Livestock Mandatory Price Reporting (CRS Report for Congress)
| Release Date |
Aug. 15, 2001 |
| Report Number |
RS20079 |
| Report Type |
Report |
| Authors |
Geoffrey S. Becker, Resources, Science, and Industry Division |
| Source Agency |
Congressional Research Service |
Summary:
On April 2, 2001, the U.S. Department of Agriculture (USDA) implemented the Livestock
Mandatory Price Reporting (LMPR) law. LMPR was passed as part of USDA's FY2000
appropriations law ( P.L. 106-78 ), to address the concerns of some livestock producers about low
prices, increasing industry concentration, and the availability of price information. Under the
previous, voluntary system, USDA reported data provided on a voluntary basis by meat packers and
processors on the prices they pay for animals. The new law requires large packers to report not only
negotiated sales, but also forward contract and formula arrangement transactions. Since
implementation, LMPR has provided new information and further disclosure on pricing, but the
system has experienced problems. On May 14, USDA announced an error in the computer program,
which incorrectly calculated published prices. Since then, USDA has announced corrections. On
August 3, USDA announced a new confidentiality rule, to go in effect on August 20. (This report
will be updated as needed.)
