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Livestock market operators in Wisconsin are sounding the alarm over a proposed increase in fees by the state Department of Agriculture, Trade and Consumer Protection. Jim Matthes of Matthes Farms Auction Market calls the hike “excessive.”
Matthes, who operates the family business with his son and grandson in Viola, says fees on livestock markets, dealers, and haulers would go up as much as 1,700 percent. For small sale barns with tight budgets and thin margins, the financial impact could be devastating.
“You don’t have that budgeted. You don’t have those margins in a sale barn. We’re a small market. We don’t have the volume that some of the other markets have to pass along that and dilute it down to each one,” Matthes explains. “But we would find it very necessary to increase our tariffs or the commissions that we charge in order to continue to operate.”
He also pointed to a shrinking cattle population and dwindling number of farms as added pressure on already strained businesses.
“That’s true. The volume is down,” Matthes says of the cattle population. “Now, there is not the number of people in the sale barns, and that is attributed to there isn’t that many farmers left.”
Fixing DATCP’s Budget
DATCP Secretary Randy Romanski told Mid-West Farm Report there hasn’t been a fee increase since 2008-2009. The fees bring revenue to support essential services, such as animal health administration, which is currently operating at a deficit.
“The functions that are supported by this revenue are very important,” Romanski said. “These are things that our animal health staff has to be doing to make sure that we are all finding that shared goal of making sure animals are healthy and safe as they move about the state.”
At Tuesday’s public hearing on ATCP 10 and ATCP 12, livestock markets and producers urged DATCP to consider alternatives. Matthes took issue with DATCP’s claim that it’s recieving less funding from the federal government for its animal health sector.
“In talking with the LMA, the Livestock Marketing Association… they say that the funding from the federal government hasn’t decreased for the market,” he sites. “That’s very evident by what our surrounding states — Michigan, Illinois, Iowa, and Minnesota — how their fees are structured.”
Instead, Matthes says state lawmakers must act.
“I think that the legislature has to step up and realize that this is a consumer responsibility to have good quality food, to be able to trace back animals,” he says. “All of these things are important, but… our legislature just cannot sit on their hands. They have to act on this.”
Putting Wisconsin At A Disadvantage
According to the Livestock Marketing Association, the fee increase would make Wisconsin one of the most expensive states for sale barn licensing. Chair Holly Foster says the proposed rules would raise fees from $450 to $7,500. LMA released numbers for comparison: Minnesota charges about $300, Illinois charges $200, and Iowa charges just $50 for similar user fees.
Matthes says this would put Wisconsin markets at a competitive disadvantage. His family’s business is not far from the state border.
“When you get into either Minnesota or Iowa or further to Illinois… there is a lot of cattle in our area that does move across state lines,” he explains. “As a result, Wisconsin is losing that source of revenue to the state, and they’re also losing that ability to regulate those animals.”
Attend A Public Hearing:
Prairie Oaks State Office Building, Room 106, 2811 Agriculture Dr., Madison, WI 53708
- Wednesday, Sept. 17 – 1:00 P.M.
Register Online For Virtual Access:
Phone access information can be provided.
Submit Written Comments By Oct. 15:
Mail: Angela Fisher, DATCP, P.O. Box 8911, Madison, WI 53708
Email: [email protected]
