Missouri Livestock Law Upheld

May 16, 2001

The U.S. Court of Appeals for the Eighth Circuit has held that a Missouri law concerning livestock purchases does not violate the Constitution. Last year, a U.S. district court ruled that the challenged provisions were unconstitutional because they impermissibly burdened interstate commerce.

The American Meat Institute, a group of feedlot operators, the Missouri Cattlemen's Association and the Missouri Livestock Marketing Association had challenged sections of Missouri's livestock marketing law claiming that the law was unconstitutional. Among the requirements imposed by the Missouri law is a provision that prohibits price discrimination and requires a packer who makes a "differential payment" to a seller to publish information about that transaction and to offer other livestock sellers the opportunity to "enter into an agreement for the delivery of livestock at a specified date and time according to the same terms and conditions."

The court of appeals ruled, however, that the Missouri law was limited to purchases in Missouri only and did not affect purchases outside the state. Because nothing prevents packers from buying livestock outside the state, the law did not burden interstate commerce, with the court concluding that "[E]conomic hardship experienced by Missouri feedlots does not rise to the level of a dormant Commerce Clause violation."

The original plaintiffs will meet soon to determine what action they will take, if any.