NCC Welcomes Call for GIPSA Rule Analysis

US - The National Chicken Council (NCC) has welcomed the statement by Secretary of Agriculture Tom Vilsack that USDA will conduct a cost-benefit analysis of the rule on livestock and poultry production and marketing proposed by the Grain Inspection, Packers and Stockyards Administration (GIPSA).
calendar icon 20 December 2010
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NCC Senior Vice President and Chief Economist, Bill Roenigk, commented: "A serious and robust analysis of the economic impact of the proposed GIPSA rule is long overdue. The rule will have a profound, far-reaching and costly impact on the poultry and livestock industries, and it should not have been put forth without an appropriate analysis of its impact on farmers and ranchers, industry and consumers."

Industry members had criticized the lack of an adequate economic analysis in the proposed rule, published on 22 June. Mr Vilsack told a meeting of stakeholders in the issue: "A far more rigorous cost-benefit analysis will be conducted" before the rule is finalised. A study commissioned by NCC pegged the cost to the broiler industry alone at more than $1 billion over five years, far more than the $100 million level of impact that would qualify the proposed rule as a major enactment requiring a comprehensive economic analysis. Studies commissioned by the livestock industry also predicted billions of dollars in impact.

The comment period on the rule closed on 22 November. Mr Vilsack said that USDA would form teams to study the thousands of comments filed by members of the public, including farmers, consumers, industry employees and industry groups. Mr Vilsack declined to speculate how long the review process would take but said the rule as published on 22 June was a draft and could be extensively changed before being finalised.

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