Producer objections to NAIS involve issues of cost, privacy, and liability. Some producers are worried that meatpackers would transfer liability for bacterial contamination of processed meat back to the farm of origin. Others see NAIS as a threat to the confidentiality of producer records; they're concerned that foreign governments, packers, or other buyers might gain access to those records for their own benefit. Tags that remain on an animal throughout the supply chain could be scanned, and the data retained by buyers to build a database of a producer's products and values. Some worry that packers might use the information they gain from RFID tags for an unfair advantage…

Owners of independent livestock markets are concerned about the bookkeeping and reporting burden NAIS creates for them. Some states have already required FFA members to comply with NAIS before they're allowed to participate in livestock projects.