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Issues of Concern to Farmers Workshop Transcript

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Issues of Concern to Farmers Workshop Transcript 1 UNITED STATES DEPARTMENT OF JUSTICE UNITED STATES DEPARTMENT OF AGRICULTURE Public Workshops Exploring Competition Issues in Agriculture A Dialogue on Competition Issues Facing Farmers in Today's Agricultural Marketplace Des Moines Area Community College FFA Enrichment Center Ankeny, Iowa March 12, 2010 9:30 a.m. Reported by: SueAnn Jones, CSR, RPR JOHNSON REPORTING SERVICES (515) 224-1166 2 1 P R O C E E D I N G S 2 SECRETARY TOM VILSACK: Well, I want 3 to first of all welcome all to this meeting and 4 workshop this morning. I want to thank Rob Denson 5 and the folks at DMACC for giving us this 6 tremendous facility to operate in, and Rob, it's 7 good to see you, and thanks for all that DMACC is 8 doing for the young people who are in the community 9 college. 10 I want to thank all who are here 11 today. It's a great turnout. I also want to thank 12 the over 15,000 people who have already commented 13 as a result of the announcement of these workshops. 14 We will have a total of five workshops throughout 15 the country. 16 May 21 we will be meeting in Normal, 17 Alabama, to talk about poultry. On June 7 we'll be 18 in Madison, Wisconsin, to talk about the dairy 19 industry. On August 26 we'll be in Ft. Collins, 20 Colorado, to talk about livestock, and December 8 21 we will be in Washington, D.C. to talk about 22 margins. 23 We are certainly pleased and 24 appreciative of the fact that Senator Grassley and 25 Congressman Boswell, Lieutenant Governor Judge, JOHNSON REPORTING SERVICES (515) 224-1166 3 1 Secretary Northey are here and Attorney General 2 Miller for their time, but we are very, very 3 appreciative of the fact that the attorney general 4 of the United States is here, and I'll have more to 5 say about him in a few minutes. 6 And I also want to welcome Christine 7 Varney who is an Assistant Attorney General for the 8 Antitrust Division. 9 Let me start off by saying how deeply 10 concerned I am about rural America. When I was 11 born in 1950, 15 percent of the population of this 12 country were in the farming business, and today 13 less than 1 percent of our population is in the 14 farming business. 15 Our farmers in this country are the 16 most productive in the world. In 1950 a single 17 farmer would be responsible for feeding 20 people. 18 Today that number is a single farmer is responsible 19 for feeding 150 people. These are the individuals 20 who are responsible for our food, our water, an 21 ever increasing amount of energy, an export 22 surplus, and one out of every twelve jobs in 23 America. 24 Despite that extraordinary 25 productivity, only 11 percent of family farm income JOHNSON REPORTING SERVICES (515) 224-1166 4 1 comes from farming operations. We have seen a 2 significant reduction in the number of farmers in 3 the middle. Our last ag census indicated 108,000 4 new farming operations in the category of less than 5 $10,000 in sales, an increase in the number of 6 farms with over $500,000 in sales of about 40,000, 7 but a loss of 80,000 farms in the middle in the 8 last five years. 9 And when we lose farms in the middle, 10 it also impacts directly the entire rural economy. 11 Today's rural America has a higher poverty rate 12 than the rest of the country, a higher unemployment 13 rate than the rest of the country, significantly 14 less per capita income than the rest of the 15 country, an aging population, a workforce that is 16 less educated, and well over 50 percent of our 17 rural counties have lost population since the last 18 census. 19 The President has instructed the 20 Department of Agriculture to establish a framework 21 for a new rural economy, and we're making 22 investments in broadband, in new energy 23 opportunities, creating new markets here and 24 abroad, developing ecosystem markets, and expanding 25 conservation and forest restoration, all designed JOHNSON REPORTING SERVICES (515) 224-1166 5 1 to provide us additional income for our farm 2 families. 