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Competition and Concentration in Agriculture


First USDA/ U.S. Department of Justice Workshop
on Competition Set for Iowa

Late last fall, the U.S. Department of Justice (DOJ) and U.S. Department of Agriculture (USDA) announced the dates and locations of a series of joint workshops in 2010 exploring competition, concentration and regulatory issues in agriculture industry. (See DOJ News release linked below)

The first meeting is scheduled for Friday March 12, 2010, at the Des Moines Area Community College’s FFA Enrichment Center in Ankeny, Iowa. The meeting, which is open to the public, begins at 9 a.m. and concludes with time for public testimony from 4:15 p.m. to 5:15 p.m. This first workshop will be the introduction to the series and will focus on seed technology and agricultural trends.

Of special interest is the afternoon panel on competition in the seed industry which will include a representative from the Monsanto Company, which is rapidly buying up much of the world’s seed resources, and a representative from the American Antitrust Institute, which recently released a detailed report on Monsanto’s dominance. Another afternoon panel on agricultural trends includes Professor Mary Hendrickson from the University of Missouri, who has conducted long-term research on consolidation of firms in livestock and poultry sectors and in the retail food sector.

The meeting is free to the public but those interested in attending should register online at https://go.dmacc.edu/ffa/agworkshop

These are the first joint USDA and U.S. Department of Justice workshops to ever be held to discuss competition and regulatory issues in the agriculture industry. The goals of the workshops are to promote dialogue among interested parties and foster learning with respect to the appropriate legal and economic analyses of these issues, as well as to listen to and learn from parties with experience in the agriculture sector.

The Department of Justice’s Assistant Attorney General for Antitrust Division Christine Varney and Agriculture Secretary Tom Vilsack will participate in the workshop and will be joined by Iowa Agriculture Secretary Bill Northey and Iowa Attorney General Tom Miller. They will participate in a round table discussion with presentations on current issues affecting farmers. Two panels focusing on the competitive dynamics in the seed industry and trends in contracting, transparency, and buyer power will follow. The first day of the series of workshops will end with an enforcer roundtable and opportunity for public testimony.

Other workshops are also scheduled for:

  • May 21, 2010, in Normal, Alabama on the poultry industry

  • June 7, 2010, in Madison, Wisconsin, on the dairy industry

  • August 26, 2010, in Fort Collins, Colorado, on the livestock industry

  • December 8, 2010 in Washington, D.C. on Margins.

For the detailed schedule of workshops go to :
http://www.justice.gov/opa/pr/2009/November/09-at-1226.html

The Iowa workshop schedule is:

  • Opening Remarks (9:00 a.m. - 9:15 a.m.)
    Tom Vilsack, Secretary of Agriculture, U.S. Department of Agriculture
    Christine Varney, Assistant Attorney General for Antitrust, U.S. Department of Justice
     

  • Roundtable Discussion and Presentation of Issues (9:15 a.m. - 11:30 a.m.)
      Tom Vilsack, Secretary of Agriculture, U.S. Department of Agriculture
      Christine Varney, Assistant Attorney General for Antitrust, U.S. Department of Justice
      Tom Miller, Attorney General, State of Iowa
      Bill Northey, Secretary of Agriculture, State of Iowa
      Tom Harkin, Senator, U.S. Senate (tentative)
      Chuck Grassley, Senator, U.S. Senate (tentative)
      Leonard Boswell, Congressman, U.S. House of Representatives (tentative)
      Invited: Chet Culver, Governor, State of Iowa

A farmer roundtable discussion and testimony will also be given at this time. Farmer panelists will be posted on the Web site at a later date.

  • Seed Competitive Dynamics Panel (1:00 p.m. - 2:15 p.m.)

Moderator:
James MacDonald, Chief, Agricultural Structure and Productivity Branch, Economic Research Service, U.S. Department of Agriculture

Panelists:
Ray Gaesser, Soybean and Corn Farmer, Corning, Iowa; Vice President, American Soybean Association; Former President, Iowa Soybean Association
Neil E. Harl, Charles F. Curtiss Distinguished Professor in Agriculture and Emeritus Professor of Economics, Iowa State University; Member of the Iowa Bar
Dermot Hayes, Professor of Economics and Finance, Pioneer Chair in Agribusiness, Iowa State University
Diana Moss, Vice President & Senior Fellow, American Antitrust Institute
Jim Tobin, Vice President, Industry Affairs, Monsanto Company

  • Agricultural Trends Panel (2:15 p.m. - 3:15 p.m.)

