Packer ownership bill introduced
SEN. SALAZAR INTROS LIMITS TO PACKER OWNERSHIP
Bill would encourage fair competition for large and small producers
April 15, 2005
Washington, D.C. – United States Senators Ken Salazar and Chuck Grassley (R-IA) have introduced bipartisan legislation that will ban packer ownership and ensure market access for large and small cattle producers. Senator Salazar is the lead Democratic sponsor of the bill. The other co-sponsors includes Senators Dorgan (D-ND), Dayton (D-MN), Enzi (R-WY), Harkin (D-IA), Johnson (D-SD), and Thune (R-SD).
"The market practices in place today, where our small ranchers are forced to sell their cattle herds into anti-competitive markets where they cannot earn sustainable profits, only serve to choke the breath out of rural communities from Colorado to Iowa," said Senator Salazar.
Currently, four meatpackers control over 80% of the beef market. This legislation will prohibit packers from owning, feeding or controlling livestock for more than seven business days prior to slaughter which will provide increased options for small farmers and ranchers to get fairer prices for their cattle.
"We have a duty to ensure fair market access for all producers – big and small," said Senator Salazar. "Placing this seven day limit on packers will enable our small farmers and ranchers to get fairer prices for their cattle."
Surveys done by the Colorado Department of Agriculture have cited steady declines in the number of cattle across the state. In fact, last year Colorado reported the lowest inventory of cattle since 1962. Furthermore, in 2002, 60 percent of farms and ranches in Colorado had annual sales of less than $10,000.
"The facts show an industry that is being forgotten, withering on the vine," said Salazar. "Small, independent ranchers in Colorado and across the country have faced several years of drought combined with increased concentration in the market, we have seen a declining farming and ranching population while the market power of large agribusinesses has dramatically increased – this must stop."
The packer ownership provisions were included in the Senate-passed version of the 2002 farm bill. Unfortunately, the House of Representatives strongly opposed this measure and it was not included in the final farm bill. That is why Senator Salazar joined with Senator Grassley to continue the fight for this important provision.
Senator Salazar asked that the following statement be added to the record today.
Regarding the Introduction of Legislation to Ban Packer Ownership
Mr. President, I rise today with my distinguished colleague from Iowa to introduce a very important piece of legislation – legislation that will ban packer ownership. This is not a new legislative initiative. In fact, it is legislation that has been debated in Congress for many years. The years of debate and delay have only made this proposal more essential.
Ranchers across the country are facing increased concentration in the meatpacking industry. Today, four meatpackers control over 80 percent of the market. Consider that, Mr. President, in a multi-billion dollar industry, four packers control 80 percent of the market.
I am extremely concerned that such a market structure easily allows meatpackers to influence markets. Imagine how ranchers – in Iowa or Colorado or anywhere in this great country – are disadvantaged in such a marketplace.
My family has ranched in the San Luis Valley and northern New Mexico for more than 400 hundred years. My family's farm in the San Luis Valley has nurtured six generations of my family and continues to operate today.
What I have seen in my home community is also occurring across the great state of Colorado. Surveys done by the Colorado Department of Agriculture have cited steady declines in the number of cattle across my state. In fact, last year my state reported the lowest inventory of cattle since 1962. Furthermore, in 2002, 60 percent of farms and ranchers in Colorado had annual sales of less than $10,000.
These numbers show us an industry that is being forgotten, withering on the vine. Small, independent ranchers in Colorado and across the country have faced several years of drought. Combined with increased concentration in the market, we have seen a declining farming and ranching population while the market power of large agribusinesses has dramatically increased.
That is why I rise today to introduce this bipartisan measure designed to ensure market access for all producers, big and small. Specifically, this legislation would modify the Packers and Stockyards Act to prohibit packers from owning, feeding or controlling livestock for more than 7 business days prior to slaughter.
Our goal with this legislation is simple: check vertical integration, create open and competitive markets and ensure a place for independent producers in the marketplace. We must address this continuing concentration and we must allow all producers the chance to compete in the marketplace and increase their business.
I am hopeful that my colleagues will join this bipartisan effort and stand up for small, independent producers across the country.
I yield the floor.
