010132 USDA Nominee Pledges Antitrust Enforcement

Washington - Ann Veneman promised to use antitrust laws “to the maximum degree” as the first woman to head the U.S. Agriculture Department to prevent harmful agribusiness mergers and help farmers get a fair price from giant food processors.

During a three-hour confirmation hearing, Veneman endorsed federal bailouts to growers caught in the fourth year of a price slump. She also pledged to tear down trade barriers to U.S. farm exports and said the European Union must reduce its export subsidies.

Members of the Senate Agriculture Committee welcomed Veneman, a lawyer raised on a California peach farm, as a highly qualified and widely respected nominee. She could be approved by the Senate as early as Saturday to begin work.

Veneman held the Agriculture Department's No. 2 job, deputy secretary, a decade ago after several years in mid-level jobs specializing in trade issues. She was California agriculture director from 1995-99.

The USDA runs the farm program, oversees the national forests, is in charge of meat inspection and spends about $35 billion on public feeding programs, like school lunch and food stamps. A wave of mergers, including the proposed acquisition of beef and pork processor IBP Inc by poultry giant Tyson Foods Inc., has fostered Farm Belt fears that growers are being muscled aside by behemoth firms who control an ever-growing share of the market.

“Probably no other issue came up so consistently,” Veneman said, referring to her recent visits with lawmakers. “I know it is on people's minds.”

“We would intend to use that authority to its maximum degree,” Veneman said, referring to the Packers and Stockyards Act, a federal law which lays out fair- play rules in livestock sales.

John Ashcroft, President-elect George W. Bush's nominee for attorney general, has promised to work with the USDA on antitrust enforcement as well, she said.

Senators Differ On Possible Remedies

Iowa Republican Charles Grassley, who will head the Senate Finance Committee, favors legislation to give the USDA power to challenge mergers that would hurt farmers. Vermont Democrat Pat Leahy prefers to broaden and toughen the coverage of the Packers and Stockyards law to assure fairer prices and contracts for production.

“Farmers... have no markets left. They get one bid,” said Iowa Democrat Tom Harkin, temporary chairman of the Agriculture Committee.

Congress has enacted more than $24 billion in farm bailouts since October 1998 to shield growers from low grain prices. Another multibillion-dollar package was expected this year.

“Certainly, I believe it is important we continue to provide safety nets. I am not prepared to say what form it should take,” Veneman responded when asked if the best choice was a new aid package or a rewriting of the 1996 farm law that deregulated farming.

“We do need to help our farmers market up the food chain so they get more value from what they grow,” she said at another point. Many analysts say farmers can profit by capturing the price mark-up earned by processors and marketers.

In her opening statement, Veneman said that besides helping farmers through hard times, “we must also work together to help them seize market opportunities both at home and abroad... we need to expand trade and eliminate barriers to access for our products in what is an ever-expanding global economy.”

Responding to questions from senators, Veneman said she supported “very strong enforcement of the trade laws we have on the books” against unfair imports. Trade barriers to U.S. exports must be dismantled too, she said.

“We should continue to pressure the EU to bring down export subsidies,” Veneman said.

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