The Organization for Competitive Markets strongly supports the Competition Bill introduced today by Tom Harkin (D IA) as Chairman of the Senate Committee on Agriculture, Nutrition and Forestry.  Co-sponsors include 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).  Bipartisan sponsorship reveals the broad support antitrust and competition issues have in the Senate. 

“Agricultural markets are currently inefficient and increase risk for agricultural producers,” said Keith Mudd, OCM President.  “Adam Smith’s ‘invisible hand’ has been replaced by the ‘visible hand’ of corporate bureaucrats.  The Competition Bill addresses many major market problems that our government has been unwilling to solve under the past influence of meat packer lobbyists.”

The Competition Bill modernizes the legal rules governing fairness in marketing and contracting.  Existing rules have atrophied from USDA indifference, and misguided judicial decisions favoring packers and processors.  Crop farmers will gain protection from market unfairness for the first time.  Poultry growers will see relief from misrepresentation and concealment when contracting with poultry processors such as Tyson, Pilgrims Pride and Sanderson Farms.  Producers will be protected when bargaining collectively, without fear of corporate retribution and economic punishment.

“Markets must have clear rules to operate efficiently, minimize risk, and be fair.  Farmers and ranchers need both supply and demand, not just the demands of the economically powerful,” continued Mudd, “We believe there is strong support on Capitol Hill for these common sense measures, though we expect opponents to pay experts and commission reports to convince lawmakers to dispense with common sense.”