Historic hearing held in Ankeny on market issues
By Jean Caspers-Simmet
simmet@agrinews.com
Date Modified: 03/25/2010 9:19 AM
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ANKENY, Iowa —U.S. Agriculture Secretary Tom Vilsack and U.S. Attorney General Eric Holder brought their first-ever joint workshop on agricultural competition to the FFA Enrichment Center at Des Moines Area Community College March 12 in Ankeny.
The event drew an estimated 800 people, and prior to last week's workshop, it had generated 15,000 written comments.
Vilsack said he is concerned about the future of rural America because 80,000 mid-size farm operations have been lost in the last five years.
"Loss of farms in the middle impacts the entire rural economy," Vilsack said.
The Obama administration has established a framework for a new rural economy, but more needs to be done.
"And that's what brings us here today," Vilsack said. "Great efficiencies have led to consolidation and less expensive food for consumers, but the central question is, are farmers and ranchers getting a fair shake?"
Seed companies control the lion's share of certain commodities, Vilsack said. The top four cattle packers control 80 percent of procurement, the top four hog packers control 65 percent of procurement and the top four food retailers control 37 percent of the market.
"Our hope is that these workshops help form and develop better policy," Vilsack said.
Holder said he was reminded of President Dwight Eisenhower's observation that "farming looks mighty easy when your plow is a pencil and you're a thousand miles form the cornfield."
"The challenges facing farmers and other leaders across our agriculture industry have become even more difficult," Holder said. "That's precisely why we've gathered for this historic discussion."
The Iowa event and four other workshops will provide the the Department of Justice and USDA officials with a more complete understanding of the agricultural industry, which is at the core of the American economy, he said.
A growing number of American farmers say that they find it increasingly difficult to survive by doing what they've done for decades.
"And we've learned that some of them believe the competitive environment may be to blame," Holder said.
Enforcement of antitrust laws doesn't fully address the concerns.
"That's why we're partnering with USDA to benefit from its deep expertise in your industry, and hopefully, to share ours," Holder said.
Sen. Chuck Grassley, R-Iowa, complimented Holder and Vilsack on their efforts to cooperate in fighting lack of competition in agricultural markets.
"I've been in Congress a long time and I've have not seen this sort of cooperation between USDA and the Justice Department," Grassley said. "It's sorely needed. The family farm is the basis on American agriculture and that needs to be preserved."
Bigger, Grassley said, is not necessarily bad.
"But it can lead to predatory business practices and behavior," Grassley said.