Competitive and Fair Agricultural Markets
Farmers & Ranchers Need Fair Markets!
The United States Department of Agriculture (USDA) has proposed the “GIPSA rule” that would ensure that all producers, regardless of size, would have the same opportunities to earn quality premiums. The section of the proposal addressing undue or unreasonable preference or advantage is shown below.
201.211 “The Secretary may consider the following criteria, among others, in determining if an undue or unreasonable preference or advantage, or an undue or unreasonable prejudice or disadvantage, has occurred in violation of the (1921 Packers and Stockyards) Act:
- Whether contract terms based on number, volume or other condition, or contracts with price determined in whole or in part by the volume of livestock sold are made available to all poultry growers, livestock producers or swine production contract growers who individually or collectively meet the conditions set by the contract.
- Whether price premiums based on standards for product quality, time of delivery and production methods are offered in a manner that does not discriminate against a producer or group of producers that can meet the same standards.
The full GIPSA rule proposal can be viewed at http://archive.gipsa.usda.
The GIPSA rule would ensure that:
- Premiums for livestock will be preserved.
- Small producers who market jointly will have the same opportunities as mega-farms to earn volume premiums.
We need you to tell your senators to support the USDA proposed GIPSA rule now! Write to them before August 4th to encourage their immediate action on this crucial livestock legislation.
Related Links: Love your Family Farmer? Call the White House! Northern Ag Network interview: John Crabtree comments to Kaci Switzer on the new USDA rule Weekly columns: Grain Inspection Packers & Stockyards Administration (GIPSA) features an outline of the proposed rule, Q/A on the rule and examples of market behavior. Read the Center's news release on this development here! See a copy of Secretary Vilsack's reply here! The VICTORY! Currently, a handful of corporations dominate the American food system. The rapid trend toward vertical integration, especially in hog production, further exacerbates the economic concentration in packing, processing and production. As the livestock sector has become extremely concentrated and integrated, packers and processors increasingly control production at all stages. Packer ownership of livestock (vertical integration) is driving the economic nightmare and environmental catastrophe of concentrated, industrial livestock production. In many rural places where livestock are raised there are only a few, or even just one, packer or processor for a given livestock species. This is especially true in the livestock and poultry sectors. At the same time there has been a dramatic increase in the use of production and marketing contracts that further diminish the bargaining power of farmers and ranchers. Currently, fully 89% of hogs are either owned outright by packers or tightly controlled through various contracting devices. Many farmers and ranchers face price discrimination and severely limited market access as a result. The bottom line? In a world where packers own or control all the livestock, there is no place for family farmers and ranchers, rural communities suffer another economic loss and all of us suffer the destruction of our natural environment. 2008 Farm Bill To prevent price manipulation and save family farm livestock production, the 2007 Farm Bill passed by the U.S. Senate contained a ban on meatpacker ownership of livestock. It also contained provisions to end the sweetheart deals giant industrial livestock operations receive today. But members of Congress representing the interests of big corporate meatpacking companies stripped most of the provisions in conference committee. We had one important win in the 2008 Farm Bill. For the first time ever the farm bill includes a Livestock Title. In that title, USDA is directed to establish rules governing “undue preferences” by meatpackers, such as volume premiums to mega livestock producers. The 1921 Packers and Stockyards Act prohibits “undue preferences” but has not been enforced. We have long opposed volume premiums that are not based on verifiable cost savings to the meatpacker. Sweetheart deals for mega producers place family farmers at a competitive disadvantage. The farm bill leaves the wording of the regulations to USDA, so they could be strong or do nothing. But the farm bill does force USDA to act, and that gives us a fighting chance to make the case and build grassroots pressure for effective rules. Senator Tom Harkin (D-IA) won passage of this provision. More Information New Release: USDA Announces Long-awaited Livestock Market Reforms, 6-18-10 Boswell Breaks with Peterson: Rep. Boswell Affirms Support for Livestock Competition Title in Farm Bill House Sign on Letter: Letter Signed by 64 Organizations (pdf) Senate Floor Amendment: Oppose Senator Roberts Price Discrimination Amendment (#3549) (pdf) Testimony: Delivered by Center staff John Crabtree to House Agriculture Committee Delivered by Iowa Farmers Union President Chris Petersen on behalf of the IFU and the Center for Rural Affairs to the Joint USDA/Justice Department Antitrust and Competition Workshop on Livestock in Fort Collins, Colorado on August 27, 2010... (attached immediately below)
Take Action Today!
GIPSA Comment Period Closed
Read the Center for Rural Affairs official comments here. And thanks to the thousands of folks who submitted comments.
Sec. Vilsack says no to industry call for more delay!Stand up and be counted for fair livestock markets!
USDA announced publication of "unreasonable preference" rulemaking on June 18, 2010. Read the Center's news release on this major livestock market reform victory here.
Guest Opinion: A Reasonable Hope, 6-14-10
Guest Opinion: The Case for Competition, 2-2-10
House Sign on Letter: Letter Signed by American Farm Bureau Federation, National Farmers Union, and Center for Rural Affairs (pdf)
Senate Sign on Letter: Letter Signed by American Farm Bureau Federation, National Farmers Union, and Center for Rural Affairs (pdf)
| Attachment | Size |
|---|---|
| Center IFU Joint Ft Collins Testimony.pdf | 243.46 KB |
| Vilsack letter to Congress - GIPSA.pdf | 82.32 KB |
