Competition in the American Economy

Today President Biden signed an Executive Order on Promoting Competition in the American Economy. It includes the agriculture sector.

  1. He intends for the Department of Agriculture to toughen enforcement of the Packers and Stockyards Act by making rules that clearly identify unfair and unjust practices, reinforce the interpretation that a violation of the act doesn’t need to show harm to the whole industry – just one farmer is enough, dial back the practice of poultry companies controlling every aspect of a contract farmer’s operation while the farmer shoulders all the risk, updating the definitions and criteria for determining what is unfair under the Act, and shore up anti-retaliation protections for complainants under the Act. (The USDA had already announced on June 11 that it would begin work on the Packers and Stockyards Act.)
  2. He wants the USDA to fix country of origin labeling so consumers can tell where their food is from.
  3. He has directed the Department “to devise a plan to ensure that farmers have greater opportunities to access markets and receive a fair return for their products.” The order includes a list of suggested ways of doing this and ends with, “any other means that the Secretary of Agriculture deems appropriate.”
  4. In an attempt to ” to improve farmers’ and smaller food processors’ access to retail markets,” he is asking for a report on the effect of retail concentration “including any practices that may violate the Federal Trade Commission Act, the Robinson-Patman Act (Public Law 74-692, 49 Stat. 1526, 15 U.S.C. 13 et seq.), or other relevant laws” and also on “on grants, loans, and other support that may enhance access to retail markets by local and regional food enterprises.”
  5. And he’s ordered a report on ways in which intellectual property rights may “unnecessarily reduce competition in seed and other input markets.”

Federal Farm Policy-AFT

Free Range Conversations from American Farmland Trust (AFT) talks about federal farm policy.

Streamed live on Jan 21, 2021

AFT’s 2021 Transition Recommendations:

  • Develop a USDA Cover Crop Initiative
  • Establish a Commission on Farm Transitions
  • Maximize the Economic and Environmental Benefits of ACEP-ALE
  • Strengthening the Farmland Protection Policy Act
  • Create a Debt for Working Lands Initiative

Urban-Rural Divide

Bill Hogseth

Worth a read: Why Democrats Keep Losing Rural Counties Like Mine, by Bill Hogseth, chair of the Dunn County Democratic Party in Wisconsin, in Politico, 12/01/2020.

He details how consolidation in the food industry — that is, big companies buying out smaller ones and then moving on to consume each other — is devastating farmers and farming communities in the United States, and how the Democratic party isn’t helping.

“Farmers’ share of every retail food dollar has fallen from

about 50 percent in 1952 to 15 percent today. Corporations control more and more of the agriculture business…”

Antitrust action is a priority for rural voters, but the Democratic Party doesn’t seem to get it. Obama said the right things but didn’t follow through. “His Department of Agriculture balked when it came time to enforce anti-monopoly rules such as those in the Packers and Stockyard Act…”

Now Biden, is saying the right things, too. “In his rural plan, Biden pledged to ‘strengthen antitrust enforcement,’ but the term doesn’t appear until the 35th bullet point. For rural voters, antitrust enforcement is a top priority.” And shortly after publication of Hogseth’s piece, Biden announced his pick for Secretary of Agriculture — Vilsack, former secretary of agriculture under Obama.

“But my hope,” say Hogseth, “is for Democrats to listen to and learn from the experiences of rural people.”