Grassley said the increase was needed because the U.S. Department of Agriculture had underestimated by more than a million dollars the cost of running the mandatory price reporting program. The money was included in a military spending bill. Accurate and reliable market information is critical for independent operators to stay competitive.
Transparency can help prevent insider deals that undercut fair competition.
The Livestock Mandatory Price Reporting Act sponsored by Grassley and Sen. Tom Daschle of South Dakota was passed last year. It requires the federal Agriculture Marketing Service to collect the market data and make it immediately available via the Internet.