Ag Policy Blog

Senators Want Special Investigator at USDA for Packers and Stockyards Violations

Chris Clayton
By  Chris Clayton , DTN Ag Policy Editor
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A bipartisan group of senators introduced a bill that would establish a special investigator to look into violations of the Packers and Stockyards Act. (DTN file photo by Chris Clayton)

A bipartisan group of U.S. senators on Tuesday introduced legislation to establish a special investigator at USDA to look into competition issues surrounding meatpackers.

The Meat and Poultry Special Investigator Act would create and empower a team of investigators at USDA to prevent anticompetitive practices in the meat and poultry industry by enforcing existing antitrust laws, in coordination with the Department of Justice and the Federal Trade Commission. The investigator's office would specifically focus on the meatpacking industry by restricting its work to investigating entities that fall under the Packers and Stockyards Act of 1921.

USDA used to have the Grain Inspectors, Packers and Stockyards Administration (GIPSA) that focused on Packers and Stockyards Act violations, but the agency was split up during the first Trump administration with the P&S inspectors rolled into the Agricultural Marketing Service.

Senators said such an investigator's office would "hold meat and poultry companies accountable for anticompetitive behavior and to lower skyrocketing grocery bills."

"For too long, Oregon ranchers and consumers have been greedily exploited by the Big Four meatpackers that sneak their way around regulations," said Sen. Ron Wyden, D-Ore., ranking member of the Senate Finance Committee. "While local ranchers work tirelessly day and night to support their small business and feed families across the country, these big companies keep raking in bigger bills at the expense of local communities in red and blue states alike. It's way past time to level the playing field for local ranchers and bring grocery prices down for consumers at the meat counter by better enforcing laws that are already on the books."

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DTN reached out to the Meat Institute about the bill. The group was putting together a response.

The bill is similar to one introduced in 2021 by Sen. Chuck Grassley, R-Iowa, and former Sen. Jon Tester, D-Mont., after livestock markets became out of whack during the pandemic.

"For decades, America's Big Four meatpackers' anticompetitive practices have made it harder for Iowa cattle producers to receive a fair price," Sen. Grassley said. "Our bill empowers USDA, in coordination with the Justice Department and Federal Trade Commission, to crack down on bad actors, ensuring a fair and functional marketplace that supports everyone who produces and enjoys quality American meat."

Senators signing onto the bill along with Wyden and Grassley includes Republicans Mike Rounds of South Dakota, Cindy Hyde Smith of Mississippi and John Hoeven of North Dakota. Other Democrats on the bill include Sens. Richard Blumenthal of Connecticut, Martin Heinrich of New Mexico, Adam Schiff of California and Peter Welch of Vermont.

The bill is backed by the U.S. Cattlemen's Association (USCA) and National Farmers Union (NFU).

"If the bad actors in the marketplace have nothing to hide, then they should have no problem with reinforcing USDA's oversight authority through the measures provided in this bill. It's not enough that producers stand on a level playing field in the marketplace -- there also needs to be a referee, with a whistle, there to throw a flag when there's a penalty," said Justin Tupper, president of USCA. "USCA fully supports the Meat Packing Special Investigator Act and would like to applaud our Champions for 'Competition' in the Senate who never waiver on supporting producers not just in Oregon, South Dakota, and Iowa -- but across the countryside,"

Rob Larew, president of NFU, added, "A special investigator at USDA is an important step to cracking down on unfair practices and leveling the playing field for independent livestock producers. Senators Wyden, Rounds, and Grassley get it--strong enforcement keeps monopolies in check. When family farmers and ranchers thrive, so do our rural communities."

Chris Clayton can be reached at Chris.Clayton@dtn.com

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