs to keep regulate livestock production clear that a State can regu- are hog wild. Justice Kava-
their hands off our bacon,” At- within their own borders. But late how livestock is produced naugh recognized that Cali-
torney General Bird said in a when a state decides to regu- within its borders but not in fornia’s requirements might
late outside its other States,” the authors even worsen animal health
borders, and to wrote. and welfare. And because
try to impose its Senator Roger Marshall, California buys about 13 per-
agenda on other (R- Kan.), along with other Re- cent of the nation’s pork, it is
states, that goes publican partners, introduced prohibitively expensive for
too far. Regula- the EATS Act in June. Other farmers to separate out Cali-
tions like Califor- senators backing the EATS fornia-approved pork from the
nia’s Prop 12 will Act include Senators Chuck rest. California’s burdensome
disrupt farmers’ Grassley (Iowa), Joni Ernst regulations will put small,
ability to feed (Iowa), Eric Schmidt (Mo.), medium, and possibly even
the nation. At a John Cornyn (Texas), Tom large pork producers out of
minimum, Prop Cotton (Ark.), Deb Fischer business. And American con-
12 will force high (Neb.), Kevin Cramer (N.D.), sumers won’t be able to afford
food prices on Tedd Budd (N.C.) and Bill Ha- bacon for breakfast,” the au-
"At a minimum, Prop 12 will force high food prices on the
American people. Congress should make clear that a state the American gerty (Tenn.). thors wrote.
can regulate how livestock is produced within its borders people. Congress “California’s radical-draft-
but not in other States,” the authors wrote in a letter to U.S.
Congressional leadership. should make ed requirements for farmers Drovers