A brand new report from USDA’s Financial Analysis Service reveals the meatpacking business has consolidated considerably prior to now 40 years. In its Focus and Competitors in U.S. Agribusiness report, ERS notes that 34% of pork was processed by the 4 largest firms in 1980, however by 2019 that share had almost doubled to 67%. The development was much more pronounced for steers and heifers, rising from 36% to 85% focus, with virtually all the improve occurring between 1980 and 1995. Information from poultry producers solely goes again to 1995 however reveals a lot less-pronounced consolidation than different meat sectors.
The report attributes a lot of the shift to technological advances permitting bigger, extra environment friendly processing vegetation. To maintain a relentless circulate of livestock for these bigger vegetation, firms started creating more-integrated provide chains and inspiring farmers to specialize. Hog and poultry producers are extremely built-in, however cattle stay principally diversified amongst smaller herds. ERS notes that over 750,000 farms and ranches elevate cattle, whereas solely 15,000 contract to boost chickens and 6,000 contract to boost hogs.
Whereas consolidation is commonly related to decreased competitors and better client costs, the report finds that added economies of scale and innovation may truly decrease costs. Nevertheless, over the previous decade, spreads between wholesale and farm values have trended up, notably in beef. ERS notes there have been various new entrants to the processing market prior to now few years, which can assist decide whether or not these tendencies proceed or reverse.
NCBA asks federal decide to totally strike down WOTUS rule
In a lawsuit filed by the Nationwide Cattlemen’s Beef Affiliation within the U.S. District Court docket for the Southern District of Texas, the group has requested a federal decide to strike down the Biden administration’s Waters of the USA rule in its entirety. The rule was successfully gutted in Might by the Supreme Court docket in Sackett v. EPA case, which held that EPA had overstepped its statutory authority by making an attempt to control extra land than the regulation permits.
Within the wake of Sackett, the Biden administration introduced plans to difficulty a revised WOTUS rule by the tip of the summer season, which an EPA official described as “surgical” adjustments. NCBA believes minor tweaks would violate the Supreme Court docket’s ruling, and nothing lower than a full repeal is so as.
“In Sackett v. EPA, the Supreme Court docket unanimously dominated that the EPA had overstepped its authority below the Clear Water Act,” mentioned NCBA Chief Counsel Mary-Thomas Hart. “A full rewrite of the Biden administration’s WOTUS definition is the one path to adjust to the Sackett determination. NCBA is looking for abstract judgment in our lawsuit towards the Biden WOTUS rule and urging the Southern District of Texas to strike the rule from the books.”
SNAP error price bounce attracts sharp bipartisan response
An sudden improve in error charges for Supplemental Diet Help Program funds drew an uncommon bipartisan rebuke from the leaders of the Home and Senate Agriculture Committees. After a two-year hiatus because of the pandemic, the SNAP error price report confirmed the overpayment price rose 59% between 2019 and 2022. Almost 10% of recipients had been improperly decided to be eligible for SNAP advantages in fiscal yr 2022. Alaska had the worst overpayment price at almost 57%, whereas South Dakota had one of the best at 3.07%.
Shortly after USDA launched the newest knowledge, Home Ag Chairman Glenn “GT” Thompson (R-Pa.) and Rating Member David Scott (D-Ga.), and Senate Ag Chair Debbie Stabenow (D-Mich) and Rating Member John Boozman (R-Ark.) issued a joint assertion.
“The pandemic induced new challenges for USDA and states alike, who took measures to make sure entry to SNAP,” the group mentioned. “Nevertheless, the nationwide error price as reported at present is unacceptable and threatens the integrity of this system. We urge governors and directors to promptly set up corrective motion plans and proceed to work with USDA to handle the basis causes of those errors to enhance their program operations, stay accountable to the taxpayer, and most significantly, make sure that advantages are focused to the people who find themselves probably the most in want.”
SNAP eligibility is likely one of the most politically divisive points on this yr’s farm invoice reauthorization debate. In early June, Congress agreed to regulate eligibility for sure populations in a bipartisan settlement to boost the debt ceiling. Nevertheless, some lawmakers proceed to hunt adjustments equivalent to further work necessities.