Source: Salazar office media release
HARKIN SEEKS TO PROTECT ROLE OF INDEPENDENT
PRODUCERS IN LIVESTOCK INDUSTRY
Senator urges passage of legislation to ban packer ownership of livestock
April 15, 2005
WASHINGTON, D.C.‹ Seeking to level the playing field for independent pork and beef producers in Iowa and across the country, U.S. Senator Tom Harkin (D-IA) joined Senator Charles Grassley (R-IA) and six other senators today in introducing legislation to ban packer ownership and feeding of livestock. Packers owning livestock from birth to slaughter has increased steadily and markedly in the last 15 years. This practice, a feature of vertical integration, allows meat packers to avoid competing to buy livestock on the open market, and it severely limits marketing options for independent producers.
³Independent livestock producers deserve to have an open, fair and evenhanded marketplace,² Harkin said. ³Today, independent producers are at the mercy of market prices heavily dictated and controlled by the largest corporate livestock firms. The court challenge to Iowa¹s law banning packer ownership points to the need for a federal, nationwide law to balance the power between the largest livestock firms and independent producers.²
This legislation will make it unlawful for a packer to own, feed, or control livestock except for the seven days prior to slaughter. Senator Harkin has long championed the need for a ban on packer ownership. As then-chairman of the Senate Committee on Agriculture, Nutrition and Forestry, Harkin was instrumental in including a ban on packer ownership in the Senate version of the 2002 farm bill. However, leaders from the House of Representatives flatly refused to agree to the packer ownership ban during farm bill conference negotiations.
On a related matter, Harkin is pushing USDA to carry out and fully enforce the Packers and Stockyards Act¹s protections against unfair and anti-competitive practices in livestock markets. Harkin raised the issue directly with Secretary of Agriculture Mike Johanns at a hearing on April 12. And Harkin wrote to USDA Inspector General Phyllis Fong on April 4 raising serious questions about the lack of enforcement activity by USDA¹s Grain Inspection, and Packers and Stockyards Administration (GIPSA) against anti-competitive and unfair practices in livestock markets.
Last October, Harkin released a Senate Agriculture, Nutrition and Forestry Committee Democratic staff report detailing the detrimental affects that vertical integration and consolidation in the livestock industry poses to independent family farmers. A ban on packer ownership was one of several policy options explored in the report. This report can be obtained by going to Senator Harkin¹s website www.harkin.senate.gov, and clicking on agriculture. The report is titled ³Economic Concentration and Structural Change in the Food and Agriculture Sector: Trends, Consequences and Policy Options.²
Source: Senator Harkin's office
SEN. SALAZAR INTROS LIMITS TO PACKER OWNERSHIP
Bill would encourage fair competition for large and small producers
April 15, 2005
Washington, D.C. – United States Senators Ken Salazar and Chuck Grassley (R-IA) have introduced bipartisan legislation that will ban packer ownership and ensure market access for large and small cattle producers. Senator Salazar is the lead Democratic sponsor of the bill. The other co-sponsors includes Senators Dorgan (D-ND), Dayton (D-MN), Enzi (R-WY), Harkin (D-IA), Johnson (D-SD), and Thune (R-SD).
"The market practices in place today, where our small ranchers are forced to sell their cattle herds into anti-competitive markets where they cannot earn sustainable profits, only serve to choke the breath out of rural communities from Colorado to Iowa," said Senator Salazar.
Currently, four meatpackers control over 80% of the beef market. This legislation will prohibit packers from owning, feeding or controlling livestock for more than seven business days prior to slaughter which will provide increased options for small farmers and ranchers to get fairer prices for their cattle.
"We have a duty to ensure fair market access for all producers – big and small," said Senator Salazar. "Placing this seven day limit on packers will enable our small farmers and ranchers to get fairer prices for their cattle."
Surveys done by the Colorado Department of Agriculture have cited steady declines in the number of cattle across the state. In fact, last year Colorado reported the lowest inventory of cattle since 1962. Furthermore, in 2002, 60 percent of farms and ranches in Colorado had annual sales of less than $10,000.
"The facts show an industry that is being forgotten, withering on the vine," said Salazar. "Small, independent ranchers in Colorado and across the country have faced several years of drought combined with increased concentration in the market, we have seen a declining farming and ranching population while the market power of large agribusinesses has dramatically increased – this must stop."
The packer ownership provisions were included in the Senate-passed version of the 2002 farm bill. Unfortunately, the House of Representatives strongly opposed this measure and it was not included in the final farm bill. That is why Senator Salazar joined with Senator Grassley to continue the fight for this important provision.
Senator Salazar asked that the following statement be added to the record today.
