Captive Supply

Captive Supply Reform Act

The Captive Supply Reform Act has been introduced in both the Senate and House of Representatives.

The Captive Supply Reform Act would fix the problems of market manipulation without banning use of captive supplies and forward contracts. Captive supplies are cattle controlled through contract or owned by the packer.

The bill would restore competition in the market for livestock contracts by

• Requiring a fixed base price on contracts and marketing agreements
• Requiring trading of contracts in open, public markets to which all buyers and sellers have access

Representatives Stephanie Herseth Sandlin (D-SD) and Barbara Cubin (R-WY) introduced H.R. 2213 on May 9, 2007. Read WORC’s news release.

Senator Mike Enzi (R-WY) introduced S. 1017 March 28, 2007 . For more information, see WORC’s news release.

Read statement by Sen. Enzi. (pdf 16k)

Resources

Taking Back the Livestock Markets (pdf 227k)

Myths and Facts (pdf 93k)

Chronology (pdf 81K)