The Board of Directors of the Texas Cattle Feeders Association
met on Jan. 22 and took a position on 
packer feeding and captive supplies.

 Here is a letter that TCFA Chairman Paul Engler sent 
to TCFA members today describing 
the position that the TCFA Board took.

 If you have questions, please call Communications Dept.
at (806) 358-3681 or e-mail info@tcfa.org

January 23, 2002

TO:                     TCFA Members

 FROM:               Paul Engler

 SUBJECT:         Board Action on Packer Feeding and Captive Supply

The TCFA Board of Directors met yesterday and took an aggressive stance designed to pro-actively address a major problem facing cattle feeders.  Here's the position the Board adopted:  

TCFA supports actions that increase marketing alternatives and protect cattlemen's 
independence while opposing government restrictions on ownership, control and 
marketing of cattle, such as the Johnson amendment.  TCFA will meet with packers 
to address marketing problems to improve cattle feeders' bargaining positions and 
will evaluate the effectiveness of these meetings by July 1, 2002 .

 While this position was adopted with only one dissenting vote, your Board of Directors did not arrive at this decision quickly or easily.  The Johnson amendment, since its addition to the Senate Farm Bill, has created a lot of discussion within the TCFA membership.  Officers, directors, Market Committee members and staff have all received numerous phone calls and personal visits from members who have an opinion.  Packer feeding and captive supply are complex issues and TCFA is addressing them with a reasoned approach.   

This process began when the Market Committee met January 15 to review TCFA policy regarding packer feeding and captive supply and then brought its recommendations to the Board.  Yesterday, during the Board meeting, TCFA members who are not on the Board had an opportunity to express their opinion and the issue was soundly and thoroughly discussed by Board members.   

While the Board felt packer feeding and captive supply must be addressed, they weren't convinced that the Johnson amendment is the proper way to do so.  The intent of the Johnson amendment is to regulate most marketing options and ownership of cattle.  Our competitors-poultry and possibly pork-would be exempt from the law.  The Board's sense is that the cattle industry must first step up and solve its own problems.  If that effort fails, we will seek alternatives.   

The strength of TCFA is our policy-making process, where the appropriate committee has time to discuss the issue and make recommendations to the Board, and the Board thoroughly weighs all sides and arrives at a decision.  That procedure served us well in addressing this issue.  Meetings with packers begin next week.  The TCFA Board, officers and staff will continue to make this our No. 1 priority.

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