Ownership

I found this article interesting.<br />n<br />n<a href="http://www.billingsgazette.net/articles/2007/08/24/news/wyoming/21-meatfamily.txt" >Family ranchers fighting growing meatpacking industry</a><br />n<br />n<blockquote>Eric Nelson, a fourth-generation rancher and farmer who operates a feedlot here, isn't looking for more government cash like many farmers are. But he's still hoping for a little help when the Senate debates a farm bill this fall.<br />n<br />nNelson and many other family ranchers in the Midwest and West are hoping Congress can help them fight the gradual consolidation of the meat industry, which they say is hurting their business. A handful of large meatpacking companies slaughtered 80 percent of steers and heifers in 2005, up 30 percent from 20 years ago.<br />n<br />n"We just want a level playing field, an environment in which we can be profitable," Nelson said. "Give us true competition and we'll take care of ourselves."<br />n<br />nRanchers who own smaller operations have long sought changes in the law that would help their operations stem growing competition from the larger companies. And with new political dynamics in Congress, that could happen this year.</blockquote><br />n<br />nThis is interesting because its all about packer ownership of cattle. I've talked about this before and the Packer and Stockyards act passed almost 100 years ago prevents packers from owning cattle before they slaughter them. The government has never enforced this law since the packers have gotten really big and diversified and have other arms that "own" the cattle instead of the packer themselves and the law never took into account forward contracting which the packer do now. I feel the Packers and Stockyards act could have included these items but the packers paid off the government to not do that which has led to the situation now.<br />n<br />nSo, should Congress expand the law to include some of the new ways the packers have found to own the cattle before they slaughter them? I don't think it will hurt but I'm not on the end of the business that sells to the packers. I haven't talked to enough feeders about this to really understand the situation from their angle. The story talks about one guy that says it would hurt his bottom line if the law were changed so he couldn't sell when he wanted to the packers. I have to at least acknowledge this point and wonder if there are more out there with this opinion or is it an isolated one.<br />n<br />nI always like when my preconceptions are challenged like this. I'm not saying this article has changed my mind but it has opened me up to hearing another opinion about this situation. I can't imagine not allowing the packers to own cattle before slaughter would hurt but there is another side to this story, as most stories have and i enjoy opening my mind and hearing it.<br />n<br />n<strong>Ignorance is the primary source of all misery and vice. Victor Cousin</strong>