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Mandatory
Price Reporting
The mandatory price reporting (MPR) provision
in the 1999 Livestock Mandatory Reporting Act expired on
September 30, 2005. Pork producers should urge their
lawmakers to support the reauthorization of the MPR for a
period of 5 years including the three consensus pork industry-specific recommendations to make the
system more transparent, timely, and effective.
The hog market has changed dramatically in recent years.
Less than two percent of all hogs are now sold at terminal
markets; furthermore, the numbers of hogs that are sold
under some sort of market contract continue to increase. MPR
was advocated because producers believed it would improve
market transparency and price discovery. NPPC’s Competitive
Markets Working Group -- Mandatory Price Reporting
Subcommittee has worked during the past year to consider
changes needed to make MPR more transparent, timely, and
effective.
Issue Paper
NPPC Past President Jon
Caspers, a pork producer from Swaledale, Iowa, testified
June 22, 2005, before the Senate Agriculture, Nutrition
and Forestry Committee urging members to support the
five-year reauthorization of mandatory price reporting.
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