This week, the USDA launched a pilot Cattle Contracts Library which seeks to give cattle producers more pricing transparency. Following input from stakeholders, including Farm Bureau, USDA has finalized the Cattle Contract Library pilot program which will give producers a mechanism to find key terms, conditions and volumes by which cattle are contracted.
The Consolidated Appropriations Act of 2022 established the pilot Cattle Contract Library within the USDA’s Agricultural Marketing Service (AMS.) Under this pilot, AMS will collect, maintain and report aggregated information on contracts between cattle producers and packers for purchases of fed cattle.
The library will include different types of contracts and contract terms. This includes premium schedules, discount schedules, delivery and transportation, terms and payments, financing, risk sharing and other financial arrangements. Additionally, AMS will also report on the number of head of cattle purchased under the terms of a contract.
Upcoming Stakeholder Webinars
AMS will be conducting a series of stakeholder webinars to inform producers how to use this new tool. The first webinar is scheduled for Friday, February 8 at 11 a.m. The live dashboard will begin on February 6.