A bill to exempt feedlots from brand inspection laws in western Nebraska has advanced to the legislature. Introduced and prioritized by state Sen. Teresa Ibach (R-44), Legislative Bill (LB) 646, now amended by Amendment (AM) 638, seeks to remove brand inspection, audit and related fee requirements for qualifying feedlots, sparking both support and criticism from agricultural groups across the state.
“LB 646, as amended by AM 638, is an attempt to make the laws regarding feedlots in Nebraska more uniform across the state,” Ibach told WLJ in an email. “Currently, feedlots in western Nebraska face more burdensome regulation and are required to pay substantial fees that similarly sized feedlots located in eastern Nebraska do not face simply because of where they are located,” she said. “Ultimately, LB 646 is about reducing governmental bureaucracy and reducing fees for feedlots who have shown they are good actors in the industry.”
Proposed change
The amendments propose significant changes to Nebraska’s Livestock Brand Act, particularly concerning brand inspections for feedlots.
The bill introduces the concept of “exempt feedlots,” which are cattle feeding operations that, upon obtaining a certification from the Nebraska Brand Committee, would no longer require brand inspections when cattle enter or exit, provided they are sent directly to slaughter.
Feedlot operators must apply for exemption, pay a $500 fee and meet several requirements to qualify. The amendment also establishes that exempt feedlots must keep cattle inventory records and comply with audits, which may occur up to four times per year at no cost to the feedlot until 2028.
In addition to feedlot exemptions, AM 638 expands exemptions for cattle transfers and modifies inspection and fee structures. Cattle moved between affiliated grow yards and exempt or registered feedlots will not require inspection if proof of ownership is provided and the yard is permanently fenced.
The amendment also increases the brand renewal fee cap from $200 to $400 and raises the per-head inspection fee, with a maximum of $1.50 per head starting in 2026. It adds exemptions for dairy cattle and cattle moved for temporary care under certain conditions.
During an Agriculture Committee hearing on Feb. 11, Ibach highlighted that Nebraska ranks among the top cattle-feeding states, making it essential to modernize brand laws to help producers remain competitive.
Ibach also pointed out that no stolen cattle were found in registered feedlots during the last fiscal year, calling into question the necessity of the current inspection system for feedlots. She acknowledged that the bill could result in a loss of approximately $1.6 million in revenue for the Nebraska Brand Committee but suggested that savings could be found through increased operational efficiencies.
According to the fiscal note, the bill would lead to a reduction of approximately 1.2 million head of cattle inspected annually. Historically, the Nebraska Brand Committee has inspected an average of 3.7 million head per year from 1984-85 to 2022-23, meaning this legislation would decrease its workload by about 30%. The reduced duties could result in lower salaries, benefits and travel expenditures, with estimated savings of $1.8 million in the fiscal year 2025-26 and $1.9 million in fiscal year 2026-27.
Proponents, opponents
Proponents of the bill, including Brad Foote, owner of Imperial Beef LLC, and Cassie Lapaseotes, a fourth-generation cattle producer, argued that the current brand inspection laws place an unfair financial burden on feedlots in western Nebraska. Foote, who owns feedlots in Kansas and Nebraska, described Nebraska’s brand inspections as “outdated, unfair and an example of overregulation,” stating that his operation had spent approximately $780,000 on brand inspections. Similarly, Lapaseotes expressed frustration over paying multiple fees to move cattle within her operation, calling it an unnecessary tax.
Kris Bousquet, executive director of the Nebraska State Dairy Association, expressed strong support for the bill, specifically for its exemption of dairy producers and heifer development facilities from brand inspections, while leaving the broader debate on cattle brand laws to the beef industry.
“We understand that our friends in the ranching and beef industry find value in the program, but the dairy industry should not be required to help subsidize a program that provides no value to our producers,” Bousquet told WLJ.
Opponents of the measure raised concerns at the hearing about the bill’s potential to weaken Nebraska’s brand inspection system, creating opportunities for fraud, theft and financial insecurity.
The Nebraska Cattlemen testified in opposition to the bill as introduced and released a statement after the amendments were adopted.
“From LB646’s introduction to its advancement out of committee, Senator Ibach and members of the Agriculture Committee ensured (Nebraska Cattlemen) had a seat at the table to express our members’ concerns and advocate for changes,” the statement read.
The organization said the amendment includes provisions requested by Nebraska Cattlemen, including clearer ownership requirements for grow yards and exempt feedlots, quarterly audits and modified brand renewal fees.
“This is an important issue to all sectors of the membership of Nebraska Cattlemen, and we remain committed to working with Senator Ibach toward a solution that could be acceptable to the membership as we work to modernize brand laws in Nebraska,” the statement concluded.
Al Davis, representing the Independent Cattlemen of Nebraska and a former state senator, argued that branding provides crucial proof of ownership and serves as a vital safeguard for ranchers and lenders. “The bill should be killed,” he said, arguing that the current system is effective and should not be dismantled.
Mike Kelly, a rancher and banker from North Platte, further emphasized that branding is key in reducing financial risk for lenders, testifying, “Any time we can reduce risk in the lending business, it benefits all of us in agriculture.”
He and other critics maintained that removing feedlots from the inspection process would increase vulnerability to fraud and undermine the integrity of Nebraska’s cattle industry. — Charles Wallace, WLJ contributing editor
