In order to increase market transparency, four senators said on Tuesday they would file legislation to require meatpackers to buy a portion of their slaughter cattle on the cash market. The bill also would create a contract library that discloses the purchase terms that packers offer for cattle, so producers might know if a fair price is being offered.
The USDA will create a $100 million loan-guarantee program to expand processing capacity in the meat industry and improve the infrastructure of the food chain, announced Agriculture Secretary Tom Vilsack on Monday. The program is "focused on the middle of the supply chain," he said, such as mobile processing units, new cold storage equipment and formation of cooperatives to gather, process and market farm goods.
Three months ago, Agriculture Secretary Tom Vilsack said the USDA would commit $500 million to expand meat and poultry processing capacity and create a more competitive livestock market. "I believe it is going to leverage literally billions of dollars in investment from investors and local governments," said Vilsack at a meat locker plant in Council Bluffs, Iowa.
With four companies dominating the meat industry, Congress and federal regulators must intervene to assure that livestock farmers get a fair price from processors or “if need be, bust them up,” the president of the National Farmers Union said at a Senate hearing on Wednesday. It was the …
Siding with farm activists, President Biden said "Big Ag is is putting a squeeze on farmers" and signed an executive order telling the USDA to rejuvenate the livestock, seed, fertilizer and retail food markets. The executive order on competition, reaching from the FDA to the Pentagon, called on the FTC to enact right-to-repair rules so farmers can fix their own tractors rather than take them to the dealership when software malfunctions.
The USDA will propose three rules to give cattle, hog and poultry producers more leverage in dealing with meat processors in an increasingly concentrated industry, said Agriculture Secretary Tom Vilsack. The initiatives would make it easier for a producer to prove unfair treatment by a processor and would write a new regulation on use of so-called tournament systems by processors to determine pay for poultry farmers.
The Biden administration earmarked $4 billion on Tuesday to strengthen the U.S. food system, including an expansion of local and regional food processing capacity. Aiming to increase competition, Agriculture Secretary Tom Vilsack said he hoped to see "new entries" in the highly concentrated processing sector.
To ensure fair prices for cattle producers, the USDA would require meatpackers to buy a specified number of cattle on the spot market and through negotiated "grid" trades under a Senate bill introduced on Tuesday. The bill, similar to legislation filed in September 2020, was backed by the American Farm Bureau Federation and the U.S. Cattlemen's Association.
From meat packers to seed companies, farm equipment to agrochemicals, the agriculture industry has become increasingly concentrated, leaving farmers with few options when it comes to buying inputs or selling their commodities. This has also become a potent political issue in rural areas, but …