ALL MY LIFE I HAVE LIVED AND WORKED ON A FARM. I RECOGNIZE THAT IOWA AND THE WORLD ARE CHANGING AND THAT AGRICULTURE CANNOT STAGNATE AND STAY THE SAME DECADE AFTER DECADE. IF WE ARE TO CONTINUE TO SURVIVE AND THRIVE INTO THE 21st CENTURY, IOWA MUST DIVERSIFY AND ADAPT. BUT THE BEST WAY TO DO THAT IS NOT BY THROWING AWAY THE PAST AND THE PRESENT. THE BEST WAY TO PREPARE FOR THE FUTURE IS TO BUILD ON THE BEST OF OUR HERITAGE. AND THE FAMILY FARMER IS ONE OF THE BEST THINGS ABOUT IOWA'S HERITAGE. I AM COMMITTED TO PRESERVING AND SUPPORTING THIS VALUABLE MEMBER OF IOWA'S COMMUNITIES.
ANY FARMER KNOWS THAT AGRICULTURE IS A RISKY BUSINESS. IF YOU'RE GOING TO BE A FARMER, YOU HAD BETTER BE PREPARED FOR UPS AND DOWNS. BUT FARMERS FEEL MORE VULNERABLE NOW THAN AT JUST ABOUT ANY TIME I CAN RECALL AND WITH GOOD REASON.
WE ALL KNOW THERE'S BEEN A SO-CALLED "MERGER-MANIA" GOING ON THROUGHOUT OUR NATION'S ECONOMY. LARGE CORPORATIONS ARE JOINING FORCES WITH OTHER LARGE CORPORATIONS TO FORM NEW BUSINESS GIANTS IN EVERY SECTOR OF THE ECONOMY AND AGRICULTURE IS NO EXCEPTION.
IN THE LAST COUPLE OF YEARS, THE AG INDUSTRY HAS SEEN A SIGNIFICANT NUMBER OF MULTI-MILLION AND -BILLION DOLLAR MERGERS AFFECTING GRAIN AND LIVESTOCK. IN THE FACE OF ALL THESE MERGERS AND NEW ALLIANCES, THE INDEPENDENT PRODUCER FARMING A THOUSAND ACRES OR LESS, SEES HIMSELF GETTING SMALLER AND SMALLER IN COMPARISON TO MANY OF HIS COMPETITORS. HE SEES HIMSELF HAVING FEWER AND FEWER CHOICES OF WHO TO BUY FROM AND SELL TO. YET, THOSE FARMERS KNOW, AS I DO, THAT THE INDEPENDENT FARMER IS ONE OF THE MOST EFFICIENT BUSINESSMEN IN OUR NATION'S ECONOMY. THAT'S WHY THE UNITED STATES CAN FEED ITSELF AND A GOOD PORTION OF THE WORLD. SO LONG AS THE MARKET PLACE IS FAIR AND OPEN, THE FAMILY FARMER CAN COMPETE.
I AM NOT SUGGESTING THAT ALL MERGERS ARE IN AND OF THEMSELVES WRONG OR UNFAIR TO FAMILY FARMERS. BUSINESSES MAY BE IN SITUATIONS WHERE THEIR SURVIVAL AND SUCCESS IS DEPENDENT ON JOINING FORCES WITH ANOTHER. THAT RIGHT IS A FUNDAMENTAL PRINCIPLE OF A CAPITALIST SYSTEM AND HAS TO BE PRESERVED. INDEED, I BELIEVE THAT FARMERS DON'T NEED TO BE PROTECTED FROM THE MARKETPLACE. BUT I BELIEVE WE SHOULD PROTECT THEIR ACCESS TO THE MARKETPLACE.
THAT IS WHY I AM INTRODUCING LEGISLATION TO GUARANTEE GREATER OPENNESS AND ACCOUNTABILITY TO THE MERGER REVIEW PROCESS AS IT PERTAINS TO AGRI-BUSINESS.
THE BILL I INTRODUCE TODAY WILL GIVE USDA, THE FEDERAL DEPARTMENT WITH THE BACKGROUND AND EXPERTISE IN AGRICULTURE, A MORE PROMINENT ROLE IN ASSESSING AG MERGERS. FURTHERMORE, MY BILL WILL PROVIDE A MUCH-NEEDED BALANCE IN THE FOCUS OF AG MERGER REVIEWS.
