WHAT THEY ARE SAYING: Bipartisan Members of Congress, Key Agriculture Stakeholders Applaud President Biden's Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain

Today, after President Biden announced his Administration's Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain, bipartisan members of Congress and leaders of key stakeholder organizations representing farmers and ranchers across the country said this plan will create a more competitive, fair, resilient meat and poultry sector, with better earnings for producers and more choices and affordable prices for consumers.

This plan of action builds on the President's July Executive Order on Promoting Competition in the American Economy to lower prices for American consumers.

See below for what key stakeholders and the media are saying:

Senator Chuck Grassley (R - Iowa): "Pres Biden is mtg w farmers 2day like IA Farm Bureau Pres Brent Johnson to discuss how Big 4 packers screw cattle producers + consumers I've long worked to restore competition in cattle market & hope WH urges support of bipartisan Fischer Grassley Tester Wyden cattle market bill" [Tweet, 1/3/22] [See also follow up Tweet, 1/3/22 acknowledging White House's support for the bipartisan legislation.

Senate Agriculture Chairwoman Debbie Stabenow (D – Michigan): "As we heard from farmers and ranchers at our hearing and throughout the pandemic, the consolidated power and dominance of just a few large meatpackers threatens our food security and hurts farmers and families alike. The Biden-Harris Administration Action Plan takes important steps forward in creating a stronger and fairer meat and poultry supply chain that respects workers, stabilizes food prices for consumers, and fairly compensates farmers and ranchers for putting food on our tables." [Statement, 1/3/22]

Senator Jon Tester (D - Montana): "Consolidation in the ag industry has been a problem as long as I've been a farmer. I'm glad to see the Administration has a plan to tackle the root problems and implement many of my efforts to level the playing field for our family farmers and ranchers. Thread" [Tweet, 1/3/22]

Senator Deb Fischer (R – Nebraska): "It's important for @POTUS to recognize the significance of the meat industry and our hardworking family farmers and ranchers. This industry is vital to Nebraska's economy and it's critical that all segments of the supply chain can succeed." [Tweet, 1/3/22]

Congresswoman Cindy Axne (D – Iowa): "Even as consumers are paying more and more for their meat, cattle producers are making less while large packers dominate with record profits. I've heard it consistently from Iowa cattlemen: we need more competition and transparency in the market. President Biden and @SecVilsack's announcement today will go a long way in providing more market opportunities and fairness for cattle producers in Iowa and across the country." [Tweet, 1/3/22]

Congressman Randy Feenstra (R – Iowa): "I'm pleased to hear the Cattle Price Discovery and Transparency Act was highlighted by Pres. Biden during his meeting with producers today. This bipartisan, bicameral bill — which I recently introduced in the House w/ @RepCindyAxne — will help independent cattle producers." [Tweet, 1/3/22]

Congresswoman Chellie Pingree (D – Maine): "For too long, our meat and poultry supply chain has been over reliant on a handful of large-scale companies that dominate the market. The COVID-19 pandemic only exposed that our food system is severely flawed and is badly in need of urgent reform. As prices at the grocery store skyrocket, the men and women who produce our food aren't seeing that benefit. Small producers and consumers are in desperate need of relief. As the author of bipartisan legislation to expand and diversify the meat and poultry processing sector by supporting small-scale processing facilities, I applaud today's announcement. The Biden-Harris Administration's action plan announced today will work to create a more competitive and resilient meat and poultry sector and is a win for local farmers and small businesses, the market, consumers, and hungry Americans." [Statement, 1/3/22]

Iowa Attorney General Tom Miller: "Livestock is vital to Iowa farmers and Iowa's economy. Fair and robust competition in meat processing benefits livestock producers and consumers." [Statement, 1/3/22]

Zippy Duvall, President, American Farm Bureau Federation: "AFBF appreciates the Biden administration's continued work to ensure a fair and competitive meat processing system. We must get to the bottom of why farmers and ranchers continue to receive low payments while families across America endure rising meat prices. Farmers and ranchers want a fair shake. The joint initiative between USDA and the Department of Justice to create an online portal to report competition law violations, and efforts to strengthen the Packers & Stockyards act, will go a long way to ensuring fairness in the industry. More accurately defining Product of the USA labeling will also allow families to make more well-informed decisions at the grocery store. We are encouraged by the administration's willingness to work with lawmakers on both sides of the aisle to improve price discovery in the cattle markets. We urge bipartisanship throughout this process. Securing fair prices for farmers and for families is a goal that transcends party lines." [Statement, 1/3/22]

