R-CALF: USDA’s Motive For Investigating Competition In U.S. Markets Is Sincere

R-CALF USA CEO Bill Bullard attended an 8-hour markets competition workshop in
Iowa on Friday hosted by the U.S. Department of Justice (Justice) and the U.S.
Department of Agriculture (USDA). The departments’ stated goal of the workshops
is to explore competition and regulatory issues in the agriculture industry.

“I don’t believe this Administration would send out two Cabinet-level officials
to put on such a comprehensive public hearing as they did with this workshop if
they were not absolutely committed to listen to producers and find ways to
restore competition in our markets, and I believe they very clearly indicated
they are serious about correcting the ongoing antitrust and anticompetitive
practices that are harming our industry,” Bullard said. “Of course, we can
expect huge opposition from the giant multinational packers because they
certainly don’t want to lose the significant advantage they enjoy when antitrust
laws and the Packers and Stockyards Act are not properly enforced. We just hope
these workshops lead to timely and fundamental changes that will allow
independent U.S. cattle producers to once again capture their fair share of
profits in a competitive marketplace.”

Bullard said Agriculture Secretary Tom Vilsack said he believes the central
issue associated with the concentration of agricultural markets is whether
farmers and ranchers are receiving a fair shake, and that the purpose of the
hearing was to explore whether the current marketing system is fair. Vilsack
also noted that President Obama wants a new framework to reverse the ongoing
decline of Rural America.

U.S. Attorney Genera Eric Holder, according to Bullard, told the crowd that
Justice’s primary goal is to protect farmers and consumers from antitrust
activities and that preserving competitive markets in agriculture is a national
security matter.

U.S. Assistant Attorney General for Antitrust Christine Varney said there is now
unprecedented cooperation and coordination between Justice and USDA and that
both departments are on an unrelenting quest to find the right balance between
farmers, processors and consumers. She said market transparency is key to
maintaining a competitive market and that her agency would back up the expertise
of USDA in order to properly enforce the Packers and Stockyards Act, Bullard
said.

“I firmly believe that U.S. cattle producers need to view this
ongoinginvestigation into the competitiveness of the U.S. cattle
industryseriously because it may be our one and only opportunity to bring
forththe facts necessary to reverse the ongoing contraction of our
industry,”Bullard concluded. “What USDA and Justice need are real-life
examplesfrom farm and ranch families that describe the erosion of
competitionthat has occurred in our industry, so if you can attend any of
thefuture workshops, please do so.”

Four more workshops are scheduled: 1) Normal, Ala., May 21, 2010; 2)Madison,
Wis., June 7, 2010; 3) Fort Collins, Colo., Aug. 26. 2010; and,4) Washington,
D.C., Dec. 8, 2010. More information about the jointUSDA/Justice workshops,
along with instructions on how to submit writtencomments, is available athttp://www.justice.gov/atr/public/workshops/ag2010/index.htm<http://www.justice.gov/atr/public/workshops/ag2010/index.htm>
.

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R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers ofAmerica)
is a national, non-profit organization dedicated to ensuringthe continued
profitability and viability of the U.S. cattle industry.R-CALF USA represents
thousands of U.S. cattle producers on trade andmarketing issues. Members are
located across 47 states and are primarilycow/calf operators, cattle
backgrounders, and/or feedlot owners. R-CALFUSA directors and committee chairs
are extremely active unpaidvolunteers. R-CALF USA has dozens of affiliate
organizations and variousmain-street businesses are associate members. For more
information,visit www.r-calfusa.com or,
call406-252-2516.

Source:
R-CALF USA