 May 9, 2007 |
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| USCA Supports Efforts to Clarify Market Competition Laws | ||
| San Lucas, Calif. (May 7, 2007)-The success of cattle producers depends on open, fair and competitive livestock markets. That is why the United States Cattlemen's Association (USCA) is pleased to support the efforts of Rep. Leonard Boswell (D-Iowa) to increase competition in the agricultural marketplace and protect producers from anti-competitive practices by enhancing market transparency. “It is encouraging to see competition legislation introduced in the House,” says USCA Marketing Committee Chairman and Region VIII Director Allan Sents. “This bill, The Competitive and Fair Agricultural Markets Act of 2007, and its companion on the Senate side (S. 622) will provide the cattle industry with several critical market reforms.” “The interpretation of current law has been completely muddled by court and administrative rulings. This bill clarifies the law and instructs the Secretary of Agriculture to define terms in the Packers and Stockyards Act. Clarification will enhance producer protections and allow for more balanced enforcement of current law.” “If passed, the Boswell bill (H.R. 2135) will eliminate a defense based on arguments of competitive injury,” says Sents. “A significant part of the defense in the Pickett v. Tyson case was the notion that an action is justified if a competitor is doing it, regardless of whether the action is right or wrong.” The legislation will also improve rulemaking by requiring the Secretary of Agriculture to write regulations defining the term “unreasonable preference” under the Packers and Stockyards Act. Lastly, the Boswell bill will create an Office of Special Counsel for Competition Matters within the U.S. Department of Agriculture (USDA). This office of Special Counsel will enhance enforcement of the Packers & Stockyards Act by investigating anti-competitive practices and prosecuting violators. The creation of this Office will allow producer concerns about violations of the Packers & Stockyards Act to be addressed by a single entity rather than having complaints lobbed back and forth between Grain Inspection, Packers and Stockyards Administration and the Department of Justice. “All of these reforms are critical to preserving open and fair competition in cattle markets,” says Sents. "The meat packers claim that they are complying with current law. If that is the case, then they have nothing to fear from an Office of Special Counsel charged with enforcing the law." "USCA supports the Boswell bill and Chairman Harkin’s companion bill in the Senate. These bills will bring reform back to the marketplace, and most importantly back to the producer. Clear interpretation and effective enforcement of existing competition laws will keep more efficient producers supporting more rural communities and promote a healthy, competitive future for the beef industry." |
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