Rob Larew, President, National Farmers Union: "National Farmers Union has long advocated for increased competition in the meat-processing industry. Our national Fairness for Farmers campaign has highlighted the devastating impact consolidation has had on America's family farmers and ranchers all over the country. At every state of the process, farmers are squeezed and forced to choose between fewer and excessively expensive options while consumers are paying premiums at grocery stores. We are hopeful that the Administration's renewed focus on boosting competition and reducing prices will force the changes needed to create an even playing field for those who take on the responsibility of feeding America, and thank President Biden for leading the effort to address these issues." [Statement, 1/3/22]

Brooke Miller, President, United States Cattlemen's Association (USCA): "Today's announcement puts into motion what our members have, for years, urged action on - empowering the independent producer and processor to create a more robust and resilient food system. USCA commends the Biden-Harris Administration for its persistence in working to restore competition throughout the U.S. economy. We are hopeful that the Action Plan unveiled today will help bring transparency and true price discovery to the cattle marketplace, bring back truth in labeling through the closure of the Product of the U.S.A. loophole, and invest in a stronger - and more American - meat industry. We look forward to working with the Administration to implement the provisions outlined in this Action Plan." [Statement, 1/3/22]

Family Farm Action Alliance: "Today the White House made a staunch pledge of support for independent farmers, ranchers, processors, and workers by announcing a plan to improve competition and resilience in the meat and poultry sectors. In keeping with objectives from July's Executive Order on Promoting Competition in the American Economy, today's Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain aims to loosen the grip that consolidated corporations currently have on the industries. The Action Plan honors recommendations made by Family Farm Action Alliance staff and supporters, and in several cases goes above and beyond the requested level of investment. We applaud the increase to $1 billion toward expanding independent processing capacity." [Statement, 1/3/22]

Eric Deeble, Policy Director, National Sustainable Agriculture Coalition: "The National Sustainable Agriculture Coalition (NSAC) applauds the Administration's Action Plan. Now is the time for serious reform to restore fairness, transparency, and competition in agriculture and address concentration and consolidation, the structural root of many challenges that farmers, ranchers, and food processors face. This plan is a very positive step to ensure farmers and ranchers receive fair prices and that the entire processing sector is more resilient, flexible, and fair to workers, too. Increasing independent processing options for farmers and ranchers also creates a more competitive market that benefits consumers." [Statement, 1/3/22]

Brent Johnson, President, Iowa Farm Bureau: ""The system that exists today is broken and especially harmful to small and medium-sized producers," Johnson said. "We are grateful for the administration's attention to this issue that impacts not only farmers' profitability and rural vitality, but also affects consumers at the grocery store. We must work toward a more stable, resilient food supply chain that can better endure unforeseen challenges and ensure farmers are paid an honest price for their product." [Statement, 1/3/22]

Darin Von Ruden, President, Wisconsin Farmers Union: "Investing in meat processing is an investment in rural America and the security of our food supply. Expanding processing capacity opens the door for farmers to regain some control by marketing animals directly to consumers. However, we also need to increase competition and fairness in the marketplace and address misleading labels. This Administration's attention to the topic and this investment in diversified meat processing capacity are appreciated. Farmers Union looks forward to continuing to work with stakeholders to improve the situation for farmers and consumers." [Statement, 1/3/22]

Matt Hildreth, Executive Director, RuralOrganizing.org: "Today marks another step forward in the Biden-Harris Administration's effort to promote competition and it's a vital step for rural communities. For too long, monopolies in the meat and poultry processing industries have used their power to harm farmers, consumers, and rural communities. Over the last few years, many Americans learned firsthand what rural communities have long known: our meat and poultry processing industries have been unchecked and put their profits first. That was especially clear during the pandemic." [Statement, 1/3/22]

And in July, USDA announced plans to expand meat and poultry processing capacity as part of efforts to increase competition, level the playing field for family farmers and ranchers, and build a better food system. As part of this announcement, USDA issued an RFI and received nearly 450 comments, which can be viewed here.

