Washington - As concerns grow about consolidation in agriculture, farm state Democratic senators have asked Attorney General Janet Reno to investigate concentration in livestock and farm commodity markets.
“We believe conditions have reached a point that our producers are being denied the opportunity to receive a fair price for their products through fair, free and open markets,” said the letter, dated Tuesday.
It was signed by Sens. Byron Dorgan and Kent Conrad of North Dakota, Tim Johnson of South Dakota, Paul Wellstone of Minnesota, Tom Harkin of Iowa and Bob Kerrey of Nebraska, as well as Senate Minority Leader Tom Daschle of South Dakota.
A spokeswoman for Reno did not immediately return calls for comment.
Agriculture Secretary Dan Glickman recently asked the Justice Department and the Federal Trade Commission to examine pricing problems within the pork industry, where farmers are receiving record-low prices.
Many lawmakers have expressed concern about plans by Cargill Inc. of Minneapolis, the nation's No. 1 grain company, to buy the worldwide grain operations of second-ranked Continental Grain Co. Justice is reviewing the deal.
Senate Agriculture Committee Chairman Dick Lugar, R-Ind., has scheduled a hearing Jan. 26 on the concentration issue.
The senators wrote that the top four firms control 87 percent of beef slaughter, 60 percent of pork slaughter and 73 percent of sheep slaughter.
It is the same in commodities markets, they said, writing that four firms control 59 percent of port facilities, 62 percent of flour milling, 74 percent of wet corn milling and 76 percent of soybean crushing.
The Justice Department should investigate “whether such powerful concentration is squeezing farm prices and denying farmers the opportunity to receive a fair return for their production,” the letter said.
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