Smith Leads Fight to Return Fairness to Meat Markets

Press Release

Congressman Jason Smith (R-MO), joined by Senators Roger Marshall (KS) and Mike Rounds (SD) and Representative Dusty Johnson (SD) introduced the Feed America by Incentivizing Rural (FAIR) Meat Packing Act to ensure a level playing field for our nation's cattlemen and to return to fair prices for both cattlemen and consumers. The FAIR Meat Packing Act creates two tax incentives to facilitate the formation of small- and mid-sized meat processing facilities allowing cattle producers to compete for better prices in the marketplace.

"Our cattle producers are some of the hardest working men and women in the country," said Rep. Smith. "They deserve access to fair markets. Unfortunately, if the mega meat packers continue their strangle-hold on the market, our hardworking producers don't stand a chance. This legislation creates choice and competition in the meatpacking industry so that our hardworking cattle producers don't have to be reliant on the big packers, helping them get better value for their cattle. Ultimately, better meatpacking options will also bring down prices for consumers at the meat counter."

Four meatpacking firms control over 80 percent of all the beef slaughtered in the United States, leaving most cattle producers with a take-it-or-leave-it choice on the price for their cattle. Early on in the coronavirus pandemic, the price of meat at the counter soared but producers saw the price of cattle fall to historic lows. Already struggling with a collapsing supply chain, these circumstances pushed many producers to the brink of survival.

"The success of the Kansas economy relies heavily on the cattle industry at every step from pasture to plate," said Senator Marshall. "We must ensure robust competition at the packing level by providing butcher shops and medium sized packers more opportunity for success. With USDA providing substantial funding to expand small and medium sized packing capacity, it's simply logical to help reduce the construction and operational costs so the formation and expansion of small and medium sized meat processing facilities is feasible for more folks in the industry."

"In our hearing this week, we heard from witness testimony that said there is opportunity for new capacity but Congress needs to provide a variety of tools to ensure long-term viability. I'm proud to join Rep. Smith in introducing the Feed America by Incentivizing Rural (FAIR) Meat Packing Act to provide modest tax incentives to small processors looking to compete with the big four. There's no silver bullet but a number of reforms continue to move us in the right direction -- the FAIR Meat Packing Act is one of those reforms." - Rep. Dusty Johnson

"I want to thank Senators Marshall and Rounds and Representative Johnson for joining me in this effort," said Rep. Smith. "A thriving agriculture economy is essential for the success of farmers, ranchers and small businesses across Missouri, and I'm hopeful this legislation will help ensure a level-playing field for our hardworking ranchers."

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