Livestock Mandatory Price Reporting: A Literature Review and Synthesis of Related Market Information Research

Congress passed into law the Livestock Mandatory Reporting Act in 1999 and a mandatory pricing reporting system for livestock and meat began in 2001. The implementation was problematic. It is also difficult to find any research prior to the legislation that demonstrated inadequacies in the voluntary price reporting system that had been in existence since the Agricultural Marketing Act of 1946. Thus, there is little evidence upon which to evaluate the new system. Available research suggests mandatory price reporting increased transparency and information at the national level and across cash and non-cash market choices, reduced price information in regional markets, and increased spatial and vertical market integration. Research shows diverse opinions on the success of the new system. Research also shows the potential for retail meat scanner data to significantly improve the accuracy of reported retail meat prices. Related research suggests clear benefits of the new system will be hard to measure. A primary conclusion from the literature is that benefits were unforeseen and unintended consequences were large. And that continued cost/benefit oriented research of the policy and legislation would be useful.