[Congressional Record Volume 145, Number 148 (Wednesday, October 27, 1999)]
[Extensions of Remarks]
[Page E2203]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         INTRODUCTION OF THE AGRIBUSINESS MERGER MORATORIUM ACT

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                           HON. EARL POMEROY

                            of north dakota

                    in the house of representatives

                      Wednesday, October 27, 1999

  Mr. POMEROY. Mr. Speaker, I rise today to introduce the Agribusiness 
Merger Moratorium Act of 1999. I am honored to have Judiciary Committee 
Member Tammy Baldwin and my colleague on the Agriculture Committee, 
David Minge, join me as original cosponsors of this important 
legislation. Our legislation is very similar to the Senate legislation 
that was introduced recently by Senators Wellstone, Dorgan, Harkin, and 
Daschle.
  Unfortunately, the agriculture sector of our economy has experienced 
rapid consolidation, disrupting the competitive dynamic of the market 
place. Today, concentration is more prevalent than ever in agriculture 
as we have observed with the recent acquisitions of Continental Grain 
by Cargill and the Smithfield Foods merger with Murphy Family Farms. 
For example, if the proposed acquisition of Continental Grain by 
Cargill is allowed with the divestitures set forth in the proposed 
consent decree, Cargill will handle more than 25 percent of the all of 
the Nation's export markets.
  To illustrate the degree of concentration in agriculture processing, 
in 1999, 80 percent of beef cattle are slaughtered by only four meat 
packers, 75 percent of sheep are processed by only four firms, and 60 
percent of hogs are slaughtered by only four firms. At the same time 
concentration has been drastically increasing, a farmer's share of 
every food dollar spent decreased from 37 cents to 23 cents from 1980 
to 1998.
  The Agribusiness Merger Moratorium Act of 1999 is a short-term 
legislative response to the rapid consolidation that I have described. 
This legislation would establish an 18-month moratorium on mergers and 
acquisitions by large agribusinesses. It would create a commission to 
determine whether concentration in the agriculture industry has reached 
a point where market competition can no longer be counted on to get 
family farmers and ranchers a fair price for the products they produce.
  The moratorium would apply to any proposed merger and acquisition 
that involves at least one firm with annual net revenues or assets of 
more than $100 million and another firm with assets of at least $10 
million. Agricultural cooperatives would be exempted from this 
legislation.
  Clearly, this legislation is only a short-term response. The long-
term solution is enforcement and strengthening of our antitrust laws. 
But, with the current dire economic conditions farmers and ranchers 
across the United States are facing, we, as Federal lawmakers, must 
provide immediate action.
  Mr. Speaker, as we enter the new millennium, it is ironic that 
Congress faces the same challenges our colleagues faced 100 years ago. 
To paraphrase one of North Dakota's favorite adopted sons, our Nation's 
26th President Teddy Roosevelt, ``We must carry a big stick to return 
fairness and freedom to the marketplace.'' The Agribusiness Merger 
Moratorium Act of 1999 is a step in that direction.

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