Four farm state lawmakers, including Grassley, introduced legislation that would strengthenthe Packers and Stockyards Act of 1921. Under their new proposal, packers would no longer be ableto own and control livestock prior to purchase for slaughter. The bipartisan measure providesexceptions for farmers and ranchers who own and process livestock in producer-owned andproducer-controlled cooperatives.
"The independent livestock producer doesn't have a chance of getting a decent price whena meat packer controls so much of the process," Grassley said. "The bill we've introduced todaywould help create more competition in the marketplace and remove the taint of monopoly from themeat packing industry."
Grassley said the Packers and Stockyards Act should ensure fair access to the slaughter housegate whether a farmers markets 50 hogs or 5,000 hogs. He said prohibiting packer ownership woulddecrease the likelihood of price manipulation.
The bill introduced today by Sens. Tim Johnson of South Dakota, Grassley, Bob Kerrey ofNebraska, and Craig Thomas of Wyoming would:
prohibit meat packers and individuals who directly or indirectly control, or who arecontrolled by, or under common control with the packer, from owning, feeding or keepinglivestock for slaughter. The bill would allow packers to obtain livestock within 14 days ofslaughter to maintain a reasonable supply to operate plants;
exempt cooperatives that own, feed or keep livestock for slaughter if a majority of theownership interests in the cooperative are held by active cooperative members that raise,control, hold title to, and provide livestock to that cooperative;
exempt meat packers owned and controlled by livestock producers if the packer slaughtersless than two percent of the national annual slaughter; and,
require divestiture of swine ownership interests within 18 months, and of beef and sheepwithin one year.
Grassley said that the federal government "needs to do its job to protect fair competition. This bill is part of an effort to level the playing field so the family farmer can defeat unfairadvantages and enjoy prosperity on the farm in the next century," he said.
Earlier this week, the U.S. Senate gave final approval to an agriculture spending bill thatcontained legislation first promoted by Grassley and Sen. Tom Daschle of South Dakota to requiremeat packers to disclose the prices they pay for beef and pork. The new condition would make theinformation public through the USDA Agriculture Marketing Service. Grassley said thisinformation "is critical for independent operators to stay competitive." President Clinton is expectedto sign the bill that contains this legislation.