"The bipartisan legislation approved by the Senate provides an 18-month phase out for pork and a six-month phase-out for beef production. That's basically feeder to fat when it comes to cattle," Grassley said. "In contrast, the latest proposal from Senate conferees gives big packers another four years to own, feed and kill livestock. That's almost three times as long for pork production and eight times as long for cattle. So it covers livestock that isn't even born yet. This gives big packers ample time to expand, choke out the spot market, and gain total control of the industry by working only with contract producers before the divestiture period concludes."
The Senate voted twice in favor of the ban on packer ownership sponsored by Grassley and Sen. Tim Johnson, of South Dakota. The latest offer made by Senate conferees would extend the divestiture period for four years for all livestock. Grassley said his staff was first asked about this kind of an offer three weeks ago by Johnson's office, and that he had sent a message back rejecting the suggestion. The proposal was revitalized among Senate conferees this week. Grassley is not a farm bill conferee.
"Those who think that this is an acceptable compromise don't understand feeding pigs and cattle," Grassley said. "While compromise is possible, we can't allow the packers to take an aggressive position during the divestiture period and this offer does exactly what we need to avoid.".
Grassley is a senior member of the Judiciary Committee, where he has taken legislative action and conducted aggressive oversight for a more competitive environment for family farmers amid growing concentration in agriculture.
"Putting this ban off beyond a reasonable time frame is about as helpful to independent producers as doing nothing at all. If we want a farm bill that's good for family farmers, Congress needs to pass legislation that takes action to ensure a competitive marketplace now," Grassley said. "It's just as important for consumers, too. Big packers talk about the cost-savings that comes from their owning, feeding and killing livestock, but that savings is never passed on to consumers in the grocery store."