NFU Calls for ‘Competition' Title in Farm Bill

September 17

The National Farmers Union has called for a "competition" title in the new farm law. In a letter to members of the Senate Agriculture Committee said such a title would "help preserve family agriculture production in America. The inclusion of a competition title in the next farm bill would be a significant stride toward restoring a healthy, competitive marketplace for producers."

Of the nine titles included in the 1996 farm law, none specifically addressed competition. NFU is requesting a section in the 2002 farm bill to encompass "fairness, transparency, access, protection and bargaining rights for contract producers and enhanced competition for agricultural markets.

Increasing levels of concentration in agricultural markets have diminished the competitive ability of independent producers, evidenced by the sharp decline in the number of family farms in the past decade, NFU said.

In the meat processing industry alone, the top four processing firms for beef, pork and chicken control from 55-87% of the U.S. market in their respective commodities. According to NFU, this trend restricts local competition and limits producers' marketing options.

"Consumers also face harm by increasing vertical and horizontal integration in the food and agriculture system," said NFU President Leland Swenson. "Consolidation reduces consumer choices and poses the risk of higher prices."

More than 60 organizations, including NFU, sent a joint letter to the House Agriculture Committee in May requesting a competition title in its version of the farm bill; however, no House action has been taken.