We do limited farm financial counseling, and we have a value-added pork marketing project called Patchwork Family Farms. Once again we're facing an economic crisis in agriculture. This is a direct result of failed Federal Farm policies that removed the safety net for family farmers, didn't address a supply management program or ensure fair and open markets for producers. The results of these policies have allowed a handful of corporations unfair control of entire sectors of agriculture. Livestock production contracts are touted as a way producers can eliminate market risks.
Producers get the debt, environmental liability and no way out.
One of the problems producers face is that they then become part of the captive supply. There is a movement to make USDA enforce the packers and stockyards act to the fullest extent possible which could prohibit packers from owning or feeding livestock and would force USDA to issue rules determining under what circumstances marketing agreements and formula-pricing are violations of the Packers and Stockyards Act. This would enhance the economic position of producers with fixed-price contracts as well a those producers selling on the open market. Value-added opportunities for producers are there. Somebody has been making a profit in the hog industry and there is no reason why it shouldn't be the producers.