Senate Panel Discusses Agriculture Concentration
News Date March 12, 2007
A Senate Judiciary Subcommittee held a hearing last week to review federal antitrust enforcement activities and Sen. Chuck Grassley (R-Iowa) raised issues related to agricultural competition and agri-business consolidation. Witnesses from the Justice Department and Federal Trade Commission testified at the hearing.
Grassley's written statement expressed concern about too much concentration in the agricultural industry, particularly reduced market opportunities, possible anti-competitive and predatory business practices, vertical integration and fewer competitors. For example, he noted that in the pork industry, expanded packer ownership of hogs, exclusive contracting and captive supply are adversely impacting the ability of small independent producers and family farmers to compete in the marketplace.
Grassley's statement said the committee should consider whether the Justice Department's Antitrust Division should issue guidelines specific to agriculture, as it has done for other industries. In addition, he plans to craft legislation to deal with the unique antitrust concerns facing agriculture. (Contact: Charlie Ingram)