LUBBOCK, Texas (RFD-TV) — Producers warn that today’s Mandatory Price Reporting system no longer provides the transparent cash-market signals Congress intended, creating challenges for price discovery in a cattle sector increasingly shaped by formula and contract sales. The law was designed to provide timely, uniform information across regions, but outdated confidentiality rules now impede reporting in several major feeding states.
The core problem stems from U.S. Department of Agriculture (USDA) thresholds that prevent the publication of data when too few packers operate in a region. As a result, Texas and Colorado — both critical cattle-feeding hubs — often have no publicly reported cash prices. The Ag Center argues that USDA has made only incremental updates over 25 years despite major changes in packer procurement practices.
Operationally, thin cash trade magnifies the need for accurate reporting because base-price formulas typically reference cash values. Producers say today’s gaps hinder negotiations, distort formula settlements, and complicate hedging strategies.
Regionally, the reporting void is most acute in the Southern Plains, though similar issues are evident in parts of the Midwest and Northwest, where packing concentration limits the number of reportable transactions.
Analysts believe modern data systems and AI could rapidly overhaul reporting. Proposals include standardized FOB live-equivalent pricing, clearer transaction categories, updated regional definitions, and timed disclosure of grid and formula adjustments.
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