Luján, Ernst Introduce Bipartisan, Bicameral Legislation to Bolster Local Meat Processing Capacity, Support Local Producers

Washington, D.C. – Today, U.S. Senators Ben Ray Luján (D-N.M.) and Joni Ernst (R-Iowa), members of the Senate Agriculture Committee, introduced the bipartisan, bicameral Expanding Local Meat Processing Act, legislation that would remove regulatory roadblocks to increase meat processing capacity and allow livestock auction market owners to invest in small and regional packing facilities. U.S. Representatives Mark Alford (R-Mo.), Jimmy Panetta (D-Ca.), and Dusty Johnson (R-SD) lead the companion legislation in the House.

This legislation directs the Secretary of Agriculture to amend the Packers and Stockyards Act to allow livestock auction market owners to hold ownership in, finance, or participate in the management or operation of a meat packing entity with a cumulative slaughter capacity of less than 2,000 animals per day or 700,000 animals per year. This cap would exclude investment in the top 10 meat packers.

Livestock auction markets, called marketing agencies selling on commission, are not currently able to own or invest, or participate in the management or operation of a packing plant or meat marketing business due to a Packers and Stockyards Act regulation. This legislation is essential in removing this unnecessary barrier in the cattle industry.

“Lowering costs for New Mexicans and increasing competitiveness for local producers will support local economies and livelihoods – especially in our rural communities,” said Senator Luján. “I’m proud to partner with Senator Ernst to reintroduce this bipartisan legislation to remove outdated regulations that hinder producers’ ability to increase livestock processing capacity. This is a priority for New Mexico, and I will continue to advocate for it in the Farm Bill.”

“Removing outdated regulations that hinder the livestock industry should be a no-brainer,” said Senator Ernst. “Allowing livestock auction markets to invest in small meat processing facilities will reduce market consolidation, decrease reliance on federal funding, and provide small producers with much-needed processing options. I’m proud to strengthen local food systems, increase competition, and ultimately lower meat costs for consumers through this effort.”

“The A-PLUS Act will modernize livestock regulations to ensure government policy is consistent with our 21^st Century marketplace,” said Rep. Alford. “For decades, restrictive rules have prevented smaller and local meat processors from competing for decades. By reforming these burdensome restrictions, we’re working to level the playing field, without sacrificing consumer safety. This commonsense legislation is a win for ranchers, auctions, consumers, and the entire livestock ecosystem. I’m proud to once again lead this bipartisan bill with my colleagues Congressmen Panetta and Johnson, as well as Senators Luján and Ernst.”

“Congress and the cattle industry agree there is a need to increase the U.S. beef packing capacity and to add more competitors to the marketplace,” said Charlie Rogers Owner and General Manager of Clovis Livestock Auction. “We greatly appreciate Senator Luján introducing this bill to remove an outdated regulatory barrier and allow local livestock auction owners to be part of the solution investing in new local and regional packing capacity.”

Full text of the legislation is available here. A one-pager of legislation is available here.

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