For many years, Bluestem's been concerned about monopoly power in the meatpacking industry and its consequences on ranchers and livestock farmers.
I'm not alone. In Friday's South Dakota Searchlight, South Dakota Farmers Union President Doug Somke speaks to the issue in new commentary.
Expansion of antitrust enforcement in agriculture is a hopeful sign for farmers and ranchers
By Doug SomkeI’m a fourth-generation Brown County farmer and cattle rancher determined to make it possible for my children to be fifth-generation family farmers. That’s why I’ve been advocating since the 1980s for enforcement of antitrust laws protecting family farmers and ranchers from abuse and market manipulation by meatpackers.
Now, as president of South Dakota’s largest agriculture organization, I’m encouraged by the U.S. Department of Justice Antitrust Division’s decision to expand its resources and efforts dedicated to antitrust enforcement in agriculture. This expansion shows the division is listening to cattle producers and other agriculture producers negatively impacted by corporate market manipulation.
For decades, South Dakota Farmers Union members joined with the National Farmers Union in advocating for an investigation into manipulation of agriculture markets. In 2022 and 2023, South Dakota Farmers Union led a group of South Dakota cattle producers to Washington, D.C., to meet with Michael Kades, deputy assistant attorney general for the Antitrust Division. In 2023, Kades attended the South Dakota Farmers Union State Convention.
Kades stayed in South Dakota for a few extra days and met one-on-one with our members, touring their cattle operations, feedlots and sale barns to hear their testimonials about the market manipulation happening to them and their neighbors. The Justice Department’s action to increase staffing dedicated to civil and criminal enforcement in the agriculture sector gives us hope that justice will prevail and a wrong will be righted.
Kades made the announcement June 21. The Justice Department intends to hire more attorneys for its Chicago office, who will primarily focus on antitrust, competition and fairness within agricultural supply chains. This new team is the first of its kind in the Midwest.
Even though some may try to make this a political football, it’s not. This effort has been a long time coming — over four decades and through multiple presidential administrations, both Republican and Democratic. Not until the meatpacking plant shutdowns and meat shortages at stores caused by the COVID-19 pandemic did market manipulation and consolidation really gain the attention it deserved. I’m proud that Farmers Union’s Fairness for Farmers campaign has been leading the charge for change.
The Justice Department’s announcement gives me hope and a little satisfaction that all our work advocating for South Dakota’s cattle industry and fairness for farmers has been worth the effort.
You can do a lot when you have money – like the meatpacking companies – but you can also do a lot with large numbers and a united voice. This is an example of what can be done when cattle farmers, ranchers and consumers from across the nation come together.
This commentary from South Dakota Searchlight is republished online under Creative Commons license CC BY-NC-ND 4.0.
Graphic: A chart from the U.S. Department of Agriculture’s Economic Research Service shows that prices for cattle, hogs and broilers (young chickens) have not kept pace with inflation. From South Dakota Searchlight.
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