The USDA's Agricultural Marketing Service released the final rule for reauthorizing the Livestock Mandatory Reporting Act on Thursday. The rule will be published in the Federal Register on Friday and take effect July 15.
"The implementation of LMR will allow for more accurate and timely reporting of most wholesale and retail meat prices and increase transparency in the reporting of livestock sales," said American Farm Bureau Federation President Bob Stallman. "The LMR also offers new market information on pricing, contracting and demand conditions, which will greatly benefit livestock producers."
Originally approved in 1999, LMR requires meat packers to report the prices they pay producers for food animals. Although packers have been voluntarily reporting prices since the law expired in September 2005, reestablishing the mandatory program will increase accuracy and efficiency as well as allow USDA to audit reports.
"During this time of economic crisis for many pork producers, having mandatory price reporting helps producers make business and production decisions that will allow them to get the best price for their hogs," said National Pork Producers Council President Bryan Black.
Although the new rule does not address all the recommendations put forth by R-Calf USA, according to Bill Bullard, CEO of R-Calf there are a number of improvements included in the rule.
"All in all, this is indeed an improvement over what we had," Bullard said. "This rule should provide us with additional information that’s important in determining the timely value of livestock."