Livestock Mandatory Reporting - Bringing Transparency to the Marketplace

From USDA:

Posted by Craig A. Morris, Deputy Administrator of the AMS Livestock, Poultry and Seed Program, on January 20, 2015 at 9:30 AM

The purpose of the program is to provide marketing information for cattle, swine, lamb, and livestock products that can be readily understood and utilized by producers. USDA Photo Courtesy of the National Organic Program.

The Livestock Mandatory Price Reporting (LMR) Program was established to expand pricing information available in the livestock industry. Part of USDA Market News data, the information is distributed by the Agricultural Marketing Service (AMS) and allows analysts to dive in head first and fulfill all of their number crunching ambitions.

The purpose of the program is to provide marketing information for cattle, swine, lamb, and livestock products that can be readily understood and utilized by producers. Livestock Mandatory Reporting encourages competition in the marketplace by vastly improving price and supply data, bringing transparency, breadth and depth to market reporting. The program gets its authority through the Livestock Mandatory Reporting Act of 1999, which must be reauthorized by Congress every five years. The program is up for reauthorization in September 2015.

Thousands of business transactions every day rest on the outcome of Livestock Mandatory Reporting data. From the small farmer looking to market a few head of cattle to the giant packer looking to increase their profits, USDA Market News is an invaluable resource.

Here is a real life example of how it works. Last year was one for the record books. Beef cutout levels climbed at an alarming rate, and it was clear that something unusual was happening.  Cattle were in tight supply, which means trimmings were also in tight supply. In the winter months, ground product and end meats – such as chuck or round roasts – are in demand as consumers prepare hot chili and stews.  In order to meet this demand, packers found themselves grinding primal cuts and selling them as ground beef causing ground beef prices to reach record highs.

Suddenly, it seemed that ground beef was something everyone should have been paying close attention to all along.  You asked, we answered. We now publish a section on the Weekly Cattle and Beef Summary that includes information about the effect of ground beef and trimmings on the National Boxed Beef Comprehensive Cutout. We also expanded the National Weekly Comprehensive Item Summaryto include additional ground beef and trimming pricing information.

In a voluntary reporting situation like we utilized in the past in, which meatpackers voluntarily provided pricing information to AMS, finding the cause of price fluctuations would be much more difficult. The difference with Livestock Mandatory Price Reporting, however, is that by collecting and disseminating such a detailed amount of data, we are able to quickly reveal exact reasons for why changes in the marketplace are taking place.

This year marks the 100^th anniversary of USDA Market News.  Over the years, our reports have evolved but our service and dedication to the agricultural industry remains our focus.  Over the course of 2015, we will continue to provide information about Market News.  The USDA Market News Portal is available at www.marketnews.usda.gov where you can explore all of our Livestock Mandatory Reporting reports.

Livestock Mandatory Reporting vastly improves livestock price and supply data to encourage competition in the marketplace by increasing the amount of information available. The program helps bring transparency, breadth and depth to market reporting.

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USDA-Supported Small Business Assistance Provides a Ladder to Prosperity for Enterprising Hispanic Families

USDA Blog Post:

Posted by Vicki Walker, USDA RD State Director, Oregon, on April 11, 2014 at 2:00 PM

First-time small business owner, Nabor Ceja, is one of 26 Hispanic and Latino entrepreneurs in Oregon’s Columbia River Gorge receiving business start-up and development services funded through the Rural Business Enterprise Grant program.

As a first-time small business owner, Nabor Ceja, has learned a lot since opening his restaurant, Chicken & Teriyaki, in Hood River, Oregon. Like many immigrants, Mr. Ceja wasn’t familiar with local processes and requirements for things like business registration, tax numbers, insurance, permits, licensing, hiring and employer obligations. With limited English proficiency, just asking the different agencies and offices for help was a significant barrier.

Mr. Ceja is not alone. Thirty percent of the population in Hood River County is Hispanic. Until recently, however, there were no small business assistance providers meeting the unique needs of the Hispanic community.

Gabriel Muro is the business services coordinator at a social services nonprofit called The Next Door. “I have met so many people who start businesses using their personal accounts, or who don’t get their W-9 forms submitted in time to demonstrate legal status and claim important exemptions. All of these things are done differently in Mexico.”

These items–and many more–each affect the bottom line and can have a significant impact on whether a small business can actually stay in business.

Economic growth in any rural community is, for its own sake, vitally important. It is especially so in Hood River County’s Hispanic community, where 50 percent of families live in poverty even though many came to the area specifically for the work. In the region’s fruit orchards, however, the employment and paychecks are often seasonal, and there are plenty of lean times no matter how hard one is willing to labor.

Many see a solution in growing Hispanic business ventures to create new income and employment opportunities. To support emerging entrepreneurs and the many benefits they bring to the overall community, The Next Door started a program called Promoviendo Prosperidad, or Promoting Prosperity. Through the program, Gabriel Muro is providing 26 Hispanic and Latino business owners and entrepreneurs with culturally appropriate, Spanish-language start-up and development services including business planning, guidance with registration and permit processes, access to financing options, application assistance for energy incentive programs, and much more.

The program received funding support from USDA Rural Development’s Rural Business Enterprise Grant (RBEG) program and the National Association of Latino Asset Builders.

“Promoviendo Prosperidad is a perfect example of how USDA is investing in locally led, partnership efforts to provide pathways out of poverty and grow the middle class in rural America,” said USDA Rural Development State Director Vicki Walker.

The local small business development center and economic development district have also joined the effort as partners to provide additional expertise.

Nabor Ceja is grateful for the guidance, which has helped him successfully apply for state energy incentives, advertise and network through the local chamber of commerce, and source fresh, local produce at affordable prices.

He’s also capitalizing on what makes his restaurant unique. You see, Mr. Ceja not only dishes up authentic Mexican food, as do several other eateries in the immediate vicinity, he is also the only nearby business serving teriyaki. With business technical assistance through Promoviendo Prosperidad, he’s now developing a label so he can bottle his top-secret teriyaki sauce for retail sales.