Farmers’ share of each dollar spent on food has declined while consumers pay more, the White House says. Conglomerates in the middle take the rest.
President Joe Biden on Friday directed his administration to investigate agricultural consolidation, saying it’s resulted in farmers paying too much for seed, tractors and fertilizer — and in consumers paying too much in grocery stores. Concentrated ownership in agricultural markets means “farmers’ and ranchers’ share of each dollar spent on food has been declining for decades,” while at the same time “consumers are paying more, and the big conglomerates in the middle are taking the difference,” the White House said in a fact sheet about a new executive order Friday. “Big ag is putting a squeeze on farmers. Small and family farms, first-time farmers — like veterans coming home and Black and Latino and Indigenous farmers — they’re seeing price hikes for seed, lopsided contracts, shrinking profits, and growing debt,” Biden, a Democrat, said as he signed the order. Biden directed U.S. Agriculture Secretary Tom Vilsack to investigate and to pursue rules that address “unfair, unjustly discriminatory or deceptive practices” within the agriculture industry. Lack of competition among the small number of companies that dominate the meatpacking industry has been a particularly vexing issue for livestock farmers. Vilsack, visiting farms and a butcher shop in Council Bluffs on Friday, said his department will hold meatpackers accountable by revitalizing the 1921 Packers and Stockyards Act — a law designed to combat anticompetitive behavior — and issue new rules to more stringently regulate “Product of USA” labeling that doesn’t adequately limit the use of the designation on potentially foreign-produced foods. The administration also took aim at corporate restrictions that prevent consumers — whether they are farmers or tech users — from repairing their own equipment. Vilsack, traveling with U.S. Rep. Cindy Axne, an Iowa Democrat, said the Agriculture Department will make $500 million available to help expand the nation’s meat-processing capacity across the country, creating greater competition for U.S. cattle, hogs and poultry. Vilsack, a former Iowa governor, said the nation can no longer “rely on a handful of processing companies to do the job, to make the market competitive and to do right by farmers.” Livestock producers face limited options when selling their products. Four large meat-packing companies — Cargill Inc.
