Grassley, Smith Introduce Bipartisan Legislation to Study Economic Impact of Concentration in Livestock Industry

Grassley, Smith Introduce Bipartisan Legislation to Study Economic Impact of Concentration in Livestock Industry

The four largest beef packing corporations control 85% of the market

Click HERE for audio

WASHINGTON - Senate Agriculture Committee members Chuck Grassley (R-Iowa) and Tina Smith (D-Minn.) introduced the Livestock Consolidation Research Act, bipartisan legislation to support research into the economic impact of livestock market consolidation on farmers, ranchers and consumers.

"Consolidation in the meat and poultry industry impacts Iowa producers and consumers alike, and right now, they're feeling the squeeze. The current patchwork of available data isn't enough to tackle this problem. Our bipartisan legislation will work to address ag concentration by providing farmers, ranchers and shoppers a full picture of how the market is working," Grassley said.

"Just a handful of large companies dominate the meat and poultry processing industry, which means higher prices for consumers and shrinking earnings for farmers. On top of that, farmers and ranchers are dealing with the worst farm economy in thirty years, skyrocketing input costs, and a cost-of-living crisis at home. We can all see that this market concentration spells disaster," Smith said. "Our bipartisan bill would bring to light the impact of this consolidation on farmers and consumers and help us create the best possible solutions to fix the problem. I look forward to working with Senator Grassley and my colleagues to pass this legislation as part of a Farm Bill."

Click HERE for audio of Grassley discussing the legislation.

Background:

Cattle producers often make pennies on the dollar due to a lack of transparency and competition in the cattle processing industry, where just four companies control 85% of the market. The lack of competition means farmers get less for their products, while consumers pay more at the grocery store.

The Livestock Consolidation Research Act moves beyond existing research to discover the impact of this consolidation on farmers and ranchers, as well as the downstream impacts on consumers. The legislation directs the Department of Agriculture's Economic Research Service to conduct this research.

Grassley and Smith plan to push for the bill's inclusion in the research title of the Farm Bill, which could form a base of data to inform future decisions. The bill has been endorsed by the National Farmers Union.

The full text of the legislation is available HERE.

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