Kansas City, Mo. ? Proposed restrictions on processors’ ability to control cattle and livestock supplies could have “disastrous” effects on the industry, packing plant operators told Agriculture Secretary Ann Veneman.

Veneman visited Kansas City’s Agriculture Department office Tuesday to announce $6.1 million in USDA grants and discuss food safety and proposed farm bill legislation.

Even as she spoke to farming groups and USDA employees, the Senate on Tuesday upheld restrictions that bar packing companies from owning or having control of cattle, hogs and sheep within two weeks of their slaughter.

Packers say the restrictions would make it tough to guarantee a large enough supply of quality livestock and improve consistency.

The restrictions could be a major stumbling block when House and Senate negotiators write a final version of the farm bill, which will spend $73.5 billion during the next 10 years. The restrictions aren’t part of the House’s farm bill.

Robert Manly, president of Premium Standard Farms, said the legislation could have “disastrous” effects on the industry.

“I’m disappointed that there hasn’t been more out of the White House leadership on this issue,” Manly said.

Veneman said she understood the concerns of Premium Standard Farms and other opponents, while acknowledging there is support for the restrictions from some livestock producers who feel they are losing production control.

She asked the producers whether they’d approached their congressional delegation with their worries. Missouri processors said they’d had success getting their views across to Sen. Kit Bond but not Sen. Jean Carnahan, who supported the restrictions after reviewing letters from both sides.

A federal judge in Atlanta granted class-action status in December to a case accusing IBP Inc. of depressing prices. The suit was first filed by 10 cattlemen who claimed IBP was violating antitrust laws by buying mostly packer-owned cattle and cattle committed to packers under long-term contracts rather than bidding on auction markets to unfairly depress prices paid to producers.

Veneman also discussed food safety. Even before the Sept. 11 terrorist attacks, she said, the nation had increased efforts to safeguard the nation’s food supply.

“Now with September 11th,” she said, “we’re concerned about homeland security and intentional threats on agriculture.”

She said farmers and ranchers are being more cautious about who they let onto their land, and research is being done to help identify threats to the food supply.

“While we continue to look at areas of risk,” she said, “consumers shouldn’t be overly concerned about the safety of food in the country.”