The Iowa senator has introduced legislation that would give the USDA the power to challenge a merger in federal court if the agency determined the proposed merger would be anti-competitive for family farmers.
His bill would require the Agriculture Department to review all ag mergers, give the agency the same ability as the Justice Department and the Federal Trade Commission to challenge a merger, and grant the USDA expanded authority to prohibit anti-competitive practices in agribusiness.
"Right now, the merger review process at the Justice Department is not consistent or open enough to ensure that producers' concerns are addressed," Grassley said. "My legislation would make sure that the question of whether or not an ag merger hurts a farmer's ability to compete in the market place is part of the equation, and it would empower the USDA to take action if farmers would be harmed by a mega-merger."
An April 27 a hearing of the Senate ag panel is scheduled.
Last week, Grassley won Budget committee approval of a resolution he offered to make sure the federal government has the necessary resources to enforce the antitrust laws and gives special attention to corporate transactions and anti-competitive practices in agriculture.
"I want to make sure that the Justice Department and the Federal Trade Commission dedicate significant resources to reviewing mergers and investigating complaints of unfair practices in the agriculture industry," Grassley said. "My resolution expresses the will of the U.S. Senate that ag mergers and business practices should be carefully scrutinized, especially during these economically hard times for farmers."
His bill and resolution are part of an effort Grassley started in 1998 to ensure the federal government weighs the effect of increased concentration on the family farmer. At Grassley's request the independent General Accounting Office is now studying how well the Justice Department and the USDA have met their respective obligations to enforce the antitrust laws specific to agriculture. A report from the GAO is expected this summer. Last year, Grassley was the only Republican senator to vote for an amendment offered by Sen. Paul Wellstone to place an 18-month moratorium on ag mergers.
Grassley is the third-most senior member of the Senate Judiciary committee, which oversees the Justice Department. He also serves on the Agriculture committee.