CURRENTLY, WHEN THE DEPARTMENT OF JUSTICE (DOJ) ASSESSES A PROPOSED MERGER, THEIR FOCUS IS WEIGHTED TOWARDS THE IMPACT A MERGER WOULD HAVE ON CONSUMERS. NO ONE, CERTAINLY NOT I, WOULD ARGUE AGAINST ENSURING THAT A MERGER DOES NOT HARM CONSUMERS. HOWEVER, GIVEN THE FACT THAT AG MERGERS, MORE SO THAN OTHER KINDS OF MERGERS, IMPACT A WAY OF LIFE, NOT JUST AN INDUSTRY, IT IS CRITICAL THAT WE GIVE EQUAL IMPORTANCE TO THE EFFECT THESE MERGERS HAVE ON PRODUCERS.
MY BILL WILL DO JUST THAT BY REQUIRING USDA TO DO AN ASSESSMENT OF HOW A PROPOSED CORPORATE UNION WILL AFFECT PRODUCERS AND THEIR ACCESS TO THE MARKET. MY BILL WILL KEEP DOJ IN THE DRIVER'S SEAT ON MERGERS, BUT WILL MAKE THE EXPERTISE AND KNOWLEDGE OF USDA A PROMINENT PART OF THE MERGER REVIEW RECORD.
I AM AWARE OTHER PROPOSALS REFORMING THE AGRI-BUSINESS MERGER REVIEW PROCESS ARE BEING CRAFTED. I AM CERTAINLY WILLING TO CONSIDER ALL SUGGESTED REFORMS. NONETHELESS, I BELIEVE MY BILL IS STRONG AND BALANCED IN SEVERAL RESPECTS. AS I MENTIONED, MY BILL PROVIDES A HEIGHTENED ROLE FOR USDA IN THE MERGER REVIEW PROCESS, GIVING PRODUCERS A SEAT AT THE TABLE WHEN MERGERS AND ACQUISITIONS ARE BEING REVIEWED BY DOJ OR FTC.
IN ADDITION, I WOULD LIKE TO HIGHLIGHT THE FOLLOWING PROVISIONS IN MY BILL:
A REQUIREMENT THAT USDA DO A MERGER REVIEW THAT FOCUSES ON THE NEEDS OF PRODUCERS AND WHETHER THE TRANSACTION WOULD CAUSE SUBSTANTIAL HARM TO FARMERS' ABILITY TO COMPETE IN THE MARKETPLACE.
THIS REVIEW WILL BE CONDUCTED SIMULTANEOUSLY WITH THE HART-SCOTT-RODINO REVIEW NOW DONE BY DOJ. THERE IS NO DISRUPTION IN THE CURRENT DOJ/FTC MERGER REVIEW PROCESS.
MY LEGISLATION ALLOWS FOR NEGOTIATIONS BETWEEN USDA AND THE PARTIES TO A PROPOSED MERGER IN ORDER TO WORK OUT ANY CONCERNS USDA HAS.
UNDER MY BILL, IF USDA'S CONCERNS ARE NOT SATISFIED, USDA MAY CHALLENGE THE MERGER IN COURT TO EITHER STOP THE MERGER OR IMPOSE CONDITIONS ON THE TRANSACTION.
FURTHERMORE, THIS MEASURE CALLS FOR THE CREATION OF A SPECIAL COUNSEL IN USDA FOR COMPETITION MATTERS, WHICH IS SUBJECT TO SENATE CONSIDERATION.
MY BILL PROVIDES MONEY FOR ADDITIONAL STAFF AT USDA AND DOJ.
THIS MEASURE ALSO PROHIBITS THE ENFORCEMENT OF CONFIDENTIALITY CLAUSES IN LIVESTOCK PRODUCTION CONTRACTS THAT PREVENT PRODUCERS FROM GETTING THE ADVICE THEY NEED TO MAKE BUSINESS DECISIONS IN THEIR BEST INTERESTS.
MY BILL PROVIDES CONTRACT POULTRY GROWERS THE SAME PROTECTIONS UNDER GIPSA THAT OTHER LIVESTOCK PRODUCERS HAVE.
