Competitive Environment for Family Farmers


Sen. Chuck Grassley issued a comment regarding unanimous Senate approval tonight of his legislation to ensure that the Agriculture Department protects independent livestock producers by enforcing the Packers and Stockyards Act.

Sen. Grassley's bill was passed as part of the Grain Standards Act reauthorization legislation. The Grassley language requires USDA to implement recommendations made in a September report released by the General Accounting Office and conducted at Sen. Grassley's request.

Grassley comment:

 "This bill is very important for family farmers who now face the lowest commodity prices in years. Agri-business has become so concentrated that independent producers question whether they can get a fair price for their products and if big companies compete unfairly and engage in predatory business practices.

 "The GAO report that came out last month said USDA has dropped the ball and failed to use its power and resources to protect family farmers from unfair competition. The worst part is, USDA has known for nearly a decade that it needed to restructure its operation to get the job done, but it's never delivered on its promises to make necessary changes. By requiring reforms legislatively, Congress has said, ‘no more excuses.' It's time for USDA to straighten out its priorities and put its lawyers and experts to work to ensure a competitive environment for the family farm."

The package passed tonight also includes Sen. Grassley's provision to reauthorize an agriculture mediation program for the next five years. During the farm crisis of the 1980s, Congress authorized federal participation in state-run farm mediation programs to give farmers and creditors a non-adversarial venue to resolve disputes. Since 1987, the federal government has provided matching funds to the states that sponsor mediation programs to encourage the resolution of disagreements outside the traditional process of an often time-consuming, costly and contentious litigation. Twenty-four states sponsor mediation programs, including Iowa.