New Study Says GIPSA Hurts Industry

New Study Says GIPSA Hurts Industry

Private firm study predicts job loss, increased meat prices, reduced demand for beef.

An economic impact study conducted by John Dunham and Associates, Inc. concludes that the Obama Administration's proposed rule on livestock marketing could leave approximately 104,000 additional Americans without jobs.

Consequently, the study reports a $14 billion reduction in the National Gross Domestic Product. The U.S. Department of Agriculture's Grain Inspection, Packers and Stockyards Administration proposed the rule in June in response to a request made by Congress.

The new study says retail meat prices would increase 3.33% at a national level, which would result in a 1.68% drop in consumer demand.

National Cattlemen's Beef Association President Steve Foglesong said family farmers and ranchers would witness a reduction in beef demand and profitability as a result of this rule. He said it is unfortunate that this study was even conducted but USDA left no choice. USDA did not conduct a comprehensive economic analysis and has indicated to 115 members of Congress calling for an economic study that one will not be conducted.

The study, commissioned by the American Meat Institute, is available online in an interactive format that aggregates economic impact on national, state and congressional district levels.

To view the complete study and the impact of a specific state or congressional district, go to For more information on the proposed rule, visit NCBA's Web site.


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