[Congressional Record Volume 158, Number 32 (Wednesday, February 29, 2012)]
[Senate]
[Page S1148]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY (for himself, Mr. Conrad, Mr. Johnson of South 
        Dakota, and Mr. Harkin):
  S. 2141. A bill to amend the Packers and Stockyards Act, 1921, to 
make it unlawful for a packer to own, feed, or control livestock 
intended for slaughter; to the Committee on Agriculture, Nutrition, and 
Forestry.
  Mr. GRASSLEY. Mr. President, today I am introducing legislation 
designed to help family farmers across this nation have a more level 
playing field when it comes to livestock markets. The bill would 
prohibit meat packers from owning livestock. The ownership of livestock 
by packers compromises the marketplace and hinders the ability of the 
farmer to receive a fair price. It is simple, as one meat-packing 
executive once told me, packers own livestock so that when prices are 
high, they slaughter their own livestock. When prices are low, they buy 
from farmers.
  I would love to say opportunities for independent producers have 
gotten better since the last time we debated this bill during the 2008 
Farm Bill. But that simply isn't the case. We are to the point where 
most farmers have to deliver their livestock to one of a few very large 
packers. Farmers' bargaining power is diminished by the sheer size and 
economic position of the packers. But beyond that, farmers have to 
compete with the livestock owned by the packing plant itself. The 
packer ban would make sure the forces of the marketplace work for the 
benefit of the farmer as much as it does for the slaughterhouse.
  I am sure there will be folks in the packing industry that point out 
that farmers are doing okay right now, and that's great that farmers 
are experiencing a good period. I am pleased anytime the hard work of 
livestock farmers results in a good price. But I don't want my 
colleagues here in the Senate to be lulled to sleep and think just 
because prices are good right now means we don't have competition 
issues in the livestock industry that need to be addressed. This is 
about ensuring farmers are able to get fair prices for years to come. 
We need to work today, and implement this reform, to ensure the next 
generation of independent farmers has an opportunity to raise livestock 
and receive fair prices as a result of their hard work.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2141

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. PROHIBITION ON PACKERS OWNING, FEEDING, OR 
                   CONTROLLING LIVESTOCK.

       (a) In General.--Section 202 of the Packers and Stockyards 
     Act, 1921 (7 U.S.C. 192), is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following:
       ``(f) Own or feed livestock directly, through a subsidiary, 
     or through an arrangement that gives the packer operational, 
     managerial, or supervisory control over the livestock, or 
     over the farming operation that produces the livestock, to 
     such an extent that the producer is no longer materially 
     participating in the management of the operation with respect 
     to the production of the livestock, except that this 
     subsection shall not apply to--
       ``(1) an arrangement entered into within 7 days (excluding 
     any Saturday or Sunday) before slaughter of the livestock by 
     a packer, a person acting through the packer, or a person 
     that directly or indirectly controls, or is controlled by or 
     under common control with, the packer;
       ``(2) a cooperative or entity owned by a cooperative, if a 
     majority of the ownership interest in the cooperative is held 
     by active cooperative members that--
       ``(A) own, feed, or control livestock; and
       ``(B) provide the livestock to the cooperative for 
     slaughter;
       ``(3) a packer that is not required to report to the 
     Secretary on each reporting day (as defined in section 212 of 
     the Agricultural Marketing Act of 1946 (7 U.S.C. 1635a)) 
     information on the price and quantity of livestock purchased 
     by the packer; or
       ``(4) a packer that owns 1 livestock processing plant; 
     or''.
       (b) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by subsection (a) take effect on the date of enactment 
     of this Act.
       (2) Transition rules.--In the case of a packer that on the 
     date of enactment of this Act owns, feeds, or controls 
     livestock intended for slaughter in violation of section 
     202(f) of the Packers and Stockyards Act, 1921 (as amended by 
     subsection (a)), the amendments made by subsection (a) apply 
     to the packer--
       (A) in the case of a packer of swine, beginning on the date 
     that is 18 months after the date of enactment of this Act; 
     and
       (B) in the case of a packer of any other type of livestock, 
     beginning as soon as practicable, but not later than 180 
     days, after the date of enactment of this Act, as determined 
     by the Secretary of Agriculture.

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