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New Economic Impact Study on Livestock Rule

by 5m Editor
22 October 2010, at 9:37am

US - The proposed USDA Grain Inspection, Packers and Stockyards Administration’s (GIPSA) rule would have far-reaching negative economic impacts on US livestock producers and US consumers according to a study released yesterday.


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"“The estimated rate of producer job loss in rural America would be high. When folks are forced out of the livestock industry, they don’t come back."
Sam Carney, NPPC President

The study, conducted by John Dunham & Associates and commissioned by the American Meat Institute (AMI), estimates that 104,000 Americans would lose their jobs as a result of this rule. Livestock producers in rural America would be especially hard hit, losing as many as 21,274 jobs. In addition to the job loss associated with this rule, fewer producers would result in a decrease in supply and an increase in the cost of meat. This cost increase, estimated at 3.3 per cent, would be felt by consumers at the grocery store.

“The estimated rate of producer job loss in rural America would be high. When folks are forced out of the livestock industry, they don’t come back,” said NPPC President Sam Carney. “Given this study, it is now more important than ever for USDA to conduct a thorough economic analysis so that producers understand the true cost of the Administration’s proposed regulations.”

In a time of record job loss nationally, a rule that would lead to 3,707 job losses in Iowa would only make economic matters worse. The study shows that a staggering 31,609 workers would lose their jobs in the top 10 pork producing states alone.

Earlier this month, NPPC applauded a bipartisan letter from 115 House lawmakers to US Agriculture Secretary Tom Vilsack requesting that a complete economic analysis of the rule be made so that lawmakers could understand the full impact on the US livestock and poultry industries. The USDA proposed regulations failed to include an analysis of the total impact the rule would have on rural America.

You can view a comprehensive map containing detailed information on the economic contributions of the meat industry by state and congressional district by clicking here.