Re: AG CONSOLIDATION TOWN MEETING

Greg & Lei Gunthorp (hey4hogs@kuntrynet.com)
Sat, 10 Apr 1999 23:59:55 -0500

Is the meeting going to serve any worthwhile purpose? I probably shouldn't
be asking that question as I am one of the farmers on the panel. Anybody
have any concerns they would like shared? I think I am going to try to
contain my thoughts to price discrimination to small producers because of
these unfounded assumptions that bigger is better and then I am going to
tell them that our own governments policies have created this fiasco. The
regulatory hoops that farmers have to jump through to be a contrary force
to this consolidation and monopolistic tendencies are only there to hinder
competition--not for food safety as they would like everyone to believe.
It is time to change both fronts. Dairy farms around here that milk over
330 average producing cows get about a $3/cwt premium. I don't understand
how it is happening even in the co-op system. That is a whopping
percentage difference in milk prices. Can it really be $3/cwt cheaper to
purchase milk from large(, no huge,) dairies? Alleged % differences in
prices on hogs and cattle from small producers to large are very similar in
percentages. Without mandatory price reporting we don't even really know.
I know GIPSA's stance has always been it is an acceptable business practice
in the US to pay large businesses more. Then what is the use of having
Section 202 of the Packer and Stockyard's act?

Please pass along any suggestions. Look forward to seeing some of you
there.
Best wishes,
Greg
Gunthorp's Pasture-ized Pork
LaGrange, Indiana
visit our farm at www.grassfarmer.com

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> From: Brian DeVore <Brian.A.Devore-1@tc.umn.edu>
> To: sanet-mg@shasta.ces.ncsu.edu
> Subject: AG CONSOLIDATION TOWN MEETING
> Date: Friday, April 09, 1999 2:56 PM
>
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> CONTACT: Mark Schultz, 612-823-5221; schul072@gold.tc.umn.edu
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> APRIL 18 TOWN MEETING TO DISCUSS CONCENTRATION IN AGRICULTURE
>
>
>
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> 4/9/99
>
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> SOUTH SAINT PAUL, Minn. Ñ Consolidation in agriculture is occurring at
levels
> never seen before in our history, say agricultural economists and rural
> sociologists. The increasing power of multinational corporations to
control
> farmersÕ prices and market access means independent Midwestern producers
are
> being treated unfairly.
>
>
> This is being done through price manipulation and price discrimination,
said
> Mark Schultz, Policy Program Director for the Land Stewardship Project.
>
>
> ÒFarmers are being deliberately short-changed, literally,Ó he said. ÒThe
fact
> is, there are federal laws on the books to address the corporationsÕ
> competition-killing practices. However, the federal government has failed
to
> enforce the law. We need to change that situation.Ó
>
>
> On Sunday, April 18, farmers from throughout the Upper Midwest will have
an
> opportunity to pressure federal officials into enforcing antitrust laws
and
> holding the Cargills, Smithfields and ConAgras of the world accountable.
>
>
> The ÒTown Meeting on Concentration and Monopoly in AgricultureÓ will
begin at 1
> p.m. at the Best Western DroverÕs Inn, 701 South Concord Street, South
Saint
> Paul, Minn. (next to the Saint Paul Stockyards). For more information,
call the
> Land Stewardship Project, 651-653-0618. The DroverÕs InnÕs number is
> 651-455-3600.
>
>
> The meeting will feature Joel Klein, Assistant U.S. Attorney General,
Antitrust
> Division, and Michael Dunn, Assistant Secretary, USDA Marketing and
Regulatory
> Programs, Packers & Stockyards Programs.
>
>
> State lawmakers from five states, working with U.S. Senator Paul
Wellstone of
> Minnesota, provided the impetus for the meeting. The state legislators
involved
> in this special meeting include: Ted Winter (Minn.), Jack Kibbie (Iowa),
Frank
> Klocek (S. Dak.), Cap Dierks (Neb.) and Bruce Larkin (Kan.). Also
planning to
> participate are U.S. Senators Kent Conrad (N. Dak.), Tom Daschle (S.
Dak.),
> Byron Dorgan (N. Dak.), Charles Grassley (Iowa), Tom Harkin (Iowa) and
Tim
> Johnson (S. Dak.)
>
>
> Farmers will have an opportunity to discuss such issues as:
>
>
> ¥ The need for antitrust action in agriculture, with the Cargill
acquisition of
> Continental Grain serving as a case in point.
> ¥ The need for mandatory price reporting and restriction of the packersÕ
> ownership and control of marketed livestock.
> ¥ Excessive corporate profits during the long period of terribly low farm
prices
> for a wide range of commodities, including corn, soybeans, hogs, cattle,
wheat
> and others.
>
>
>
> ÒThis is an excellent opportunity for farmers to make their voices
heard,Ó said
> Schultz. ÒWeÕve got to make sure these public servants get the message
that they
> had better start doing their job.Ó
>
>
> ###
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