Moderator:
Phil Weiser, Deputy Assistant Attorney General, U.S. Department of Justice

Panelists:
Brian Buhr, Professor and Head of Department, Applied Economics, University of Minnesota
Rachael Goodhue, Associate Professor, Department of Agriculture and Resource Economics, University of California, Davis
Mary Hendrickson, Extension Associate Professor of Rural Sociology, University of Missouri
John Lawrence, Professor of Economics, Iowa State University
Chuck Wirtz, pork producer, Whittemore, Iowa
Patrick Woodall, Research Director, Food & Water Watch

  • Enforcer Roundtable Discussion Panel (3:30 p.m. - 4:15 p.m. )

Moderator:
Mark Tobey, Special Counsel for State Relations and Agriculture, U.S. Department of Justice

Panelists:
Steve Bullock, Attorney General, State of Montana
Richard Cordray, Attorney General, State of Ohio
John Ferrell, Deputy Under Secretary for Marketing and Regulatory Programs, U.S. Department of Agriculture
Stephen Obie, Director, Division of Enforcement, Commodity Futures Trading Commission
William Stallings, Assistant Section Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice

  • Public Testimony (4:15 p.m. - 5:15 p.m.)

This is an opportunity for those in the audience to make comments in an open forum.

Additional updates and information will be posted on the Antitrust
Division's agriculture workshop Web site at http://www.justice.gov/atr/public/workshops/ag2010/index.htm

While no streaming web cast will be available, transcripts will be available for review at a later date on the Antitrust Division's Web site.

Individuals seeking more information on the workshops should contact agriculturalworkshops@usdoj.gov

Press Contacts:
U.S. Department of Justice, Office of Public Affairs
Gina Talamona, 202-514-2007
U.S. Department of Agriculture, Office of Communications
Jim Brownlee, 202-720-4623

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Pre and Post Workshop Events Planned; Written Comments Welcome too!

According to many farmers and ranchers, the DOJ and USDA workshops are long overdue as an essential step to address concentration of ownership within agriculture.

To help make the most of the workshops, a group of organizations are hosting “Unleash Food Democracy: An Evening Public Event” in Ankeney, Iowa on Thursday March 11, 2010, prior to the next day’s workshop.

The March 11 event will begin after 6:30 p.m. (time and details to be announced later) at the Best Western Metro North at 1333 SE Delaware Avenue, Ankeney, Iowa. Sponsors include National Family Farm Coalition, RAFI USA, Food First, WhyHunger, Food and Water Watch and others.

On Friday March 12, immediately following the DOJ and USDA workshop, the Organization for Competitive Markets (OCM) will host a debriefing evening reception with food, beverages, networking, and visiting. This reception will also be at the Best Western Metro North. Contact OCM Executive Director Fred Stokes at tfstokes@hughes.net with the number of people from your group planning to attend the reception.

Location and contact info:
Best Western Metro North
1333 SE Delaware Avenue
Ankeny, Iowa 50021-9771
phone 515.964.1717
fax 515.964.8781

How to Submit Written Comments

USDA and the DOJ need to hear from everyone affected by corporate dominance of the food system - farmers, ranchers, small processors, retailers, and consumers who are concerned about how market concentration constrains food democracy. Each of the five workshops being held around the country in 2010 will focus on a handful of concerns. The first workshop in Iowa on March 12 launches the entire series with discussions of seed technology, vertical integration, market transparency, and buyer power.

If you cannot make the Ankeney workshop or any of the others, written comments should be submitted in both paper and electronic form no later than December 31, 2010.

Hardcopy submissions: Use the following caption on each submission:
“Comments Regarding Agriculture and Antitrust Enforcement Issues in Our 21st Century Economy”

Mail or deliver two (2) copies of each submission to:
Legal Policy Section
Antitrust Division
U.S. Department of Justice
450 5th Street, NW, Suite 11700
Washington, DC 20001

The Antitrust Division requests that, where possible, the paper copies of each comment be sent by courier or overnight service.

Electronic submissions: An electronic version of each comment should be submitted to agriculturalworkshops@usdoj.gov
Include “Comment” in the subject line.

Electronic submissions must include the original source file (Word, WordPerfect, PowerPoint, Excel, etc.). Submissions in PDF only format will not be accepted.

Updates and additional information about the workshops will be posted on the Antitrust Division’s website at www.usdoj.gov/atr/events.htm

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Resource Links:
The following links are not all inconclusive of the information out there, but are representative of key information:

Department of Justice News Release
 http://www.justice.gov/opa/pr/2009/November/09-at-1226.html)

Organization for Competitive Markets
http://www.competitivemarkets.com/

OCM’s Comments on the DOJ/USDA Workshops January 13, 2010
http://www.competitivemarkets.com/index.php?option=com_content&task=view&id=340&Itemid=50

RAFI USA (Rural Advancement Foundation International)
http://www.rafiusa.org/

National Family Farm Coalition
http://www.nffc.net/

Farmer to Farmer Campaign (on seed concentration and seed technology)
http://www.farmertofarmercampaign.com/

National Sustainable Agriculture Coalition’
http://sustainableagriculture.net/blog/doj-usda-workshops/

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For more information on the Kansas Rural Center and farm and food policy,
contact Mary Fund at 785-873-3431 or ksrc@rainbowtel.net .

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