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Fairness For Farmers

Posted by Nate On August - 12 - 2010

I just took action by submitting a letter of concern to the USDA regarding their current consideration of implementing some long-overdue rules that would make markets fairer for poultry and livestock farmers.  Big agribusiness is trying to fight back of course, preventing the new rules from ever passing.  If you’d like to help out the cause, head to the Food & Water Watch website.

Here is a copy of the letter I wrote.  I used the form letter but personalized the first part:

Dear Secretary Vilsack,

Let me begin by expressing my deep disgust and distrust with the mass-market meat system currently in place.  I have taken my consumer dollars out of the meat department at my local grocery stores and instead invested in a share of a local, Community Supported Agriculture operation.  For my investment in the farmer just down the road, which averages $5 per pound, I am guaranteed about 20lbs. of farm fresh, organically raised meat products each month.  It’s the best investment I ever could have made and don’t intend to buy meat from the local grocers case again any time soon.

I am writing to express my support for the proposed rule on “Implementation of Regulations Required Under Title XI of the Food, Conservation and Energy Act of 2008; Conduct in Violation of the Act” (“Farm Bill Comments, FR page 35338, June 22, 2010). This new proposed rule is an important first step in leveling the playing field for livestock producers, improving market transparency and protecting poultry growers from unfair contract terms.

The proposed rule would eliminate the most abusive contract terms and practices used by poultry companies, ban retaliation against growers who speak out about unfair conditions or contract abuses; protect growers who make expensive upgrades to their chicken houses; require notification before companies suspend contracts with growers; and allow growers to opt out of arbitration clauses.

Unfortunately, the proposed rule fails to rein in similarly unfair practices in livestock markets. The proposed rule addresses a few specific unfair practices widely used by meatpackers, but it fails to establish guidelines that would prevent meatpackers from unfairly favoring one hog or cattle farmer over another through marketing agreements and contracts. It does prevent one limited kind of price discrimination (the full trailer volume discount), bans packer-to-packer sales, prohibits one auction buyer from representing multiple meatpackers and offers only limited improvements on marketing transparency. These are important and necessary improvements, but do not address most of the widespread unfair treatment in the cattle and hog industry. In addition to implementing this proposed rule as soon as possible, I urge you to take the next steps necessary to address the market power of large meatpackers and require packers to pay a firm bid price for all livestock they procure and require them to sell in an open public market where all buyers and sellers have access.

Sincerely,

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