DC Report:
Competition in the Farm Bill

OCM’s efforts are on track for substantial competition reform in the Farm Bill. Senator Agriculture Committee Chairman Tom Harkin (D IA) filed a comprehensive Competition Bill with bipartisan support. I list the co-sponsors here because you should know who is supportive - Senators Mike Enzi (R WY), Russ Feingold (D WI), Craig Thomas (R WY), Byron Dorgan (D ND), Claire McCaskill (D MO), and Max Baucus (D MT).

Senator Grassley (R IA) filed the packer ownership prohibition with bi-partisan support. Grassley also filed another very important bill requiring packers to buy at least 25% of their livestock on the spot market.

We believe these bills have a very strong chance of passage in the Senate Agriculture Committee. OCM members and friends should contact their Senators to support these bills.
The House Agriculture Committee has yet to see any competition bills filed. Chairman Collin Peterson (D MN) should receive requests to remedy this. Leonard Boswell (D IA) is the chairman of the Livestock Subcommittee on the Ag Committee. Iowa’s state senate has been quite active on competition at the state level. Boswell has been identified as an “at risk” Democrat by his own party. He should try to build his record of accomplishment, but has so far not chosen to act on competition.

The newly elected House Democrats (the “newbies”) are an interesting freshman class. They tend to be populist, especially on trade. Unfair international trade practices by China and other countries have much to do with our trade deficit. Unfair practices in agriculture have much to do with our farm problems. The newbies are restless, and may soon become more aggressive with the “Oldie” Democrats in the House.

The Republicans are still behind the times. This is not partisan, it is just fact. Senators Grassley, Enzi (R WY), and Thomas (R WY) are very good on ag competition issues. Thune (R SD) could be good, but waivers. Other Senate Republicans tend to support the packers. OCM members active in Republican state politics should put pressure on the party within their states. In the House, Barbara Cubin (R WY) and Dennis Rehberg (R MT) appear to have the right ideas on competition, but they are not on the House Ag Committee.

Competition is about free markets. It should not be partisan, but there is a partisan divide. Continued education of elected leaders is needed for competition in agriculture to achieve non-partisan status. Strong, fair rules are needed to govern all markets. It is merely good government.MS