Economic Impact of Grain Inspection, Packers and Stockyards Administration Proposed Rule

Americans enjoy the safest, most abundant, and most affordable meat supply in the world. The market works well in the U.S. because buyers and sellers of livestock have shifted away from the old commodity approach and now work as partners with meat companies to deliver to consumers what they want, whether it’s lean, prime, raised without hormones or derived from a certified breed like Angus.

A broad new proposed rule from USDA’s Grain Inspection, Packers and Stockyards Administration would discourage these partnerships and even make them more subject to lawsuits. If the proposal is finalized, the industry may be forced back to the days of commodity meat – a bad move for the industry, for our competitiveness in the international export arena – and a bad move for consumers, who will pay more for potentially lower quality products. Perhaps most devastating are the projected job losses that this rule will cause at a time when unemployment and poverty are at record highs.

All told, it is estimated that about 104,000 people would lose their jobs following the implementation of this rule. This would reduce national GDP by $14.0 billion, and would cause a total of $1.36 billion in lost revenues to the Federal, state and local governments.

For more information on how the proposed rule will impact your state or congressional district, click on the map below.


For a full summary of the study’s findings and how the study was conducted, click here.

For the Top 10 Questions and Answers about the study, click here.