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Harkin targets USDA enforcement, contract rights

Econ101

Well-known member
Harkin targets USDA enforcement, contract rights



Martin Ross

Farm Week

Wednesday, March 21, 2007



U.S. Senate Ag Chairman Tom Harkin (D-Iowa) is spearheading a measure aimed at improving USDA enforcement under the federal Packers and Stockyards and Agricultural Fair Practices Acts.



In Senate Judiciary Committee testimony, Harkin charged USDA’s Grain Inspection, Packers, and Stockyards Administration (GIPSA) with “widespread inaction, efforts to block investigations of unfair and anti-competitive conduct, and even efforts to cook the books to give the appearance of actual enforcement,” based on a 2006 report from USDA’s inspector general. The report was commissioned by Harkin.



A Senate ag aide related additional concerns about GIPSA’s congressionally mandated February Livestock and Meat Marketing Study, which based its conclusion that the hog industry was “unlikely to emulate the industrialization of the poultry sector” on surveys of a mere 229 pork producers.



Harkin’s recently introduced Competitive and Fair Agricultural Markets Act would establish a new, presidentially appointed “special counsel” charged solely with investigating and prosecuting violations on ag competition matters.



While the aide stressed industry consolidation “in itself isn’t a violation of the Packers and Stockyards Act,” he told FarmWeek it offers major packers “a greater ability to exert pressure” on producer-suppliers.



“Whenever that happens, you have a greater chance of unfair practices, and you also have a greater chance of take- it-or-leave-it type contracts,” the aide suggested.



Harkin also is co-sponsoring legislation that would ban packer livestock ownership and eyeing other proposals that might be included in a new farm bill competition title. The packer ban would not apply to ownership by producer co-ops or producer-packer contract arrangements, the ag aide stressed.



Beyond GIPSA, Harkin is critical of USDA’s Office of the General Counsel (OGC), which is charged with prosecuting Packers and Stockyards Act violations. The aide cited reports of a communications “disconnect” between GIPSA and OGC and concerns that even with GIPSA reforms, OGC may not “really be committed” to investigating questionable practices.



Harkin’s new special counsel would serve as a liaison between the U.S. Department of Justice and the Federal Trade Commission. The senator also proposes Justice Department evaluation of the producer impacts of proposed ag mergers.



“In recent years, the Department of Justice allowed Smithfield Foods to acquire the Farmland Foods pork division, thereby eliminating an entire buyer of hogs in Iowa,” Harkin told the Senate Judiciary panel. “Smithfield’s market share in pork processing increased from 20 to 26 percent.



“Last fall, Smithfield announced its intentions to acquire Premium Standard Farms, which could push Smithfield’s market share in pork processing to over 30 percent.



“Although this acquisition is still under review by the department, I cannot emphasize enough that there be a thorough review and that the effects on producers, not just consumers, be carefully evaluated,” said the senator.



farmweek.ilfb.org
 

PORKER

Well-known member
Harkin’s recently introduced Competitive and Fair Agricultural Markets Act would establish a new, presidentially appointed “special counsel” charged solely with investigating and prosecuting violations on ag competition matters.

The Multinational packers had better move their headquarters to some other countrys as it's going to get HOT!
 
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