05/05/08 Packer ban dead; hearing on JBS acquisitions

Washington Ag May 5, 2008 There will be no ban on packer ownership of livestock in the new farm bill. Principals doing the negotiating stripped the packer ban provision and during a full session of the farm bill conference committee last Thursday night, Iowa Senator Charles Grassley's amendment to restore it failed. Grassley explained why he believed banning large packers from owning cattle more than 14 days before slaughter was needed. Grassley: "Packer ownership has resulted in an increase in packer market power by allowing the packers to stay out of the cash market for extended periods of time, often reducing farm-gate demand and driving down prices paid to independent producers." Elsewhere on the competition front, Wisconsin Senator Herb Kohl announced to farm broadcasters meeting in Washington D.C. last week, that his Judiciary subcommittee on anti-trust will hold a hearing this Wednesday on the proposed U.S. packer acquisitions by Brazilian based JBS. Kohl said the hearing will not only take a close look at the proposed JBS National Premium Beef and Smithfield Beef deals but also the Justice department's enforcement of anti-trust laws. I'm Bob Hoff.