President’s Perspective

sharpranches@aol.com

can we find a silver lining?

By OCA’s President Tom Sharp

As we struggle to survive the social and economic chaos being presented by the current COVID-19 global pandemic, let’s ask, “Will there emerge a “silver lining” that our cattle industry can learn from and develop new actions to make needed changes to benefit our future?”

Sometimes it requires a disaster or a crisis event to shake the conscience and come together in efforts to change or create a better system. Clearly, we have been given that opportunity now.

What We Know

• People still need to eat.

• Agriculture production is “Essential”. • Consumer panic buying can quickly clear a retailer’s meat shelves (people want “real beef”). • “Fake meat” shelves remain stocked and we have seen it is not the consumer preference. • COVID-19 has shifted beef consumption from restaurant dining to the retail market channels. • The beef industry will not survive in a “Zero-sum” market environment, where if one segment profits another segment must lose (remember, as an industry: “We’re all in this together”).

• Packers need to keep packing (operating reliably), Producers need to be able to stay in business (profitably) and beef supply chains need to keep the market supplied.

• From live cattle to the beef dinner plate, it is a twoyear process (breeding, calving, weaning, feeding, packing). • Unlike many commodities, beef production cannot be turned on and off like a manufacturing line. • Cattle need to go to market when they are ready to go to market (not put into storage inventory). • Fair and functioning cattle markets are vital to the sustainability of our industry.

Short Term Actions (so far)

• Immediate assistance relief for cattle producers to keep ranches and the U.S. industry operating.

• USDA Market Facilitation Program (MFP) inclusion of beef commodities for disaster assistance.

• OCA introduced Market Assistance policy resolution at the February 2020 NCBA Convention. • NCBA Board of Directors requested USDA MFP assistance in March 2020. • CARES Act relief assistance is on its way. • SBA loans and Payroll Protection Program assistance. • Expedited investigation, oversight and finding conclusion of requested USDA and Department of Justice Antitrust Division investigation of beef market volatility and possible inappropriate market/pricing influence occurrences extending back to last summer’s Holcomb, Kansas pack

ing plant fire and recent COVID-19 boxed beef versus live beef price disparity which can provide the cattle industry recommendations of needed changes for fair cattle mar- ket functioning. • OCA has requested action on this investigation directly to

Secretary of Agriculture Sonny Purdue. • Other state cattlemen associations are also collectively joining these efforts.

• Commodity Futures Trading Commission study of the influence of speculators on the CME Group’s Live and Feeder Cattle futures contracts with recommendations for fair and functioning cattle markets.

• Consideration of greater transparency in Livestock Mandatory Price Reporting (MPR) for the inclusion of formula pricing data and the importance of negotiated cash trade value.

Long-Term Sought Changes • Implementation of above USDA, DOJ and Commodity

Futures Trading Commission investigation findings and recommendations which serve to better protect, pro- mote fairness, and stabilize livestock markets, price basis methodology, risk diversification and other identified safeguards which increase functionality and fairness amongst cattle industry segments. • Increased meat-packing plant facility locations benefiting beef supply chain reliability. • Food safety improvement actions benefiting animal health security and animal disease traceability.

I want to assure the membership of the Oregon Cattle- men’s Association that our OCA staff, officers and district vice-presidents are united in our efforts. We hear you and we are determined to aggressively advocate and lead actions for fair and functional industry reform at the national level, serving the best interests of our Oregon cattlemen, members, and county associations.

Undoubtedly, these are exceedingly difficult and uncer- tain times that we are all dealing with as individuals, families and as an industry. Cattlemen have traditionally demonstrated toughness, determination, and resilience as problem solvers when faced with adversity. I have no doubt we will do it again as we learn from this current chaos and pursue improvement changes beneficial to our cattle industry. In the meantime, best of luck processing those new spring calves and preparing for turn out season. Stay safe and healthy! •