A bipartisan group of U.S. senators on April 8 introduced legislation to establish a special investigator at USDA to look into competition issues surrounding meatpackers.
The Meat and Poultry Special Investigator Act would create and empower a team of investigators at USDA to prevent anticompetitive practices in the meat and poultry industry by enforcing existing antitrust laws, in coordination with the Department of Justice and the Federal Trade Commission. The investigator’s office would specifically focus on the meatpacking industry by restricting its work to investigating entities that fall under the Packers and Stockyards (P&S) Act of 1921.
USDA used to have the Grain Inspectors, Packers and Stockyards Administration (GIPSA) that focused on Packers and Stockyards Act violations, but the agency was split up during the first Trump administration with the P&S inspectors rolled into the Agricultural Marketing Service.
Senators said such an investigator’s office would “hold meat and poultry companies accountable for anticompetitive behavior and to lower skyrocketing grocery bills.”
“For too long, Oregon ranchers and consumers have been greedily exploited by the Big Four meatpackers that sneak their way around regulations,” said Sen. Ron Wyden (D-OR), ranking member of the Senate Finance Committee.
Julie Anna Potts, president and CEO of the Meat Institute, said the legislation is not necessary. She noted the tight cattle supply driving markets right now.
“This legislation remains unnecessary. As of Jan. 1, the cattle herd in the U.S. is its smallest since 1951. Because of the laws of supply and demand, beef producers continue to earn sustained high and even record high prices for their cattle,” Potts said.
She added, “If these senators wish to reduce the price of beef, the Meat Institute can point to burdensome and costly regulations enacted by the Biden administration that can be rolled back, labor challenges that can improve production, export markets that can be opened and tax relief that can be extended.”
The bill is similar to one introduced in 2021 by Sen. Chuck Grassley (R-IA) and former Sen. Jon Tester (D-MT) after livestock markets became out of whack during the pandemic.
“For decades, America’s Big Four meatpackers’ anticompetitive practices have made it harder for Iowa cattle producers to receive a fair price,” Grassley said. “Our bill empowers USDA, in coordination with the Justice Department and Federal Trade Commission, to crack down on bad actors, ensuring a fair and functional marketplace that supports everyone who produces and enjoys quality American meat.”
Senators signing onto the bill along with Wyden and Grassley include Republicans Mike Rounds of South Dakota, Cindy Hyde Smith of Mississippi and John Hoeven of North Dakota. Other Democrats on the bill include Sens. Richard Blumenthal of Connecticut, Martin Heinrich of New Mexico, Adam Schiff of California and Peter Welch of Vermont.
The bill is backed by the U.S. Cattlemen’s Association (USCA) and National Farmers Union (NFU).
“If the bad actors in the marketplace have nothing to hide, then they should have no problem with reinforcing USDA’s oversight authority through the measures provided in this bill. It’s not enough that producers stand on a level playing field in the marketplace—there also needs to be a referee, with a whistle, there to throw a flag when there’s a penalty,” said Justin Tupper, president of USCA.
Rob Larew, president of NFU, added, “A special investigator at USDA is an important step to cracking down on unfair practices and leveling the playing field for independent livestock producers. Senators Wyden, Rounds, and Grassley get it—strong enforcement keeps monopolies in check. When family farmers and ranchers thrive, so do our rural communities.” — Chris Clayton, DTN ag policy editor
