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Bipartisan Congressional Momentum Builds Washington, D.C. (March 4, 2008) – In response to slower-than-expected Farm Bill progress and in the wake of misinformation being circulated by groups opposed to the prohibition on packer ownership of livestock, several key congressional members are taking steps to elevate the need for Congress – within the 2007 Farm Bill – to act decisively to restore the competitiveness of the U.S. cattle market. On Jan. 16, 2007, Sen. Charles Grassley, R-Iowa, introduced the Prohibition on Packers Owning, Feeding, or Controlling Livestock (Packer Ownership Ban), which is now officially included in the U.S. Senate version of the 2007 Farm Bill. The Packer Ownership Ban is intended to restore market integrity for independent U.S. cattle producers, and would prohibit the largest meatpackers from exercising price-depressing market power by strategically slaughtering their own cattle, while cattle owned by independent cattle producers are increasingly denied timely access to the marketplace,” said R-CALF USA Marketing Committee Co-Chair Randy Stevenson. In a Feb. 13, 2008, news release, Grassley states: “I appreciate the House getting the ball rolling on a farm bill, but this effort leaves a lot to be desired. It leaves out many priorities important to farmers, let alone the Senate. Specifically, I’m disappointed that the House neglected to include a possible compromise on a competition title. This includes my proposal to ban packer ownership of livestock, which would be one of the best things we could do to make sure the forces of the marketplace work for both the benefit of the farmer and the slaughterhouse.” Soon following Grassley’s reinforcement for the Packer Ownership Ban, Rep. Leonard Boswell, D-Iowa, issued his own public statement: “I believe that the Senate Competition Title is a vital part to ensuring market transparency and fair prices for our producers. . . "I am specifically supportive of the Senate's inclusion of the ban on packer ownership which would ensure the marketplace works for farmers and processors. . .” Boswell chairs the House Subcommittee on Livestock, Poultry and Dairy. Although not on the House Agriculture Committee, Rep. Barbara Cubin, R-Wyo., herself a co-sponsor of the Packer Ownership Ban filed in the U.S. House more than two years ago, sent letters today to President Bush and the Chairman and Ranking Member of the House Agriculture Committee stating: “The U.S. steer and heifer slaughter industry is dominated by just four meat packers. That control has enabled the largest meat packers to control producer’s access to markets and gain an unfair price advantage. The Senate’s Farm Bill language that bans packer ownership of cattle for longer than 14 days before slaughter will prevent this dominant industry from taking further advantage of that control.” Rep. Stephanie Herseth Sandlin, D-S.D., co-authored the letters. Cubin and Herseth Sandlin also explained that misinformation is skewing Congress perception of what the Packer Ownership Ban would and would not do. She wrote: “Contrary to some reports, the Senate language does not harm producers’ ability to use forward contracts or to use value-added marketing programs. In fact, Section 10207 explicitly establishes that producers can enter into contracting agreements, and then protects those agreements by requiring producer ownership and participation in the management of their livestock production. Additionally, Section 10207 exempts packers that own only one plant, that slaughter less than 125,000 cattle annually, and packers that are owned by a producer cooperative.” Stevenson said it is imperative that Congress include the Packer Ownership Ban in the 2007 Farm Bill, and he cautioned against compromising the measure by turning it into another study. “The opportunity for U.S. cattle producers to participate in a free market system will remain compromised if Congress does not properly define market rules to ensure that dominant meatpackers cannot exert undue control over widely dispersed, independent cattle producers,” he pointed out. “USDA commissioned a multi-million dollar study on packer ownership after the 2002 Farm Bill and found a causal relationship between increases in packer-owned livestock and decreases in the prices paid to producers for their livestock. Now is the time of Congress to act.” Note: To view the letters from Cubin and Herseth Sandlin, visit the “Competition Issues” link at www.r-calfusa.com, or contact R-CALF USA Communications Coordinator Shae Dodson at the phone number or e-mail address listed above. # # # R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, non-profit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA represents thousands of U.S. cattle producers on trade and marketing issues. Members are located across 47 states and are primarily cow/calf operators, cattle backgrounders, and/or feedlot owners. R-CALF USA has dozens of affiliate organizations and various main-street businesses are associate members. For more information, visit www.r-calfusa.com or, call 406-252-2516. |
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This page was last updated on Friday, June 06, 2008. |
