An economic impact study conducted by John Dunham and Associates, Inc. concludes that the Obama Administration’s proposed rule on livestock marketing could leave approximately 104,000 additional Americans without jobs.
Consequently, the study reports a $14 billion reduction in the National Gross Domestic Product. The U.S. Department of Agriculture’s (USDA) Grain Inspection, Packers and Stockyards Administration proposed the rule on June 21, 2010, in response to a request made by Congress. However, National Cattlemen’s Beef Association President (NCBA) Steve Foglesong said the rule goes beyond the intent of Congress and serves as another example of government overreach into private business.
The study found that retail meat prices would increase 3.33 percent at a national level, which would result in a 1.68 percent drop in consumer demand. Foglesong said family farmers and ranchers would also witness a reduction in beef demand and profitability. He said it is unfortunate that this study was even conducted but USDA left no choice. USDA did not conduct a comprehensive economic analysis and has indicated to 115 members of Congress calling for an economic study that one will not be conducted.
Source: National Cattlemen’s Beef Association