ACTIONS TO ADDRESS CONCENTRATION & PROMOTE COMPETITION Release No. 0181.97 Tom Amontree (202) 720-4623 tamontree@usda.gov Jim Petterson (202) 720-4623 jpetterson@usda.gov GLICKMAN ANNOUNCES ACTIONS TO ADDRESS CONCENTRATION & PROMOTE COMPETITION IN AGRICULTURAL MARKETS WASHINGTON, June 4, 1997--Agriculture Secretary Dan Glickman today announced new actions and reviewed progress made by USDA in regulatory enforcement, research and education, and market information, to address concentration in agriculture and promote competition in markets. The actions reflect an important concern raised by the USDA Advisory Committee on Agricultural Concentration--the need for a level playing field to promote fair and open competition. "I continue to be concerned about the concentration of more and more of the agriculture industry into fewer and fewer hands," Glickman said. "I believe it is USDA's responsibility to ensure that markets are fair and open, and to make certain our efforts keep pace with a changing market. We also must take all possible steps to promote opportunities for successful small- and medium-sized operations. "The Clinton Administration is committed to achieving these goals, and we have already taken a wide range of important actions to address concerns about concentration. But, we believe Congress must provide us with additional tools to ensure fair trade and swift correction of anti-competitive practices," Glickman said. Specifically, Glickman said that he will ask Congress to: * Strengthen Enforcement of the Agricultural Fair Practices Act -- The Department will ask Congress to amend the Agricultural Fair Practices Act of 1967 (AFPA) to provide USDA with administrative enforcement and civil penalty authority. This will help ensure fair treatment of producers in the market, regardless of their membership or affiliation with a producers' association. Currently, violations of the AFPA must be referred to the Department of Justice or pursued through private legal action. Civil penalty and administrative enforcement authority for USDA would enable more timely and effective enforcement of violations such as discrimination or failure to bargain fairly with producers because of affiliation with or membership in an association. * Expand Enforcement of the Packers and Stockyards Act -- The Department will ask Congress to amend the Packers and Stockyards Act (P&S Act) to provide the Department with administrative enforcement authority for violations by live poultry dealers, as currently exists for violations by meat packers. At present, live poultry dealers are not subject to the same enforcement procedures as meat packers for alleged violations of section 202 of the P&S Act, and cases alleging violation of section 202 by live poultry dealers must be referred to the Department of Justice. New administrative authority for the Department will provide more uniform enforcement, maximize the effectiveness of current resources under the P&S Act, and provide a more effective and timely deterrent to behavior in violation of the Act. In addition to these legislative proposals, Glickman also announced several new actions the Department is taking to address concentration or anti-competitive practices in agriculture, including restructuring the Grain Inspection, Packers and Stockyards Administration (GIPSA) in response to an independent review of its enforcement of the anti-competitive prohibitions found in the Packers and Stockyards Act. * Strengthen Investigations Into Anti-competitive Practices -- USDA will strengthen investigative activities by placing economic, statistical, and legal expertise into GIPSA field offices. This restructuring will affect both headquarters and field offices, and will enhance USDA's focus on protecting the industry and public from anti-competitive and unfair trade practices and providing financial protection for livestock sellers. The organizational changes will reflect geographic shifts in livestock and poultry production, slaughter and processing. "This fundamental restructuring will enable USDA to investigate more effectively anti-competitive practices in these industries and ensure producers that we are aggressively enforcing the law to keep the market fair and open to all producers, large and small," Glickman said. "But, for GIPSA to be equipped fully to address anti-competitive practices in the marketplace, we also need Congress to fund fully our fiscal year 1998 GIPSA budget request. That request includes an additional $1.65 million for increased legal, economic, and statistical expertise to pursue investigations of anti-competitive issues, and $750,000 for investigation and enforcement activities in the poultry area." Glickman pointed to significant progress made by USDA in providing new and enhanced market information reports. In addition to the new market information reports issued last fall, USDA is now issuing a new weekly report detailing imports of meat and poultry products, and plans expansion of the pilot project for pork producer price reporting to three additional states. Final preparations are also underway to release a weekly report on live cattle, hog, and sheep crossings from Canada and Mexico. Secretary Glickman also announced that the Department will launch an education and outreach effort to help producers use this new information in today's global marketplace. * Broaden producer education and outreach in risk management and marketing -- The Department will convene a roundtable meeting this summer, inviting leaders of producer and agribusiness groups, and the research, academic, and cooperative extension system communities. The Department will seek comments to focus current and planned research and education initiatives to address risk management strategies, contracting, strategic planning and decision making. Glickman also announced actions that USDA is taking to address concerns that USDA's research does not sufficiently benefit small farmers. * Ensure unbiased research by USDA -- To ensure that USDA's research addresses problems of small- and medium-sized farming operations, the Research, Education, and Economics mission area has arranged for the National Academy of Sciences to conduct an independent review of the Department's research program. "I am committed to doing everything possible to help small and independent farmers compete in today's marketplace," Glickman said. "This independent review by the National Academy of Science will help to ensure that these farmers benefit from the wide variety of research conducted by USDA." # NOTE: USDA news releases and media advisories are available on the Internet. Access the USDA Home Page on the World Wide Web at http://www.usda.gov