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How sequestration will hurt

Roughly 98 percent of the cattle processed in this country and over 99 percent of hogs are processed under federal inspection.  Purdue University ag economist Chris Hurt says as sequestration begins the meat industry is unable to switch from federal to state inspection.  “We’re really talking about having to close some of these large federally inspected plants on some days or at least some shifts,” he says. 

So what happens if we are unable to continue moving animals through our federal processing facilities?

“You’re going to raise prices for consumers meat and poultry products, you’re going to create more unemployment at the plant level and reduce economic activity in those communities, and producers are also going to see some lower prices for their animals,” he says. 

The cuts, Hurt says total about $53 million in savings for the agency; but he says those savings are very small when compared to what it will cost the industry and the consumers.

AUDIO: Chris Hurt, Sequestration (2:45mp4)