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MINUTES

LIVESTOCK PRODUCTION STUDY COMMITTEE

March 25, 1996
Second of two meetings

MEMBERS PRESENT

MEETING IN BRIEF

Minutes prepared by Kregg Halstead, Legal Counsel,
Organizational staffing by Doug Adkisson, Legal Counsel

  1. Procedural Business.
  2. Summaries of Public Hearings.
  3. Member Discussion and Motions.
  4. Written Materials Filed with the Legislative Service Bureau.

COMMITTEE BUSINESS

1. Procedural Business.
Call to Order. Co-chairpersons Senator Priebe and Representative Meyer called the final interim meeting of the Livestock Production Study Committee to order at 11:00 a.m., Monday, March 25, 1996, in Committee Room 22 of the Statehouse in Des Moines, Iowa.
Adjournment. The meeting recessed at 12:10 p.m., Monday, March 25, 1996.
2. Summaries of Public Hearings.
a. Mr. Doug Adkisson of the Legislative Service Bureau reviewed with the members of the Committee written summaries prepared by the Legislative Service Bureau of public hearings of the Committee that were held in Audubon, Iowa, on December 14, 1995, in Grinnell, Iowa, on December 15, 1995, and over the Iowa Communication Network originating from the STARC Armory located in Johnston, Iowa, on February 26, 1996.
b. Co-chairperson Priebe stated that the Iowa Communication Network (ICN) should be used more frequently by members of the General Assembly.
c. Co-chairperson Meyer expressed his concern that the summary of the public hearing in Audubon, Iowa, did not fully reflect comments by the public relating to the need to amend Chapter 9H (Iowa's corporate farming law) to allow the formation of certain agricultural cooperatives promoting value-added products. Representative Salton noted that Senate File 2135, amending Chapter 9H to allow networking between producers, was recently passed by the General Assembly and signed into law by Governor Branstad.
3. Member Discussion and Motions.
a. Members of the Committee discussed issues relating to price reporting and price discrimination by livestock packers. Senator Kibbie discussed the need to pass legislation addressing these issues. He moved that the Committee recommend the enactment of legislation to establish the creation of a price reporting system that includes disclosure of all prices paid for the purchase of livestock, and an amendment to Chapter 551 prohibiting packers from discriminating in the prices that they offer to different producers, with price differences permitted based on differences in quality, acquisition costs, and delivery time.
Co-chairperson Meyer responded by noting that these issues might be better addressed at the federal level, and expressed a concern that Iowa may lose the packing industry if regulations applicable to Iowa packers are not applied uniformly to other states. He stated that packers have expressed a willingness to voluntarily report information. Representative Salton noted that seventy-five percent of Iowa cattle are processed out of state, and that enacting legislation at the state level cannot reach packers located out of state. Representative Greiner questioned the kinds of factors which would be used in providing a price difference. Senator Zieman noted that an examination of the issues is warranted by the federal government. Representative Mundie stated that price discrimination is occurring, but does not expect the United States Congress to pass legislation. After conducting a vote, Senator Kibbie's motion failed, having the approval of a majority of members of the Senate and not having the approval of a majority of the members of the House of Representatives.
b. Co-chairperson Meyer moved that the Committee pass a resolution (LSB 2189IC) to urge the federal government to ensure fair and competitive market practices for the purchase of livestock from producers by packers and livestock buyers. A copy of this resolution is attached to this report.
Co-chairperson Priebe moved to amend the resolution on page 2, lines 24 through 26, by striking the words "ensure fair and competitive market practices for the purchase of livestock by packers and livestock buyers", and inserting the following: "support a price reporting system that includes the disclosure of prices paid for the purchase of livestock each week to be reported by the United States Department of Agriculture;". After conducting a vote, Co-chairperson Priebe's motion passed, having the approval of a majority of members of the Senate and the House of Representatives.
c. Senator Giannetto moved to amend the resolution and to include as a Committee recommendation provisions which request members of the Legislative Council to meet with legislative members representing other midwestern states at functions conducted by organizations such as the National Conference of State Legislatures in order to ensure a coordinated legislative response, if the federal government does not take action during the 1996 calendar year. He further moved that if the federal government does not take action, that the Iowa General Assembly consider these issues during the next legislative session. Senator Giannetto also moved that the Legislative Service Bureau be provided with discretion to draft language to comply with intent of the motion. Co-chairperson Priebe stated that the Legislative Service Bureau would distribute the resolution to Committee members prior to the resolution being forwarded to the leaders of the General Assembly. After conducting a vote, Senator Giannetto's motion passed, having the approval of a majority of the members of the Senate and the House of Representatives.
4. Written Materials Filed with the Legislative Service Bureau.
Market Access Survey Results. Prepared by Dr. John D. Lawrence, Extension Economist, Iowa State University.
LSB 2189YH

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