[Congressional Record Volume 146, Number 75 (Thursday, June 15, 2000)]
[Senate]
[Pages S5271-S5272]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ASHCROFT:
  S. 2744. A bill to ensure fair play for family farms; to the 
Committee on the Judiciary.


               the fair play for family farms act of 2000

  S. 2745. A bill to provide for grants to assist value-added 
agricultural businesses; to the Committee on Agriculture, Nutrition, 
and Forestry.


        the value-added development act for american agriculture

  S. 2746. A bill to amend the Internal Revenue Code of 1986 to allow a 
credit against income tax for investment by farmers in value-added 
agricultural property; to the Committee on Finance.


    the farmers' value-added agricultural investment tax credit act

  Mr. ASHCROFT. Mr. President, I rise today to discuss the concerns of 
Missouri farmers and ranchers about concentration in the agriculture 
sector and about individual farmers' ability to compete and to get fair 
prices for their commodities.
  Missouri is a ``farm state'', so ensuring fair competition in markets 
is an important issue to me. The state of Missouri is ranked second in 
the list of states with the most number of farms--only Texas has more. 
Missouri's varying topography and climate makes for a very 
agriculturally diverse state. Farmers and ranchers produce over 40 
commodities, 22 of which are ranked in the top ten among the states. 
Missouri is a leader in such crops as beef, soybeans, hay, and rice, as 
well as watermelon and concord grapes. Having diversity and the ability 
to change has allowed Missouri farmers to maintain their livelihood for 
generations. More than 88 percent of the farms in Missouri are family 
or individually owned, and 8 percent are partnerships. It is easy to 
see that Missouri is a state that values small and family farms--which 
are the bedrock of Missouri's rural communities.
  As I have traveled around Missouri--visiting every county in the 
state--Missouri farmers and ranchers have repeatedly told me that 
increasing concentration of the processing and packing industry has 
resulted--and will continue to result--in a less competitive market 
environment and lower prices for producers.
  I have been responding to these concerns, and I am taking further 
action today. Last year, I asked the Department of Justice to create a 
high-level post within the Antitrust Division to specialize in 
agriculture-related mergers and transactions. The Administration 
responded by appointing a representative for agriculture in the 
Department of Justice. This appointment is a step in the right 
direction, but producers still have multiple concerns that need to be 
addressed.
  Today, I am introducing three bills to address Missouri and American 
farmers' concerns about agriculture concentration and market 
competition. In addition to listening to Missouri farmers on this 
issue, I have reviewed a resolution that was considered in the Missouri 
State Legislature about competition in the agricultural economy.
  The Ninetieth General Assembly of Missouri called upon the 106th 
Congress to take an initiative on federal

[[Page S5272]]

law governing agriculture concentration. Missouri State Concurrent 
Resolution 27 (S. Con. Res. 27) is a bipartisan resolution outlining 
what the Missouri legislature recommends the federal government should 
do to address the issue of concentration. The resolution passed the 
Missouri State Senate and was reported out of the House Agriculture 
Committee to the full House. In drafting the package of bills I am 
introducing today, I studied the recommendations and objectives in 
State Senator Maxwell's Missouri resolution as well as including 
important provisions of my own.
  Mr. President, the bill I'm introducing today--the Fair Play of 
Family Farms Act--does the following things:
  First, this legislation adds ``sunshine'' to the merger process. It 
will give the Department of Agriculture more authority when it comes to 
mergers and acquisitions. This will heighten USDA's role in review of 
all proposed agriculture mergers so that the impact on farmers will be 
given more consideration, and will make these reviews public. The 
public will be given an opportunity to comment on the proposed merger, 
and the USDA will be required to do an impact analysis on producers on 
a regional basis. I want to ensure that if two agri-businesses merge, 
the impact on farmers are completely evaluated.

