OCM: Boswell Files Competition Bill in House
Source: Organization for Competitive Markets (OCM)
May 3, 2007
The Organization for Competitive Markets expressed its appreciation to Representative Leonard Boswell (IA) for filing The Competitive and Fair Agricultural Markets Act of 2007 to increase competition in the agricultural marketplace. The Boswell legislation (H.R. 2135) changes existing rules governing the marketplace to increase fairness, access and to balance the power of producers with dominant packers.
"Meat packers and poultry companies have lobbied extensively to keep USDA from enforcing the law, and to prevent Congress from solving the very market problems created by those companies," said Keith Mudd, OCM president. "OCM thanks Representative Boswell for taking a leadership role as Chairman of the Agriculture Subcommittee on Livestock, Dairy and Poultry to introduce this important agriculture market reform legislation."
Boswell held April 17, 2007 hearings on livestock competition in which witnesses testified about unjust retaliation by poultry processors, price manipulation risks in the livestock markets, and the failure of USDA to enforce existing laws. Dr. Robert Taylor of Auburn University spoke of the unanimous agreement among agricultural economists that current formula contracting methods should be prohibited for allowing packer price manipulation risks.
"The bipartisan co-sponsorship of this legislation by Representatives Barbara Cubin (R-WY), Marcy Kaptur (D-OH), Bruce Braley (D-IA), and Dave Loebask (D-IA) shows the increasing support for increasing choice, competition and innovation by and for agricultural producers," continued Mudd. "We must carve out and address the worst practices that hamper supply and demand, to enable legitimate contracts and marketing options to flourish."
The Boswell legislation will address anti-competitive market practices in all of agriculture, not just livestock; provide producers with greater protection from contract abuse by packers and processors; require USDA to establish a more professional office with legal and investigative expertise to enforce market related laws; and clarify portions of the Packers & Stockyards Act that have confused judges.
competitivemarkets.com
Source: Organization for Competitive Markets (OCM)
May 3, 2007
The Organization for Competitive Markets expressed its appreciation to Representative Leonard Boswell (IA) for filing The Competitive and Fair Agricultural Markets Act of 2007 to increase competition in the agricultural marketplace. The Boswell legislation (H.R. 2135) changes existing rules governing the marketplace to increase fairness, access and to balance the power of producers with dominant packers.
"Meat packers and poultry companies have lobbied extensively to keep USDA from enforcing the law, and to prevent Congress from solving the very market problems created by those companies," said Keith Mudd, OCM president. "OCM thanks Representative Boswell for taking a leadership role as Chairman of the Agriculture Subcommittee on Livestock, Dairy and Poultry to introduce this important agriculture market reform legislation."
Boswell held April 17, 2007 hearings on livestock competition in which witnesses testified about unjust retaliation by poultry processors, price manipulation risks in the livestock markets, and the failure of USDA to enforce existing laws. Dr. Robert Taylor of Auburn University spoke of the unanimous agreement among agricultural economists that current formula contracting methods should be prohibited for allowing packer price manipulation risks.
"The bipartisan co-sponsorship of this legislation by Representatives Barbara Cubin (R-WY), Marcy Kaptur (D-OH), Bruce Braley (D-IA), and Dave Loebask (D-IA) shows the increasing support for increasing choice, competition and innovation by and for agricultural producers," continued Mudd. "We must carve out and address the worst practices that hamper supply and demand, to enable legitimate contracts and marketing options to flourish."
The Boswell legislation will address anti-competitive market practices in all of agriculture, not just livestock; provide producers with greater protection from contract abuse by packers and processors; require USDA to establish a more professional office with legal and investigative expertise to enforce market related laws; and clarify portions of the Packers & Stockyards Act that have confused judges.
competitivemarkets.com