With the XL Foods beef recall getting some major attention nightly on the news some producer issues are coming to the surface.
AFSC has temporarily decided to suspend the fed cattle CPIP program. In the short term, feedyards will be unable to participate in the government-run risk management program.
Jennifer Wood, Livestock Price Insurance Coordinator, AFSC, stated to RealAgriculture.com:
“The challenge is that we are forecasting cattle prices into the future and we must take into account events that potentially increase pricing risk. The beef recall has forced us to make sure we understand the short term price risk. We are re-evaluating the situation and will hope to reinstate the CPIP Fed program today (Sept 26).”
When told about the news, several producers indicated to RealAgriculture.com that they are upset with the the apparent quick decision made by AFSC. One angry feedyard owner stated to us:
“This makes me mad. In times of huge volatility we need these kinds of programs.”
In our discussion with Jennifer Wood, AFSC, it did sound like the program would be back online today.
Realistically, the one-day shut down will have limited impact on producers.
RealAgriculture.com will update you as this story develops.