  Second, my bill creates a permanent position for an Assistant 
Attorney General for Agricultural Competition. This position will not 
simply be appointed by the President or by the Attorney General, but 
the position will require Senate review and confirmation. Also, my bill 
provides additional staffing for this new position.
  In addition, this bill provides additional funds and requires the 
Grain Inspection, Packers and Stockyard Administration (GIPSA) to hire 
more litigation attorneys, economists, and investigators to enforce the 
Packers and Stockyard Act. An important element of this provision is 
that it requires GIPSA to put more investigators out ``in the field'' 
for oversight and investigations. I want to make sure that there are 
not just more attorneys and economists in Washington, D.C., but that 
there are more people out doing investigations and oversight.
  Because there has been some concerns that the Packers and Stockyards 
Act does not cover the entire poultry industry, this legislation also 
requires an analysis of why the poultry industry is not covered, and 
requires GAO to offer suggestions for how the disparity between poultry 
and livestock can be remedied.
  This bill addresses another problem I was informed about when I was 
out visiting Missouri farmers--and that is the issue of confidentiality 
clauses in contracts signed by farmers. Several farmers were concerned 
about confidentiality clauses in the contracts with agri-business that 
they were told make it illegal for farmers to share the contract with 
others, even their lawyers and bankers. I want to ensure that farmers 
are able to get the legal and financial advice they need, so this bill 
ensures that such confidentiality clauses do not apply to farmers' 
contacts with their lawyers or bankers.
  The bill also creates a statutory trust for the protection of 
ranchers who sell on a cash basis to livestock dealers. Right now, if 
ranchers deliver their cattle to a dealer and then the dealer goes 
bankrupt, the rancher is not protected. My bill would set up a trust 
for the rancher, so that if the dealer goes bankrupt, the rancher would 
be at the front of the line to get paid. There are similar trusts 
already set up for when a rancher sells livestock to a packer, and this 
legislation extends the same protections to ranchers when they sell 
their livestock to dealers.
  One of the recommendations from the Missouri legislature that I 
included in the bill allows GIPSA to seek reparations for producers 
when a packer is found to be engaged in predatory or unfair practices. 
This section specifies that when money is collected from those that are 
damaging producers, the money should go to the farmers, not to the 
federal government.
  This bill will lead to a more fair playing field for Missouri farmers 
and ranchers. It address concerns of Missourians that I have visited 
with and incorporates the outline of the Missouri State Resolution.
  Finally, I am pleased to be the Senate sponsor of two bills that have 
already been introduced in the other Chamber by the distinguished 
Representative from Missouri, Congressman Jim Talent. I would like to 
commend Congressman Talent for the work he has done to help the 
Missouri agriculture community. Representative Talent's bills on value 
added agriculture are a positive step for Missouri and U.S. producers. 
Therefore, I would like to introduce these two bills in the Senate to 
``help put farmers back in the driver's seat.''
  The Value-Added Development Act for American Agriculture provides 
technical assistance for producers to start value-added ventures. This 
bill helps family farmers compete by giving farmers the opportunity to 
take a greater share of the profit from the processing industry. The 
legislation will provide technical assistance to producers for value-
added ventures, including engineering, legal services, applied 
research, scale production, business planning, marketing, and market 
development.
  The funds would be provided to farmers through grants requests, which 
will be evaluated on the State level. It has long been my opinion that 
farmers know how best to farm their land, meet market demands, and make 
a profit. If the ideas of farmers are cultivated on a local and state 
level, farmers will likely have more flexibility to make wise decisions 
for markets in their home states and regions.
  States would have the opportunity to apply for $10 million grants to 
start up an Agriculture Innovation Center. The state boards will 
consist of the State Department of Agriculture, the largest two general 
farm organizations, and the four highest grossing commodity groups. The 
Agriculture Innovation Center will then use the funds to help farmers 
finance the start-up of value added ventures.
  Once it is determined that the farmers' ideas for a value added 
venture could be beneficial, the State Agriculture Innovation Center 
can give the farmers assistance with plans, engineering, and design. 
When the farmer is actually ready to begin implementation of the value 
added project, the third bill I am introducing will help out.
  The Farmers' Value-Added Agricultural Investment Tax Credit Act would 
create a tax credit for farmers who invest in producer owned value-
added endeavors--even ventures that are not farmer-owned co-ops. This 
would provide a 50% tax credit for the producers of up to $30,000 per 
year, for six years.
  The three bills I am introducing today are important to the 
continuation of the American farmer over the next century. I know that 
these bills will benefit the producers of Missouri, and in turn benefit 
all of America.

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