Regarding the Introduction of Legislation to Ban Packer Ownership
Mr. President, I rise today with my distinguished colleague from Iowa to introduce a very important piece of legislation – legislation that will ban packer ownership. This is not a new legislative initiative. In fact, it is legislation that has been debated in Congress for many years. The years of debate and delay have only made this proposal more essential.
Ranchers across the country are facing increased concentration in the meatpacking industry. Today, four meatpackers control over 80 percent of the market. Consider that, Mr. President, in a multi-billion dollar industry, four packers control 80 percent of the market.
I am extremely concerned that such a market structure easily allows meatpackers to influence markets. Imagine how ranchers – in Iowa or Colorado or anywhere in this great country – are disadvantaged in such a marketplace.
My family has ranched in the San Luis Valley and northern New Mexico for more than 400 hundred years. My family's farm in the San Luis Valley has nurtured six generations of my family and continues to operate today.
What I have seen in my home community is also occurring across the great state of Colorado. Surveys done by the Colorado Department of Agriculture have cited steady declines in the number of cattle across my state. In fact, last year my state reported the lowest inventory of cattle since 1962. Furthermore, in 2002, 60 percent of farms and ranchers in Colorado had annual sales of less than $10,000.
These numbers show us an industry that is being forgotten, withering on the vine. Small, independent ranchers in Colorado and across the country have faced several years of drought. Combined with increased concentration in the market, we have seen a declining farming and ranching population while the market power of large agribusinesses has dramatically increased.
That is why I rise today to introduce this bipartisan measure designed to ensure market access for all producers, big and small. Specifically, this legislation would modify the Packers and Stockyards Act to prohibit packers from owning, feeding or controlling livestock for more than 7 business days prior to slaughter.
Our goal with this legislation is simple: check vertical integration, create open and competitive markets and ensure a place for independent producers in the marketplace. We must address this continuing concentration and we must allow all producers the chance to compete in the marketplace and increase their business.
I am hopeful that my colleagues will join this bipartisan effort and stand up for small, independent producers across the country.
I yield the floor.
Source: Salazar office media release
HARKIN SEEKS TO PROTECT ROLE OF INDEPENDENT
PRODUCERS IN LIVESTOCK INDUSTRY
Senator urges passage of legislation to ban packer ownership of livestock
April 15, 2005
WASHINGTON, D.C.‹ Seeking to level the playing field for independent pork and beef producers in Iowa and across the country, U.S. Senator Tom Harkin (D-IA) joined Senator Charles Grassley (R-IA) and six other senators today in introducing legislation to ban packer ownership and feeding of livestock. Packers owning livestock from birth to slaughter has increased steadily and markedly in the last 15 years. This practice, a feature of vertical integration, allows meat packers to avoid competing to buy livestock on the open market, and it severely limits marketing options for independent producers.
³Independent livestock producers deserve to have an open, fair and evenhanded marketplace,² Harkin said. ³Today, independent producers are at the mercy of market prices heavily dictated and controlled by the largest corporate livestock firms. The court challenge to Iowa¹s law banning packer ownership points to the need for a federal, nationwide law to balance the power between the largest livestock firms and independent producers.²
This legislation will make it unlawful for a packer to own, feed, or control livestock except for the seven days prior to slaughter. Senator Harkin has long championed the need for a ban on packer ownership. As then-chairman of the Senate Committee on Agriculture, Nutrition and Forestry, Harkin was instrumental in including a ban on packer ownership in the Senate version of the 2002 farm bill. However, leaders from the House of Representatives flatly refused to agree to the packer ownership ban during farm bill conference negotiations.
On a related matter, Harkin is pushing USDA to carry out and fully enforce the Packers and Stockyards Act¹s protections against unfair and anti-competitive practices in livestock markets. Harkin raised the issue directly with Secretary of Agriculture Mike Johanns at a hearing on April 12. And Harkin wrote to USDA Inspector General Phyllis Fong on April 4 raising serious questions about the lack of enforcement activity by USDA¹s Grain Inspection, and Packers and Stockyards Administration (GIPSA) against anti-competitive and unfair practices in livestock markets.
Last October, Harkin released a Senate Agriculture, Nutrition and Forestry Committee Democratic staff report detailing the detrimental affects that vertical integration and consolidation in the livestock industry poses to independent family farmers. A ban on packer ownership was one of several policy options explored in the report. This report can be obtained by going to Senator Harkin¹s website www.harkin.senate.gov, and clicking on agriculture. The report is titled ³Economic Concentration and Structural Change in the Food and Agriculture Sector: Trends, Consequences and Policy Options.²
Source: Senator Harkin's office
