The Organization for Competitive Markets strongly supports new antitrust legislation filed by Senators Charles Grassley (R IA), John Thune (R SD) and Herb Kohl (D WI).  The Senators filed the Agriculture Competition Enhancement Act of 2007 today to begin reining in the U.S. Department of Justice (DOJ) Antitrust Division’s misguided antitrust laxity.

“The U.S. Department of Justice cannot seem to find a merger it does not like,” said Keith Mudd, OCM president.  “In 2007 alone, DOJ has approved Smithfield Foods acquisition of Premium Standard Farms which additionally concentrates the pork packing industry.  It also approved Monsanto’s acquisition of Delta & Pine Land Company giving Monsanto ninety eight percent (98%) of the transgenic cotton seed market.”

The bill, if passed, will require the drafting of agriculture-specific merger guidelines with the specific characteristics of ag markets in mind.  An Agricultural Competition Task Force will be created to assist the process.  Reviews of agribusiness mergers from the last five years are required.  Additionally, agribusinesses will bear the burden of proving their merger will not lessen competition, instead of the government bearing that burden.

“The Supreme Court’s recent decision to relax price fixing enforcement makes clear that antitrust jurisprudence is in trouble,”  continued Mudd.  “Congress must intervene to turn the tide.  Farmers and consumers are best served by competitive markets which produce innovation, fair prices and choice.  America did not become great through economic dictatorship.”