In a letter to Miller, Grassley asked for the help of the attorney general's office in scrutinizing the purchase of IBP, Inc. by Tyson Foods, Inc. to see if it violates the antitrust laws or other Iowa consumer protection or agriculture laws. Grassley also asked Miller to consider using his leadership position on the National Association of Attorneys General to coordinate other state attorneys general interested in agriculture competition issues.
"State attorneys general have a significant amount of authority to review mergers and challenge them under the antitrust laws. Iowa's attorney general has been very involved in some antitrust matters, and I'd like to work with him to further pursue our common interest, and to get other state attorneys general interested, in a strong response to increased concentration in agribusiness and its negative impact on the family farmer," Grassley said.
In recent months, Grassley has expressed serious reservations about offers to purchase IBP, Inc., especially the one made by Tyson Foods, Inc. He urged the Justice Department to pay special attention to possible negative horizontal and vertical integration implications when it scrutinized the proposals under the antitrust laws. Earlier this week, Grassley was informed that the review period had ended and the Justice Department will not challenge the transaction based on a view that there would not be any effect on competition that would result in a violation that could be sustained in court.
"I remain very concerned that the high level of concentration in the meat industry that will come from this merger will mean big problems for independent producers in Iowa," Grassley said. "I'm reaching out to Attorney General Miller because he's demonstrated a commitment to antitrust issues, and it's critically important that we use every bit of power available to ensure there's a level playing field for the family farmer."
Grassley is a senior member of the Senate Judiciary Committee, where he has led the effort at the federal level to ensure a competitive environment with effective enforcement of anti-trust laws. He has addressed mergers affecting family farmers from transportation to marketing. And he has aggressively sought to improve current antitrust and ag competition law so it better responds to increased concentration in agriculture.
Grassley has authored several legislative measures, including a bill to restrict meat packer ownership of livestock, granting authority to the Agriculture Department to challenge agribusiness mergers, and requiring the USDA to improve its administration so it can better enforce the Packers and Stockyards Act. This proposal was approved late last year.