02/28/06 Restoring competition to ag markets

American Rancher February 28, 2006 Iowa Senator Tom Harkin, the ranking Democrat on the Senate Ag Committee, has introduced legislation to improve competition in livestock markets and fairness in the production and sale of agricultural commodities. Harkin says his bill is aimed squarely at meat packing giants who he says use their market power to the disadvantage of producers and consumers alike. Harkin: "In the packing industry for example, four companies control 84% of the cattle market and four companies control 64% of the hog market. These large companies exercise a lot of power to skew the market in their favor." Harkin says a recent Government Accountability Study which showed USDA is actually blocking enforcement of the Packers and Stockyards Act, proves the need for his bill. Harkin: "My bill would make certain USDA has the authority through the Packers and Stockyards Act to go after the bad actors in the marketplace. And more importantly, it would light a fire under USDA to enforce the law. I propose designating a high profile point person whose sole responsibility is to investigate and punish unfair anti-competitive behavior in agricultural markets. My legislation would also clear legal obstacles preventing producers from bringing cases directly against packers to recover damages for unfair, manipulative or discriminatory market conduct." Harkins bill does have bi-partisan support in the Senate but he is still working on getting a similar bill introduced in the House. I'm Bob Hoff.