Date:  November 28, 2005
FOR IMMEDIATE RELEASE

Contact: Chase Carter, Executive Director 402.817.4443
P.O. Box 6486 - Lincoln, NE 68506 - www.competitivemarkets.com  
     
     
OCM Applauds Captive Supply Reform Legislation
     

Lincoln, NE ~ The Organization for Competitive Markets applauds the introduction of H.R. 4257 in the U.S. House of Representatives by Reps. Earl Pomeroy (D-ND); Barbara Cubin (R-WY) and Stephanie Herseth (D-SD).

H.R. 4257 would amend the Packer and Stockyards Act, requiring that base prices be fixed at the time a forward contract is written. Under the legislation, producers will have the contract pricing information prior to shipping cattle rather than days later. The measure will also require that such contracting be subject to a transparent competitive bidding process. No restrictions are imposed on sellers.

"This is a solid piece of legislation that makes needed clarifications to the Packers and Stockyards Act," noted Randy Stevenson, OCM Vice-President. "Opponents are already claiming the legislation will prohibit forward contracting. That accusation is patently false and should be dismissed as the weary rhetoric used by the packing industry about captive supply reform we’ve become accustomed to. In reality, this legislation will encourage a healthy restoration of competition to markets by requiring they be bid for competitively and transparently. There’s no better disinfectant than sunshine. Those who shun doing business in the light of day usually have something to hide."

"These requirements are very similar to standards applied to Wall Street," continued Stevenson. "Opponents need to explain why these market enhancements are good enough for the stock market but not good enough for the cattle market."

"OCM applauds the U.S. Representatives who brought this legislation forward. They are true economic patriots who obviously put the interests of U.S. cattle producers first and are standing against the tide of influence peddling so rampant in politics today. OCM supports this legislation wholeheartedly."
     

The Organization for Competitive Markets is an agricultural free market and competition think tank working for honesty, prosperity and economic liberty for farmers, ranchers and rural communities.