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.
An Amish farmer, Emanuel Miller Jr., in Wisconsin has won a court case against the state's animal registration law. The 2005 state law requiring livestock owners to register the location, number and type of animals owned (a law that was a precursor to the larger animal tagging scheme promoted by the U.S. Department of Agriculture). "Some Amish and others say such a numbering system would amount to the 'mark of the beast,' which is referenced in the Book of Revelation as being related to Satan," wrote Milwaukee Journal Sentinel reporter Bruce Vielmetti. "Clark County Circuit Judge Jon Counsell ruled that the state failed to show how mandatory registration furthers animal health and food safety any more effectively than alternatives that would not affect Miller's religious freedom."
Miller argued that animal registration would put the government before God and bring him into the modern wordk. Miller said he would be shunned by his church. The state is expected to appeal the ruling.
Also, this morning the New York Times reported on the front of its business section that rising prices for seed have resulted in an antitrust investigation of that business and, especially, Monsanto. The story precedes a hearing Friday in Ankeny, Iowa, on concentration in various agriculture sectors.
The country's last horse slaughter house was closed in 2007 after a federal regulation essentially banned interstate shipment of slaughter horses. This was a good thing if you feel that no horses should be slaughtered for food. This is a bad thing if you believe the lack of horse slaughter houses has resulted in an epidemic of abused horses. Since 2007, slaughter horses have been sent to Canada and Mexico, but now a Missouri legislator has introduced legislation that he thinks may help to reopen a horse slaughterhouse in his state, according to the St. Louis Post-Dispatch.
The feds stopped horse slaughter by refusing to pay for inspection of the plants. Rep. Jim Viebrock (Republican from Republic) has a bill that would provide funding to pay for federal inspections. The feds don't think the law will work, and that interstate transport of horses for slaughter will still be banned. Viebrock and his supporters — which includes the state director of agriculture — think it's worth a shot.
Meanwhile, the cases of horse neglect appear to be rising, at least according to horse owners. "A report by the Unwanted Horse Coalition revealed that, of the 27,000 horse owners and industry stakeholders surveyed, 90 percent believe that the number of unwanted horses is rising," according to the paper. "If you look at what's been happening since these facilities have closed, it's really telling," said Mark Lutschaunig, of the American Veterinary Medical Association. The Humane Society disagrees, saying no one knows if there's been an increase in abused horses.
Bloomberg reports that at "least seven U.S. state attorneys general are investigating whether Monsanto Co., the world’s largest seed producer, has abused its market power to lock out competitors and raise prices." The seven states are Iowa, Illinois, Ohio, Texas, Virginia and two other states that Bloomberg's Alison Fitzgerald could not yet identify. The AGs in the seven states have created a working group to coordinate the inquiry. The five named states account for 39% of the corn and soybeans 9above) produced last year.
Bloomberg's story comes two days before the U.S. Justice Department will hold a "workshop" in Ankeny, Iowa, on concentration in the ag business sector. The primary target of all this activity is likely to be Monsanto, the seed producer. Monsanto's Roundup Ready genetically engineered seed line was in 93 percent of the soybeans and 82 percent of the corn grown in the U.S. last year, according to Fitzgerald.
“Monsanto has become such a dominant player in the seed business that producers have real concerns that the price they pay for seed is going to be anywhere near reasonable,” said John Crabtree, a spokesman for the Center for Rural Affairs in Lyons, Nebraska, a nonprofit group that provides services to farm communities. “The fear is that the sky’s the limit.” The state AGs are investigating whether Monsanto offered financial incentives to dealers or farmers to exclude competing products. A Monsanto spokesman said these were "unsubstantiated allegations."
Farmer Richard Oswald has had a belly full of big ag's messages about yields, food safety, and transportation. How about a taste of tabloid journalism?
The Department of Justice and the U.S. Department of Agriculture have relented and will actually hear from farmers at a workshop being held on possible antitrust violations in businesses associated with agriculture. The workshop will be held in Ankeny, Iowa, on March 12. Originally, only one farmer was to be heard from Sen. Tom Harkin of Iowa complained. And now a panel of five to six farmers will have 45 minutes to explain how business concentration in the hog, cattle, soy bean, corn and cotton markets is affecting their livelihoods. One of the farmers will be Jim Foster, a Montgomery City, Missouri, hog producer, above.
Okay, it is true that a panel of politicians speaking first will have twice that long to tell the DOJ and the USDA their thoughts about monopoly in seed production, food sales and meat processing. Farmers are squeezed into an itsy-bitsy time slot before lunch. This workshop is being held as the DOJ decides whether to file antitrust cases against large companies in the ag business. The most likely target is Monsanto, which produces most of the seeds farmers use to raise corn and beans.
Also, those who plan on attending the workshop on March 12 might want to register. To do that, go here.