Page 12—Keystone Farm Show Section 1, Lancaster Farming, Saturday, January 2, 1999
WASHINGTON, D.C. Na
tional Farmers Union (NFU) Pre
sident Leland Swenson applauded
the decision by Senate Agriculture
Committee Chairman Richard
Lugar, R-Ind., to hold a hearing to
examine concentration in agricul
ture.
The hearing will take place Jan.
26. On Nov. 18, NFU wrote lead
ers of the Senate and House agri
culture panels requesting hearings
to investigate the effect of consoli
dation on producers. The request
followed news of a proposed mer
ger between the nation’s two larg-
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NFU Pleased Senate Ag Committee
To Hold Hearing On Concentration
est grain purchasers, Cargill, Inc.,
and Continental Grain Company.
“Several members of the agri
culture committee have expressed
concerns about the challenges of
widespread concentration in the
farm sector. We applaud Chair
man Lugar for making this issue
the first order of business when
Congress reconvenes,” said Swen
son. “We hope the hearing will
shed some light on merger mania
and its ramifications for the na
tion’s farm communities.”
Eveiy major sector of agricul
ture, including the seed, packing,
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chemical, transportation, grain
and livestock industries, has un
dergone consolidation in recent
years. Four packers control rough
ly 87 percent of the cattle slaugh
ter business and five firms control
more than 60 percent of the pork
packing industry. Recent acquisi
tions of major seed interests by
Monsanto and consolidation in the
railroad industry have significant
ly reduced the number of players
in those sectors as well.
“Concentration has virtually
eliminated competition in many
regions of the country, leaving
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farmers with few buyers for their
commodities. We will press the
committee to investigate the rela
tionship between concentration
and low commodity prices as well
as the growing spread between
prices farmers receive and prices
consumers pay for food at the re
tail level," Swenson said.
NFU has been a leader in the ef
fort to call attention to the problem
of concentration in agriculture. In
recent weeks, NFU has:
• Asked President Bill Clinton
to immediately form a presidential
commission to investigate the
tvu
trend of concentration in the in
dustry.
• Called on President Clinton to
issue an executive order placing a
moratorium on farm sector mer
gers pending the outcome of net
farm income impact studies.
House Agriculture Committee
Laiy Combest, R-Texas, has pre
viously announced plans to hold a
similar hearing, although no date
has been set.
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