Livestock Mandatory Price Reporting and Effects on Lamb Price Risk

Abstract

In 1999, Congress passed the Livestock Mandatory Reporting Act (LMR) regulating the reporting of market information specific to cattle, swine, and lambs (and their products). The LMR program was implemented in April 2001 (USDA/AMS 2004) and was reauthorized by Congress in the fall of 2006. Under LMR, meat packers with recent 5-year slaughter histories of at least 125,000 cattle, 100,000 swine, or 75,000 lambs must electronically file daily summary information to the USDA’s Agricultural Marketing Service (AMS) on all transactions involving livestock purchases and meat sales. Detailed information is also to be reported by firms that import meat products and sell them into the domestic market. Overall, the LMR program is intended to provide transparency regarding pricing, marketing methods, and supply and demand conditions for livestock and livestock products (USDA/AMS 2004).