Senators Chuck Grassley and Tina Smith introduced the Livestock Consolidation Research Act on Mar. 24, a bipartisan bill aimed at studying the economic impact of market concentration in the livestock industry on farmers, ranchers, and consumers.
The issue is important because a small number of large companies control most of the meat and poultry processing industry, which affects prices for both producers and shoppers. The proposed legislation seeks to provide more comprehensive data about how this consolidation influences incomes for farmers as well as costs at grocery stores.
“Consolidation in the meat and poultry industry impacts Iowa producers and consumers alike, and right now, they’re feeling the squeeze. The current patchwork of available data isn’t enough to tackle this problem. Our bipartisan legislation will work to address ag concentration by providing farmers, ranchers and shoppers a full picture of how the market is working,” Grassley said.
Smith said, “Just a handful of large companies dominate the meat and poultry processing industry, which means higher prices for consumers and shrinking earnings for farmers. On top of that, farmers and ranchers are dealing with the worst farm economy in thirty years, skyrocketing input costs, and a cost-of-living crisis at home. We can all see that this market concentration spells disaster.” She added that their bill would help highlight these impacts so lawmakers can create solutions.
According to background information provided with the announcement, just four companies control 85 percent of cattle processing in the United States. This lack of competition often results in lower payments to farmers while increasing consumer prices.
The Livestock Consolidation Research Act instructs the Department of Agriculture’s Economic Research Service to carry out research into these issues. Grassley—who has served since 1958 in public office including time in Iowa’s state legislature—is one of only two active farmer-senators raising corn and soybeans in Butler County according to his official website. He also assists Iowans with federal agency matters according to his official website.
Grassley has earned degrees from University of Northern Iowa according to his official website, brings experience from factory work as well as farming according to his official website, has been married since 1954 with five children according to his official website, serves on key Senate committees with an emphasis on bipartisanship according to his official website, making him Iowa’s longest-serving U.S. senator.
Grassley said he looks forward to advancing this legislation as part of a future Farm Bill.
