San Lucas, Calif. (May 24, 2007) -- Today, the House Agriculture Subcommittee on Livestock, Dairy and Poultry voted on its mark-up for the 2007 Farm Bill title. Absent from the mark-up was the competition reform title, the Competitive and Fair Agricultural Markets Act of 2007 (H.R. 2135), proposed by Subcommittee Chairman Leonard Boswell (D-Iowa) and supported by a coalition of 63 grassroots organizations including the United States Cattle Association (USCA).
“Producers desperately need competition reform to return transparency and fairness to the agricultural marketplace, and we thank Chairman Boswell for his support on this issue. But USCA is extremely disappointed that the Subcommittee chose to ignore the coalition letter and leave the provisions of H.R. 2135 out of the mark-up,” says USCA Marketing Committee Chairman and Region VIII Director Allan Sents.
Despite the support of the competition coalition, no competition provisions were included in the Subcommittees original mark-up. Prior to the vote, there was hope that Chairman Boswell would submit the language in H.R. 2135 as an amendment to the mark-up but a lack of support from the Subcommittee caused him to hold back on the amendment.
However, Chairman Boswell submitted and passed an amendment reforming the current contracting system and providing voluntary arbitration for livestock and poultry contracts. This amendment allows the producer and the integrator to utilize arbitration after a dispute arises if they both agree arbitration is needed. The arbitration amendment passed with an 8-6 vote that split the Subcommittee down party lines with the sponsor's party voting in support.
The other livestock amendment passed by the Subcommittee was a measure first introduced by Rep. Steve Kagen (D-Wisc.) that provides relief to domestic veal farmers hurt by market-depressing prices as a result of the North American Free Trade Agreement (NAFTA). This amendment also passed by an 8-6 vote with the sponsor's party voting in support.
“Grassroots producers from all sectors are overwhelmingly in favor of competition reform,” says Sents. “But the packers and their representatives lobbied hard against the reforms proposed in H.R. 2135. The meat packers claim that they are complying with current law. If that is the case, then they have nothing to fear from a competition reform measure designed to clarify and enforce current law for the betterment of the industry.”
“While USCA is discouraged by the Subcommittee’s oversight, the cattle industry needs these reforms and USCA is not giving up,” says Sents. “The Boswell bill was the companion to a Senate title (S. 622) introduced by Chairman Tom Harkin (D-Iowa). USCA is going to continue to push for meaningful competition reform in the Farm Bill and focus our efforts on making sure that the provisions in the Harkin Bill are contained in the Senate version." |