Captive Supply Reform Act

The Captive Supply Reform Act (S. 1044) proposes changes to the Packers and Stockyards Act of 1921 to increase transparency and competition in the livestock market. The bill would require meatpackers to use fixed-dollar base prices and public bidding when contracting with producers, while prohibiting the use of "formula pricing," which often ties prices to private or opaque market averages. By limiting the size of individual contracts and requiring more public price discovery, the bill aims to provide independent ranchers with more equitable market access and potentially stabilize meat prices for consumers by fostering a more competitive marketplace.