FINALLY, UNDER MY BILL, THE COMPETITION PROTECTION AUTHORITIES OF USDA'S PACKERS AND STOCKYARDS DIVISION IS EXTENDED TO INCLUDE ANTI-COMPETITIVE PRACTICES BY DEALERS, PROCESSORS AND COMMISSION MERCHANTS OF ALL AG COMMODITIES.
I WOULD LIKE TO ADD THAT SEVERAL COMPONENTS OF THIS BILL ARE BASED ON PROPOSALS BY THE AMERICAN FARM BUREAU, THE LARGEST ORGANIZATION REPRESENTING PRODUCERS OF ALL COMMODITIES.
I BELIEVE THAT BRINGING TO THE TABLE A GREATER UNDERSTANDING OF AG PRODUCERS' NEEDS WHEN EXAMINING AG MERGERS IS THE BIGGEST MISSING ELEMENT TO MAKE THE MERGER REVIEW PROCESS AS FAIR AS POSSIBLE. CLOSING THIS GAP IS THE HEART OF MY PROPOSAL.
I REALIZE THAT DOJ CURRENTLY HAS CONSULTATIONS WITH USDA ON AG MERGERS. BUT I BELIEVE THE CURRENT PROCESS IS NOT CONSISTENT OR OPEN ENOUGH TO ASSURE PRODUCERS' THEIR CONCERNS ARE ADEQUATELY ADDRESSED.
THE APPROACH I ADVOCATE WILL ENSURE THAT PRODUCERS' CONCERNS AND NEEDS ARE FULLY DISCUSSED WHEN FEDERAL AGENCIES EXAMINE PROPOSED AG BUSINESS MERGERS. BY GUARANTEEING INCLUSION AND OPENNESS FOR SMALL, INDEPENDENT PRODUCERS, WE CAN GO A LONG WAY TOWARD ALLEVIATING THEIR UNDERSTANDABLE ANXIETY.
AS MY COLLEAGUES FROM RURAL STATES KNOW, AG CONCENTRATION IS ONE OF THE MOST IMPORTANT ISSUES IN AGRICULTURE TODAY. IT IS IMPERATIVE THAT WE MAKE MEANINGFUL PROGRESS ON THIS ISSUE BEFORE THIS CONGRESS ADJOURNS. AS I STATED EARLIER, I AM AWARE OF OTHER EFFORTS, PRINCIPALLY BY SENATOR DASCHLE AND SENATOR LEAHY, TO CRAFT A LEGISLATIVE RESPONSE TO THE RECENT WAVE OF AG MERGERS.
I COMMEND THEM FOR THEIR HARD WORK AND I APPRECIATE THEIR EFFORTS TO KEEP ME INFORMED OF THEIR PROGRESS. I DID NOT FEEL I COULD OFFER MY UNRESERVED ENDORSEMENT OF THE PROPOSAL THEY HAVE CRAFTED THUS FAR AND I HAVE CHOSEN TO INTRODUCE MY OWN BILL.
HOWEVER, I BELIEVE OUR PROPOSALS ARE CLOSE ENOUGH IN SCOPE, DIRECTION AND INTENT THAT WE CAN ACHIEVE A BIPARTISAN COMPROMISE SOONER RATHER THAN LATER. I WANT IT TO BE CLEARLY UNDERSTOOD THAT IT IS MY DESIRE TO WORK WITH MEMBERS FROM BOTH SIDES OF THE AISLE TO CALM FARMERS' FEARS ABOUT HIGH LEVELS OF AG CONCENTRATION.
I AM CERTAIN CONGRESS WILL NEED TO TAKE ADDITIONAL STEPS TO SECURE THE FREEDOM OF SMALL PRODUCERS TO COMPETE IN THE MARKETPLACE. BUT MY BILL WILL ASSURE THAT WHEN AG MERGERS ARE GIVEN THE NECESSARY REVIEW, THE SMALL, INDEPENDENT FAMILY FARMER WHO I AM PROUD TO SERVE, WILL NOT BE LEFT OUT.
I URGE MY COLLEAGUES TO JOIN ME IN HOLDING THE DOOR OPEN FOR FARMERS ACROSS THE COUNTRY AND I ASK FOR THE SUPPORT OF ALL THOSE WHO WANT TO PRESERVE THE BEST OF OUR NATION'S AGRICULTURE HERITAGE AND ENSURE THE SUPERIORITY OF U.S. AGRICULTURE FOR DECADES TO COME. THANK YOU.