Web site: www.competitivemarkets.com
Date:
Contact: Fred Stokes: 662.476.5568
Michael C. Stumo: 860.379.6199
OCM Praises House Minority Leader’s Support of Packer Ownership Amendment and Labeling
OCM praised a recently released letter by Richard Gephardt,
House Minority Leader, supporting the packer ownership and country of origin
labeling provisions for the farm bill. (See full text below). The letter, dated
“The market power of the meat packers can no longer be glossed over with efficiency rhetoric,” said Fred Stokes, OCM president. “Market power and efficiency are different things. We have seen bi-partisan support in the Senate and bi-partisan support in the House. Now Minority Leader Gephardt has made yet another strong statement in favor of competition.”
“First, I am concerned about the increased concentration in the agricultural economy, particularly in meat packing,” wrote Gephardt. “As you know, a handful of meat packers have come to dominate the market, setting prices and signing contracts that shut out smaller producers. Yet at the same time, any claims of increased efficiency have not been matched by lower prices for consumers. I ask that you support the Senate provision that will prevent the largest meat packers in the nation from owning or feeding livestock in competition with farmers.”
On country of origin labeling, Gephardt continued. “Second, I ask that you include the Senate provision on country of origin labeling for fresh agricultural products. This provision builds on the earlier House-passed provision, which passed by an overwhelming margin. The Senate expanded the labeling requirement to include fresh produce, peanuts and meat products. … Consumers should have this information about the food they eat so that they can make decisions on behalf and their families – this is a consumer’s right-to-know provision.”
The Organization for Competitive Markets is a multidisciplinary, nonprofit group of farmers, ranchers, academics, attorneys, and policy makers dedicated to reclaiming the agricultural marketplace for independent farmers, ranchers and rural communities.
*** full text of Gephardt letter follows ***
The Honorable Tom Harkin
Chairman
Senate Committee on Agriculture, Nutrition and Forestry
731 Hart Senate Building
The Honorable Richard Lugar
Ranking Member
Senate Committee on Agriculture, Nutrition and Forestry
306 Hart Senate Building
The Honorable Larry Combest
Chairman
House Committee on Agriculture
1026
The Honorable Charles Stenholm
Ranking Member
House Committee on Agriculture
1211
Dear Gentlemen:
I am writing to you to express my views over the direction of our Country’s farm, nutrition and rural development policy. As you know, rural communities have suffered tremendous economic loss since the passage of the last farm bill in 1996. Several years of record low prices for agricultural products has devastated family farmers, reduced competition and left our farmers more vulnerable than ever before to foreign economic crisis. The last farm bill failed to provide a safety net that could protect the family farm from these threats. As you know, Congress has had to repeatedly manage agricultural policy through emergency aid bills that are unpredictable and poorly targeted. Farmers have earned fair compensation on their investment and hard work in providing us the best food supply in the world, and this farm bill should provide it.
In addition, farmers, who make their living off the land, are being called upon more than ever to lead in the effort to improve our environment. From promoting clean water and wildlife protection, to the contribution agriculture can make to improving air quality, farmers face challenges but also offer tremendous potential. Expanding our commitment to farm conservation programs and investing in critical research programs is essential if we are serious about our commitment to protect the environment. This commitment should be reflected in this farm bill.
While
I congratulate you on coming to a tentative agreement on funding to address
some concerns about farm income and conservation, I am disappointed that our
new fiscal reality contributed to the difficult choices you made. A year ago, we were anticipating significant
non-social security surpluses that could have been used to address many of the
challenges facing rural
Beyond the tough fiscal issues, I believe there are several priorities that should be included in your final bill. First, I am concerned about the increased concentration in the agricultural economy, particularly in meat packing. As you know, a handful of meat packers have come to dominate the market, setting prices and signing contracts that shutout smaller producers. Yet, at the same time, any claims of increased efficiency have not been matched by lower prices for consumers. In fact, two years ago, when hog prices hit record lows, consumer prices stayed flat. I ask that you support the Senate provision that will prevent the largest meat packers in the nation from owning or feeding livestock in competition with farmers. Family farmers and ranchers will benefit, as will competition, by reducing livestock market distortion and providing enhanced access to packing plants for independent producers across the country.
Second, I ask that you include the Senate provision on country of origin labeling for fresh agricultural products. This provision builds on the earlier House-passed provision, which passed by an overwhelming margin. The Senate expanded the labeling requirement to include fresh produce, peanuts and meat products including beef, pork, lamb and farm-raised fish at the retail level. This is common information provided to consumers on virtually every other product they can buy. Consumers should have this information about the food they eat so that they can make decisions on behalf of themselves and their families – this is a consumer’s right-to-know provision.
The Senate labeling provision is supported by the American Farm Bureau Federation and the National Farmers Union, the Nation’s two largest farm organizations. In addition, consumer organizations including the Consumer Federation of America support mandatory country of origin labeling. This broad support is evidence of the importance these various interests place in this provision and the understanding that a consumer, armed with adequate information, will make the right choice. This provision also gives public health officials the information they need to quickly trace the path of food-borne pathogens or intentional contamination of our food supply.
Next,
I believe we need to recognize that
Finally, recent breakthroughs in agricultural research have shown us the potential for dramatically lowering production costs, minimizing impact on the environment, and improving the quality of the food we eat. I believe it is a mistake for us to under invest in agricultural research at this time. I also believe we may need to look at new ways to fund cutting edge agricultural research. I ask that you include a Senate provision creating a blue ribbon taskforce to consider the option of expanding federal assistance for agricultural research by creating a grant providing agency modeled on the highly successful National Institutes of Health.
I once again compliment you on your hard work to reach agreement on a final farm bill.
Sincerely,
Richard A. Gephardt
House Democratic Leader