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Expert Economist Tells Oklahomans GIPSA Rule Would Hurt State, Country

Wednesday, November 10, 2010

(American Meat Institute)

The author of an economic impact analysis of the U.S. Department of Agriculture’s (USDA) controversial livestock marketing rule today in an op-ed piece in The Oklahoman said that the proposed rule will eliminate jobs in Oklahoma and throughout the United States.

According to John Dunham, president of John Dunham & Associates, the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) livestock marketing rule could dismantle partnerships between livestock producers and meat packers. If enacted, the rule will cost Oklahoma 2,200 jobs, with lost wages totaling almost $56 million and the total economic impact surpassing the $258 million mark.  He said that if the rule moves forward, the United States will lose 104,000 jobs, along with approximately $14 billion in total revenue, much of which is spent in small towns and rural areas.

“It’s hard to imagine how a rule that imposes additional costs on rural America could help the farm economy in any way. In fact, it is hard to fathom why the federal government would promulgate a policy that would cost this country any jobs given the current state of the economy,” said Dunham.

The editorial pointed out that according to USDA’s own economic data from 2007, altering the status quo in the manner proposed by the new rule could cost consumers and producers $60 billion over the next 10 years. Oklahoma residents, specifically, would end up paying almost three and a half percent more (totaling $25.6 million) for their meat products.

“From an economic and practical viewpoint, when I look at the scope of the proposed rule and the amount of damage it will inflict on America's meat and poultry industry, which generates $832.4 billion annually to the U.S. economy, or roughly six percent of the entire gross domestic product, it convinces me that the rule should not be implemented. Oklahoma simply cannot afford to lose more jobs and more tax revenues,” Dunham concluded.

Dunham’s study was commissioned by the American Meat Institute.  Results may be viewed at http://www.themarketworks.org/ by clicking on the GIPSA Rule button.

To view the editorial, click here: http://www.meatami.com/ht/a/GetDocumentAction/i/64168

 

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