Grassley Comments on Agriculture Competition Proposed Rules

Press Release

Senator Chuck Grassley made the following statement after the U.S. Department of Agriculture released proposed rules to increase competitiveness in the livestock and poultry industry. Grassley fought to ensure competition was addressed in the 2008 farm bill, which required the proposed rules. This includes rules for specific legislation that Grassley pushed which required any arbitration provision in a contract be voluntarily agreed upon by both parties to settle disputes at the time a dispute arises, not when the contract is signed.

Grassley has led the congressional effort to address unfair practices, monopsony and vertical integration in agriculture. He is the author of comprehensive legislation that would help ensure a level playing field for all market participants in the agriculture industry, including the independent producer and family farmer.

"The Department of Agriculture has made a concerted effort to address some of the unprecedented levels of concentration in the agriculture industry. There's still more work to be done, but these proposed rules are a step in the right direction. Producers of all sizes will benefit by having more bargaining power and additional rights to negotiate. It gives producers an opportunity to have some control over a process that has all-too-often skewed against family farmers and independent producers.

"It's also important that the proposed rules for arbitration will be available. I've fought for several years to allow farmers the opportunity to choose the best form of dispute resolution so they didn't have to submit to packers. This will help level the playing field for independent producers."

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