April 28, 2022

Mr. Bruce Summers

Administrator

Agriculture Marketing Service

U.S. Department of Agriculture 

1400 Independence Ave. SW 

Washington, DC 20250 

Dear Administrator Summers:

The Beef Alliance writes to you in response to a Notice of Trade dated April 11, 2022, entitled 

“USDA to Host Listening Session on Cattle Contracts Library Pilot Program Development”.

Although the statutory language exempts the development of the Cattle Contracts Library (CCL)

from the regular procedure of notice and comment, we greatly appreciate USDA’s decision to engage 

in stakeholder meetings and allow comment on the implementation of this pilot program.

Founded by leaders in the cattle feeding industry, the Beef Alliance is a group of innovative cattle 

feeding producers that represent approximately 30 percent of total U.S. fed cattle supply. The Beef 

Alliance came together with a vision to set high standards in the cattle feeding segment. As a group, 

the Beef Alliance works collectively to address issues of common concern through a commitment 

towards continuous improvement to meet consumer demand for high-quality, safe, and affordable 

beef that is raised in a transparent and sustainable manner.

As we all are aware, the U.S. beef cattle industry is incredibly complex and diverse. Nonetheless, 

when looking for options to address a short-term swing in the dynamics of the marketplace, the Beef 

Alliance opposes a top-down approach that would interject Government interference and force a 

wholesale change to the way cattle are marketed. 

Consumer demand for beef today is strong, but this has not always been the case. The transition from 

the 1990’s generic, commodity beef product was facilitated through the value of discovery – through 

the increased use of value-added negotiations, commonly referred to as Alternative Marketing 

Arrangements (AMAs). These voluntary, business-to-business arrangements allow for premiums to 

be earned for producing a specific quality of product under agreed to terms. If the terms of these 

agreements are not met, discounts are applied. The result of these innovative AMAs has been a 

higher quality, more consistent beef product, which, in turn, has led to the highest levels of beef 

demand in the past 30 years. The Beef Alliance would also note that AMA’s generally key off of 

consumer preferences. AMAs are designed to produce a product with a trait that the consumer desires 

while allowing the feeder/producer to obtain value for such desired consumer preference, whether it 

be Certified Angus Beef, processed sourced verified, natural, non-hormone treated, etc. If the CCL 

creates a dynamic which discourages the use of AMAs, unintended consequences will result in a lost 

premium to the feeder and producer but also to the consumer.
Though the Beef Alliance has serious concerns regarding the unintended effects of a CCL and would 

prefer that a Library not be established, we understand the intense pressure behind the development 

of a CCL by many in the beef cattle industry, As a result, the Beef Alliance has engaged in the 

discussions and process surrounding enactment to ensure the CCL is developed in a manner that 

minimizes harm across the entire beef cattle value chain. The Beef Alliance strongly supports the 

termination of this pilot program on September 2023 because it will allow those effects, whether they 

be positive of negative, to be scrutinized before any more permanent action is taken. It is important to 

note, that our fear of these unintended consequences will be felt by all down the chain particularly the 

most vulnerable—from the cow/calf producer to the cattle feeder. 

A major concern of the Beef Alliance centers on the change in dynamics and leverage that can occur 

by providing additional market information which only the most sophisticated segment of the cattle 

industry will likely utilize—the beef processing and retail sectors. Indeed, it is our understanding that 

the Swine Contract Library, which the Consolidated Appropriations Act of 2022 directed the agency 

to reference in the development of the CCL pilot program, is little used by producers. Thus, the Beef 

Alliance requests USDA AMS not mirror the Swine Contract Library when developing the CCL pilot 

program.

The Beef Alliance holds the highest regard to the privacy of all cattle market participants, and 

strongly supports the strictest protection of proprietary business information. In establishing and 

maintaining the CCL pilot program, USDA-AMS should adhere to the relevant statutory and 

regulatory requirements, as well as longstanding Agency guidance, related to confidentiality, as 

required by section 251 of the Agricultural Marketing Act of 1946 (7 U.S. Code § 1636) and required 

by section 223 of the Packers and Stockyards Act, 1921. 

Additionally, the CCL should focus on numerical market transaction contract information related to 

pricing mechanisms. No single premium/discount schedule, private financing arrangements, or 

ownership of cattle should be published. Contract types included in the library should be aggregates 

of individual contracts with similar terms. In the event an individual contract is reported to the 

Agency but cannot be reasonably summarized with similar contract types, the contract should be 

deemed noncompliant with the Agency’s confidentiality rules and not be reported to the public or 

maintained in the CCL.

Once again, we greatly appreciate USDA for implementing a process that allows the Beef Alliance, 

and other beef industry stakeholders, the opportunity to participate in the rulemaking process. The 

Beef Alliance respectfully requests that the agency also allow for written comments on any final or 

proposed Cattle Contract Library. 

The Beef Alliance stands ready to be a trusted resource for the agency as it develops the Cattle 

Contract Library Pilot Program and welcome any opportunity to visit with you and your staff during 

this process.

Sincerely,

Scott Whitefoot

Chairman

Beef Alliance