NAIS—No Cost Analysis
by Judith McGeary

Many people would object to the NAIS even if it imposed no monetary costs, because of the government intrusion into people’s lives and businesses. And it’s obvious the NAIS will also impose significant tangible costs.

Estimates from the Australian Beef Association place the total cost of tagging and tracking at $37 to $40 per animal, on average. A British parliamentary report estimates the costs for the British system at $69 per head. Since people who own one or just a few animals usually pay more than large producers, because of economies of scale, these averages understate the probable cost for most individuals.

I presented these numbers at a panel discussion on the NAIS at the Carolina Farm Stewardship Conference. After the panel discussion, Neil Hammerschmidt and both state vets (North and South Carolina) quietly cornered me to try to convince me to stop talking about these numbers. Of all the challenges I raised to the NAIS, this one seems to bother them the most. They claim the numbers are wrong and we wouldn’t see those costs in the United States. Yet when I asked them to show me any analysis they had done to support their claim that the NAIS would not cost this much, they couldn’t.

In contrast to the real-life numbers derived from experience of other countries, our government and industry make various claims about the costs, but have provided absolutely no basis for their claims. One industry claim is that RFID tags will be sold for $2.75, which will include “lifetime reporting.” Compared to the costs reported for existing programs in Australia and Britain, this claim is difficult to believe.

A conversation with a board member of the United States Animal Identification Organization (USAIO) cleared up the confusion. USAIO was created in 2006 by Farm Bureau, National Cattlemens Association, and others to manage the “industry-led animal movement database.” Apparently USAIO’s plan is to develop contracts with slaughterhouses and sales barns to fund part of the cost of the databases. So instead of paying for reports directly, animal owners will pay indirectly every time we take an animal for processing or sale. And whatever shortfall is not covered by the levies on the tags and services will presumably be made up in our tax dollars.

• We Must Do More

Judith McGeary is an attorney in Austin, Texas, and the executive director of the Farm and Ranch Freedom Alliance, an organization representing independent farmers, ranchers, livestock owners, and homesteaders. This article appeared in the Winter 2007 issue of Rural Heritage.