The Department of Justice has continued the public side of its investigation into possible antitrust violations in the agriculture business. In early March, the DOJ went to Iowa, where the agency's lawyers heard about seed monopolies and contract hog raising. This week, Christine A. Varney, the Assistant U.S. Attorney General in charge of the Antitrust Division (above) listened to dairy farmers in New York State as they described the lack of competition in milk markets, according to a story in the Buffalo News written by Phil Fairbanks.
"We want and need to be able to control our family farm's destiny," Jeremy Verratti, a dairy farmer in Gasport, said during a meeting at Genesee Community College. "We want to stay dairy farmers and we want to stay in Gasport." New York Sen. Charles Schumer noted that farmers "are getting paid less and consumers are paying more...Someone is walking away with all the money."
Varney and DOJ attorneys plan to visit other milk producing states, such as Vermont and Wisconsin. They will hear other farmers who contend that a lack of competition for milk is driving prices down. At one point, Varney acknowledged the crisis in dairy country, according to Fairbanks. "We will not let you down," she said. "We know the problem you're facing."
There are an increasing number of states where the Humane Society is coming into conflict with agriculture groups. This fight between ag and animal rights was a big topic of state legislative leaders earlier this year. Now the Kansas City Star's Matt Campbell has a good roundup of the fights that are brewing. "This is getting ugly," Campbell writes.
In Kansas, Campbell writes, "the president of the state Farm Bureau is firing off complaints to corporations that show signs of empathy with the society." In Missouri, there will be a vote this November on a proposed law that would regulate dog breeders. (The primary opponent is the head of the state pork association.) Nationally, agribusiness groups have started a new, anti-Humane Society website HumaneWatch.org.
The Humane Society says it is trying to reduce the instances of livestock abuse. “Ultimately, the Humane Society wants to make it more difficult to produce livestock on the scale that this country requires to meet demand,” Don Lipton, a spokesman for the American Farm Bureau Federation told Campbell.
How we got to this point is a complicated — and sometimes tragic — story. However, understanding where we’ve been is critical to understanding where we can go.
Bloomberg is reporting that farmers around the world are increasing their cotton crops by the largest amount in six years in response to rising cotton prices. The price of cotton has gained 92 percent in the last six months, making "cotton the most expensive relative to corn and soybeans since 2006," Bloomberg reports. Cotton prices are about 12 times more than corn and 5 times more than soybeans.
“We are going to make a monster crop,” said Sharon Johnson, a senior cotton analyst at First Capitol Group LLC in Atlanta. The large crop will likely push cotton futures down as much as 21 percent by the end of the year, according to Johnson. Still, the prices are so good for cotton now that U.S. farmers are likely to increase their crops by 29 percent.
A drought has reduced cotton crops the past few years, but soil moisture is up in Texas and production should increase. In the past few years farmers have favored corn and soy beans over cotton.
It used to be that farm communities in Missouri and Iowa were vibrant. That was back when farmers received a fair price for their products. The lack of a true market for farm goods is strangling rural America, according to Missouri hog farmer Jim Foster.
The Department of Justice is collecting comments on "agriculture and antitrust enforcement issues in our 21st century economy." The DOJ is trying to decide if companies are violating the nation's monopoly rules and has asked any and everybody for their thoughts. The DOJ receives comments and posts them here.
It can make for interesting reading. For instance, there are seven state attorneys general investigating whether Monsanto's stranglehold on genetically modified seeds violates antitrust laws. Not so Kentucky AG Jack Conway, a Democrat who is now running for the U.S. Senate. Conway has written a letter to the DOJ that asks the government to further protect the intellectual property of firms like Monsanto. "(T)hese companies can produce these types of results only if they know their intellectual property rights are assured," Conway wrote. We assume this means Conway won't be joining any anti-Monsanto suits.
Bryan Wolfe, a dairy farmer in Rome, Ohio, tells how the markets for his milk have been reduced since 1992, leaving him with only one buyer for his product. The National Chicken Council tells us that the contracts signed by farmers in the chicken-raising business have been good for growers. Jon McConaughy, a beef producer, laments the lack of a local slaughter house. And Monsanto has submitted a 89-page brief.
"Cradle to grave" antibiotics for animals can't take the place of good genetics or healthy food, and overmedication may endanger human health in the long run, too.
The case of the disappearing bees is endlessly fascination, and the Washington Post has an update on colony collapse disorder (CDD), the malady affecting the nation's hives. Post reporter Adrian Higgins tells us that the losses have continued. Research has found that bee loss has stabalized at around 30%, but that figure was based on last winter's data. Reports from some beekeepers peg the losses this winter at 50% or more.
"I am very concerned about this year based on what we have seen in California and other parts" of the United States, said Jeffery S. Pettis, research leader for the Agricultural Research Service's honey bee laboratory. There is no single cause of CDD, or at least none that researchers have found. "With the condition, foraging worker bees don't return to a hive even if a full brood is waiting to hatch," Higgins wrote. "One theory is that the foragers, knowing they are sick, fly off to die rather than compromise the hive."
The cause could be pesticides or the strain of travel. (Bees are trucked from one end of the country to another where they are put to work pollinating crops.) Bee keepers used to make their money on honey. Now, however, they make most of their income on pollination fees.
"U.S. Department of Justice officials brought their antitrust sword Friday to a workshop on competition in agriculture, but for the time being are keeping the weapon in its scabbard," wrote the dependable Dan Piller in the Des Moines Register. Piller reported from the first of several "workshops" being held by the federal Department of Justice on the agriculture business sector. There is increasing concentration of business in many parts of agriculture, some of which may violate federal antitrust laws. "Big is not necessarily bad," Attorney General Eric Holder said. "We're here to listen and learn. We want to be business-friendly."
Piller reported that about 800 people attended the hearing. At the center of the discussion was Monsanto, the company that controls the corn and soy bean seed market. Piller gives a good rundown of what happened and who said what. Secretary of Agriculture Tom Vilsack said, "The number of farmers has decreased, and rural America is seeing a rise in poverty. Rural America has been in recession much longer than the rest of the country."
Lynda Waddington of the Iowa Independent concentrated her story on Vilsack's remarks. She followed a discussion about crop subsidies and renewable fuels. Find her story here. Waddington also reported from a meeting the day before, held to protest "big ag." (Photo above.) The Wall Street Journal story is here. The North Platte Bulletin lists more antitrust workshops in Alabama, Wisconsin, Colorado and Washington, DC.