Group Believes USDA’s, Justice Department’s Motive for Investigating Competition in U.S. Agricultural Markets is Sincere 

March 15, 2010 Ankeny, Iowa – R-CALF USA CEO Bill Bullard attended an 8-hour markets competition workshop here on Friday hosted by the U.S. Department of Justice (Justice) and the U.S. Department of Agriculture (USDA). The departments’ stated goal of the workshops is to explore competition and regulatory issues in the agriculture industry.  

“I don’t believe this Administration would send out two Cabinet-level officials to put on such a comprehensive public hearing as they did with this workshop if they were not absolutely committed to listen to producers and find ways to restore competition in our markets, and I believe they very clearly indicated they are serious about correcting the ongoing antitrust and anticompetitive practices that are harming our industry,” Bullard said. “Of course, we can expect huge opposition from the giant multinational packers because they certainly don’t want to lose the significant advantage they enjoy when antitrust laws and the Packers and Stockyards Act are not properly enforced. We just hope these workshops lead to timely and fundamental changes that will allow independent U.S. cattle producers to once again capture their fair share of profits in a competitive marketplace.” 

Bullard said Agriculture Secretary Tom Vilsack said he believes the central issue associated with the concentration of agricultural markets is whether farmers and ranchers are receiving a fair shake, and that the purpose of the hearing was to explore whether the current marketing system is fair. Vilsack also noted that President Obama wants a new framework to reverse the ongoing decline of Rural America. 

U.S. Attorney Genera Eric Holder, according to Bullard, told the crowd that Justice’s primary goal is to protect farmers and consumers from antitrust activities and that preserving competitive markets in agriculture is a national security matter. 

U.S. Assistant Attorney General for Antitrust Christine Varney said there is now unprecedented cooperation and coordination between Justice and USDA and that both departments are on an unrelenting quest to find the right balance between farmers, processors and consumers. She said market transparency is key to maintaining a competitive market and that her agency would back up the expertise of USDA in order to properly enforce the Packers and Stockyards Act, Bullard said.

 “I firmly believe that U.S. cattle producers need to view this ongoing investigation into the competitiveness of the U.S. cattle industry seriously because it may be our one and only opportunity to bring forth the facts necessary to reverse the ongoing contraction of our industry,” Bullard concluded. “What USDA and Justice need are real-life examples from farm and ranch families that describe the erosion of competition that has occurred in our industry, so if you can attend any of the future workshops, please do so.” 

Four more workshops are scheduled: 1) Normal, Ala., May 21, 2010; 2) Madison, Wis., June 7, 2010; 3) Fort Collins, Colo., Aug. 26. 2010; and, 4) Washington, D.C., Dec. 8, 2010. More information about the joint USDA/Justice workshops, along with instructions on how to submit written comments, is available at http://www.justice.gov/atr/public/workshops/ag2010/index.htm.

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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 directors and committee chairs are extremely active unpaid volunteers. 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 Wednesday, October 12, 2011.