Grassley said he also wants to give USDA broad authority to outlaw unfair methods of competition in the agriculture industry ? including companies on the input and output side of agriculture ? because "the institution of the family farm should be valued in the review process just as the interests of consumers are considered by the government. The best way to do this is to give USDA the tools it needs to stand-up for the family farmer, including the right to challenge a merger in federal court. Healthy competition keeps the marketplace honest."
Grassley's plan would give USDA the ability to challenge an agri-business merger if it believes that it would cause substantial harm to the ability of family farmers to compete in the market. Here's how it would work:
The USDA Chief Economist and the newly-created position of Special Counsel for Antitrust Matters in the USDA Office of General Counsel would conduct an analysis of the merger to determine whether it would negatively impact the ability of family farmers and small independent producers to compete in the marketplace.
USDA would submit recommendations to DoJ/FTC, including suggested limitations or conditions on the merger, and would conduct negotiations with the merging parties to determine whether they can address USDA's concerns.
DoJ/FTC would be required to provide USDA with a formal response as to whether they agree with USDA's findings.
If USDA is not satisfied with the outcome of DoJ/FTC's review of and/or the restrictions and conditions placed on the merger, then USDA could challenge the merger in federal court.
Grassley said his bill would give USDA the resources it needs to handle this new authority. The bill also would provide for a new assistant attorney general at the Justice Department to oversee and coordinate antitrust matters that affect agriculture and would require USDA to respond to requests for detailed information about corporate structures, strategic alliances and joint ventures for agribusiness entities with annual sales in excess of $100 million annually.
Grassley has been working to ensure the federal government weigh the effect of concentration on the family farmer and small independent producer, as well as rural communities. In 1998, he asked antitrust regulators and enforcers at the Justice Department to begin evaluating any disproportionately negative impact on rural America brought on by the concentration trend. Grassley also helped to bring the top antitrust official from the Justice Department to Iowa to gain a better understanding of the effect of agribusiness concentration.
In addition, at Grassley's request the independent General Accounting Office is studying how well the Justice Department and the USDA have met their respective obligations to enforce the antitrust laws specific to agriculture.
Furthermore, Grassley will be requesting that Lugar convene a meeting agriculture committee members and other interested parties to seek a bipartisan solution.
Grassley is the third-most senior member of the Senate Judiciary Committee, which oversees the Justice Department. He also serves on the Agriculture Committee and is the only working family farmer in the U.S. Senate.