991059 Senate Bills Take Aim At Packer ConcentrationOctober 16, 1999Washington - A pair of Senate bills aimed at helping family farmers and ranchers by reining in the activities of large meatpackers, grain processors and other agribusinesses was introduced. The legislation reflected the fear of farm-state Democrats that small growers were being squeezed by weak commodity prices at the same time agribusiness concentration reduced the number of buyers and suppliers. The record $8.7-billion farm bailout passed by Congress earlier this week will help growers pay their bills this winter but doesn't address the antitrust issues that affect the farm sector, they contend. Sen. Paul Wellstone, a Minnesota Democrat, introduced a bill that would temporarily halt all big agribusiness mergers. The legislation aims to launch an 18-month moratorium on acquisitions of more than $10 million by grain, livestock, seed, fertilizer, and processing companies with annual revenue of more than $100 million. It would also create a 12-member panel of farmers and others to recommend changes in U.S. antitrust law. Wellstone complained that virtually every aspect of farming is now dominated by a handful of large companies. “These conglomerates have muscled their way to the dinner table...and are pushing family farmers out of business,” he said. “I feel a sense of urgency. Time is not on the side of family farmers.” Last month, pork processing giant Smithfield Foods Inc announced it planned to buy rival Murphy Farms in a $460 million deal. Earlier this year, Cargill Inc agreed to sell certain export elevators to win approval from federal antitrust regulators to buy Continental Grains' grain unit. Another combination, Case-IH and New Holland, would create a huge implement maker. If adopted by Congress, the moratorium would apply to Smithfield and any other planned agribusiness acquisitions that have not yet been completed. The new legislation, which has no Republican co-sponsors, faces an uphill battle. The Senate's Republican leadership has been keeping tight control over what bills go to the floor to complete work by Oct. 29, the scheduled adjournment for the year. Wellstone said he was maneuvering to get a floor vote by blocking three key bills and also was considering a filibuster to pressure the Senate leadership. Sources said a filibuster -- unending debate against a piece of legislation -- might target the landmark financial services reform bill now making its way through Congress. Other targets could be a bill regulationg Internet commerce or revising rules on agricultural trade sanctions. Fellow Democrats Byron Dorgan of North Dakota and Tom Harkin of Iowa co- sponsored the bill. A separate Senate bill that would ban meatpackers from owning livestock was introduced with bipartisan support. The farm bail-out plan included a provision requiring meatpackers to report the price of livestock they purchase but was silent on the “packer ownership” question. “The independent livestock producer doesn't have a chance of getting a decent price when a meatpacker controls so much of the process,” said Sen. Chuck Grassley, an Iowa Republican. The legislation would “remove the taint of monopoly” from the meat packing industry, he added. The bill, written by Democrat Tim Johnson of South Dakota, would give pork packers 18 months to sell their herds, and beef and sheep processors one year. It would allow packers to buy livestock supplies only 14 days ahead of planned slaughter. Exceptions would be allowed for farm cooperatives, in which a majority of members are growers. That type of co-op was emerging as as attempt by farmers to enjoy some of the mark-up that goes to food processors. The exemption would not include Farmland Industries, a meatpacker and giant U.S. cooperative merging with Cenex Harvest State Cooperatives to become the largest farmer-owned cooperative in the United States. IBP Inc, ConAgra Inc, Cargill's Excel unit and Farmland National Beef control about 80% of the U.S. beef market. The same companies plus Smithfield also control more than half of the port market. “A crisis is occurring among livestock farmers and ranchers,” said Sen. Tim Johnson, a South Dakota Democrat who spearheaded the bill. “Free enterprise works in this country only if there is competition.” Senate hearings on the meatpacker ownership bill were expected soon after the beginning of the year, Johnson said.
|
