Leaders discuss concentration, competition in agriculture

ANKENY – U.S. Attorney General Eric Holder said to expect a historic era of enforcement as officials gathered in Iowa Friday to talk about the concentration of the agriculture sector and the effect it has had on smaller family farmers.

Holder and U.S. Agriculture Secretary Tom Vilsack hosted a forum meant to get input on rural issues from farmers and other stakeholders. Friday's packed event at the Des Moines Area Community College campus kicked off a series of workshops throughout the country.

Holder called Friday's forum historic, noting that the federal justice and agriculture departments had never come together for a public discussion on competition and regulatory issues in agriculture.

“We know that a growing number of American farmers find it increasingly difficult to survive by doing what they have been doing for decades,” Holder said.

Holder said they will be able to create better policies by partnering with the USDA.

“We want to be in the field listening to the American people, and then basing policies on what their needs are,” Holder said.

But Holder said they want people to understand they are business friendly and that they do not want to try to stifle innovation.

“We're not looking to hurt anybody here; we don't come into this with preconceived notions. All we are looking for is balance and for fairness,” Holder said.

Vilsack said the central question is whether farmers and ranchers are getting a fair shake.

“We know that seed companies control in some cases the lion's share of certain commodities. Does that help or does that hinder farmers and ranchers?” Vilsack said.

He also pointed to the hold meatpackers and top retailers have on the market.

Assistant U.S. Attorney General for Antitrust Christine Varney drew applause when she said they would be looking at any attempt to maintain or extend a monopoly through the use of patent laws.

She said when the department sees mergers, they look closely at the resulting concentration.

“When you have a tremendous amount of market share, you have the responsibility to behave in ways that keep the competitive playing field open,” Varney said.

U.S. Sen. Charles Grassley, R-Iowa, said there's not enough competition and too much concentration.

“I see it not only as a problem for today but as a problem for young farmers getting started, getting into agriculture, keeping the next generation of family farmers strong,” Grassley said.

He called the family farm an important institution that needs to be preserved, and hopes the talks lead to competition guidelines for agriculture

Vilsack, Iowa's former governor, stressed his concerns for rural America as less than 1 percent of the population is involved in the farming business.

The country has seen an increase in the number of farms with over $500,000 in sales, Vilsack said, while the number of middle-sized farms decreased.

“When we lose farms in the middle, it also impacts directly, the entire rural economy,” Vilsack said.

Today's rural America has higher poverty and unemployment rates than the rest of the country, as well as an aging population and less educated work force, Vilsack said.

Mark Lauritsen, national director of the packinghouse division for the United Food and Commercial Workers, was pleased so many people were being included in the talks.

“It's encouraging that for the first time in my life, and I've been involved in the meatpacking industry for over 25 years, that all the stakeholders are here to be listened to,” Lauritsen said.

John Crabtree, spokesman for the Center for Rural Affairs, was optimistic about what federal leaders had to say at the forum, but said whether the event was history in the making or a “dog and pony show” depends on what happens afterward.

“At the end of the day, the question is are they going to listen to family farmers and ranchers they hear from or are they going to listen to industry,” Crabtree said.