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AdvertisementBelt tightens, strangles cattlemenIn these economic times, everyone is tightening belts. But occasionally, the belt-tightening can cut off circulation, strangling and crippling a vital part. The Kansas Department of Agriculture has done just that. KDA has cut funding for state-reported livestock markets in Pratt and Salina as of July 1--just two days from the publication date of this issue. They are the only two remaining markets reported by KDA, after the department cut funding for reporters at Junction City and Syracuse several years ago. Dodge City is the sole livestock auction in Kansas that will be reported, but only because funding for that market reporter comes from the U.S. Department of Agriculture. The cost-cutting measure saves KDA a little over $10,000 each year. We understand budget constraints. We know there is a need to save money. However, in KDA's budget of $10.4 million, $10,000 seems like a bargain. In fact, $10,000 only represents .96 percent--not quite 1 percent--of the budget. What do the cattlemen of Kansas get for that $10,000? An unbiased source reporting prices. In other words, the reports are a fair, reliable evaluation of the market in those areas. Cattlemen can read the market reports in High Plains Journal and other sources, as well as online. But perhaps even more important is the impact those market reports have on the Chicago Mercantile Exchange Feeder Cattle Index. Feeder cattle from those two Kansas markets represent not quite 5 percent of the total volume in the Feeder Cattle Index. Cattlemen are concerned and rightly so. The Kansas Livestock Association immediately met with KDA, but time is short. To our knowledge, no public announcement was made of the funding cuts. High Plains Journal only learned of the decision last week, from its sources in the industry. Had KDA shared the information with the people who use the markets, there might have been more time to work through the issue and find a solution or compromise. By putting our heads together, we can find a way to continue to fund market reporting. There is little time left, but it can still happen. By cutting this funding, KDA has cut off Kansas cattlemen and their representation on the CME index, as well as stifled unbiased price reporting. Producers should call their state representatives and let their voice be heard. There is a solution, but all parties concerned need to find the answer soon. Holly Martin can be reached at 1-800-452-7171 ext. 1806 or by e-mail at hmartin@hpj.com. Advertisement
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