3 But it's obvious that more needs to be 4 done, and that's what brings us here today. I 5 think we have to recognize that great efficiencies 6 have led to consolidation. They've also resulted 7 in less expensive food for consumers in this 8 country. So the central question is, are farmers 9 and ranchers in this country currently getting a 10 fair shake? Is the marketplace providing a fair 11 deal to all who are in the farming and ranching 12 business? Is there sufficient transparency in the 13 process? 14 We know that seed companies control in 15 some cases the lion's share of certain commodities. 16 Does that help or does that hinder farmers and 17 ranchers? We know that the top four cattle packers 18 control roughly 80 percent of procurement. The 19 spot market in cattle was 68 percent in 1999. 20 Today it's roughly 52 percent. 21 We know the top four hog packers 22 control 65 percent of procurement. Today's spot 23 market is only 8 percent where just 15 years ago 24 it was 62 percent. We know the top four retailers 25 control 37 percent of the market, two times what it JOHNSON REPORTING SERVICES (515) 224-1166 6 1 was in 1992. 2 So the purpose of these workshops is 3 to explore, to determine whether or not the system 4 is fair. I would say that these are workshops that 5 have been long overdue. I know that there have 6 been many in this room who have expressed to me the 7 need for this kind of conversation and discussion. 8 Our hope is that they help us to inform and develop 9 better policy. 10 As you know, the Department of 11 Agriculture is responsible for the enforcement of 12 the Packers and Stockyards Act. We recently have 13 made improvements in poultry contracting. We're in 14 the process of completing work on defining undue 15 preferences and unfair practices pursuant to the 16 farm bill. We're adding additional enforcement 17 mechanisms within the Packers and Stockyards Act. 18 We're looking at new credit tools to 19 ensure that poultry and pork producers are treated 20 fairly. We've established a dairy advisory 21 committee to look at dairy pricing, and we're 22 preparing for the farm bill discussions of 2012. 23 All of those actions can be informed by what we 24 hear today and over the course of the next several 25 meetings. JOHNSON REPORTING SERVICES (515) 224-1166 7 1 I want to take this opportunity to 2 introduce to my friends from Iowa my friend from 3 Washington, D.C., the Attorney General of the 4 United States. I think it's fair to say that the 5 Attorney General is no stranger to Iowa, having 6 spent a good deal of time campaigning on behalf of 7 President Obama in this state. He is a key 8 confidant of the President's. He is and has been a 9 U.S. Attorney, a Superior Court Judge, a Deputy 10 Attorney General, and now the Attorney General of 11 the United States. 12 It's my honor and privilege to welcome 13 you, General, to my great state and to the people 14 who are obviously very interested in what we're 15 going to do here today. Ladies and gentlemen, the 16 Attorney General of the United States. 17 ATTORNEY GENERAL ERIC HOLDER: Thank 18 you very much, Secretary Vilsack. It's good to be 19 with you, and it's great to be back in this 20 beautiful state, your beautiful home state. 21 As the Secretary indicated, I had a 22 chance to spend quite a time -- quite a good deal 23 of time here during the President's campaign, and I 24 think that's when the people of this great state 25 taught me and proved to me and proved to our entire JOHNSON REPORTING SERVICES (515) 224-1166 8 1 nation that no matter how improbable the goal or 2 how difficult the task, there's simply no better 3 place to begin than right here in Iowa. 4 I have to tell you that when I was 5 here during the campaign, I was drawing crowds as 6 large as three. Things have changed a little bit. 7 But today I've returned for what I know will be 8 another learning opportunity, and I really want to 9 stress that, a learning opportunity. 10 As I stand here, as I sit here, I'm 11 reminded of President Eisenhower's observation -- I 12 think this is a great quote: "Farming looks mighty 13 easy when your plow is a pencil and you're a 14 thousand miles away from the cornfield." Dwight 15 Eisenhower, great words. Those words, I think, 16 remain true today. 17 And in the decades since he spoke 18 them, the challenges that face farmers and other 19 leaders across our agriculture industry have become 20 even more difficult.
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