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PUBLIC HEARING SUMMARY

LIVESTOCK PRODUCTION STUDY COMMITTEE

December 14, 1995
First of Three Public Hearings

MEMBERS PRESENT

PUBLIC HEARING IN BRIEF

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

  1. 1. Procedural Business.
  2. 2. Persons Attending the Public Hearing.
  3. 3. Public Comments and Discussion.

SUBCOMMITTEE BUSINESS

1. Procedural Business.
a. The Livestock Production Study Committee agreed to form subcommittees to conduct public hearings around the state. The first public hearing was held at the ISU Extension Building in Audubon, Iowa on December 14, 1995.
b. Co-chairperson Representative Jim Meyer called the public hearing to order at 2:15 p.m. He read the charge of the Committee and invited persons to present testimony. The charge provides that the Committee is to consider the increasing degree of vertical integration of the livestock market by packers and processors, including threats to economic competition, independent production, and consumer protection; and market practices engaged in by packers, processors, or buyers which increasingly threaten open and fair markets by establishing arbitrary and inconsistent pricing without public disclosure or price discovery mechanisms, including price differences based on the time of delivery, and transaction.
c. Adjournment. Co-chairperson Meyer thanked persons for attending the public hearing. The meeting adjourned at 3:35 p.m.
2. Persons Attending the Public Hearing.
Persons attending the public hearing included Mr. Gene Weise, Iowa Cattlemens Association; Representative Jack Drake; Mark D. Friedow, Iowa Poultry Association; Mr. Gordon Fordyor, Iowa Cattlemens Association; and Mr. Mark Saylor, KCIM.
3. Public Comments and Discussion.
The subcommittee heard testimony and engaged in discussion with persons attending the public hearing regarding a number of issues, including vertical integration, marketing practices, the importance of the livestock industry to the state, livestock production, and legal restrictions affecting the livestock industry. The following comments were presented:
a. The issues presented for consideration by the Study Committee might be better addressed by the federal government.
b. The egg production industry has developed a vertically integrated economic structure, which is growing in this state. The unique historic development of the egg production industry should be considered when proposing legislation affecting livestock. Egg processors work closely with egg producers.
c. Iowa's livestock industry represents an essential part of Iowa's economy.
d. Price discovery is an important issue affecting livestock producers.
e. Competition among packers is important. Congress should investigate packer practices. Iowa needs more cattle packing plants in the state, and Iowa should encourage their location in the state.
f. The state should enact legislation that encourages livestock production in the state, including a pastureland tax credit, support for value-added agricultural products, and amending laws in chapter 9H (Iowa's corporate farming law) which discourage livestock producers from competing on a level playing field.
g. Better price discovery mechanisms are important and advances in communications technology now enable producers to access important price information.
h. The enactment of 1995 Iowa Acts, chapter 195 (House File 519), relating to the regulation of animal feeding operations, represents compromise legislation which should be provided an opportunity to work.
i. Independent livestock producers are essential to this state's livestock industry. Livestock producers should not be prohibited from networking in order to compete with larger livestock producers who have access to capital.
j. The state should not erect regulatory barriers which prevent producers from obtaining capital and competing on a level playing field. Iowa's corporate farming laws (Chapter 9H) prevent smaller producers from obtaining capital which is accessible to larger producers like Murphy Family Farms which meet the criteria for a family farm.

OTHER INFORMATION FOR THIS COMMITTEE:

| Charge | Members | Staff | Final Report |

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