Reuters - Biden unveils plan to boost competition in U.S. meat industry

The United States will issue new rules and $1 billion in funding this year to support independent meat processors and ranchers as part of a plan to address a lack of "meaningful competition" in the meat sector, President Joe Biden said on Monday.

The initiative comes amid rising concerns that a handful of big beef, pork and poultry companies have too much control over the American meat market, allowing them to dictate wholesale and retail pricing to profit at the expense of their suppliers and customers.

"Capitalism without competition isn't capitalism. It's exploitation," Biden said. "That's what we're seeing in meat and poultry industries now."

AP - Biden to meet with farmers as he seeks to cut meat prices

President Joe Biden will meet virtually with independent farmers and ranchers to discuss initiatives to reduce food prices by increasing competition within the meat industry, part of a broader effort to show the administration is trying to combat inflation.

The administration is targeting meat processing plants, which can shape the prices paid to farmers and charged to consumers. The White House issued a fact sheet saying that the top four companies control 85% of the beef market. In poultry, the biggest four processing firms control 54% of the market. And for pork, the figure is 70% for the four biggest firms.
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The Justice Department and the Agriculture Department will launch a joint effort to make it easier to report anti-competitive actions to the government. The administration will also seek to improve the transparency of the cattle market.

Des Moines Register - Biden unveils $1 billion plan to increase meatpacking competition, lower consumer prices

The Biden administration announced Monday it will allocate $1 billion to expand independent beef, pork and chicken processing in an effort to increase competition and reduce costs for consumers.

The White House said the plan also is aimed at boosting profits for livestock producers, who have complained they are getting low prices while consumer costs have soared. President Joe Biden met Monday with farmers, ranchers and independent processors to roll out the initiative, tapping the $1.9 trillion American Rescue Act to fund the effort.

NBC - Biden pushes for more competition in meat industry during meeting with farmers

President Joe Biden met with farmers, ranchers and independent meat processors on Monday to discuss his plans to create a more competitive supply chain in hopes of boosting profits for family farms and lowering prices for consumers.

The Biden administration is aiming to provide $1 billion in American Rescue Plan funds to help expand independent processing capacity, and provide funding that would give independent meat producers access to cold storage and other equipment to improve distribution of their products. It will also work with lenders to provide independent processors with credit and devote money to workforce training and safety, the White House said.

CNN - White House investing $1 billion to boost competition in meat-processing industry and lower consumer prices

The White House on Monday announced it would allocate $1 billion in funding from the American Rescue Plan to independent meat and poultry producers as part of an effort to boost competition in the meat-processing industry and lower prices for consumers.

President Joe Biden met virtually with family and independent farmers and ranchers on Monday to discuss the administration's new four-part plan.

"Farmers and ranchers are being driven out of business -- sometimes businesses that have been around for generations," Biden said during the meeting at the White House. "It strikes at their dignity, their respect and the family legacy so many of them carried for generations after generation."

WSJ - Biden Promotes Plan Aimed at Tackling Meat Prices - WSJ

A White House overview released Monday, which includes administration actions that are already under way and legislative proposals Mr. Biden supports, calls for $1 billion to be dedicated to expanding independent meat processing. The Biden administration has promoted that money as a way to increase competition for farmers' livestock and poultry and help make the food system less susceptible to disruption.

The White House said Monday the U.S. Department of Agriculture was increasing available funding for those efforts. The USDA committed $500 million this summer for grants, loans and other support to establish new processing facilities and help diversify the meat industry. In October, the USDA promised another $100 million for loan guarantees to start up or expand meat and poultry processing facilities.

Scott Blubaugh, president of the Oklahoma Farmers Union, praised Mr. Biden's efforts during the meeting, saying: "If we are able to be able to process our animals on a more local level, we can retain more of that retail food dollar at our farm gates."

Washington Post – In latest effort to combat rising prices, White House to offer $1 billion in aid for smaller meat-industry producers

"We've seen too many industries become dominated by a handful of large companies that control most of the business and most of the opportunities — raising prices and decreasing options for American families, while also squeezing out small businesses and entrepreneurs," a White House statement said. "When dominant middlemen control so much of the supply chain, they can increase their own profits at the expense of both farmers — who make less — and consumers, who pay more."

There is a disconnect between what ranchers and cattle raisers earn per animal and what the major meat processors are charging for the finished meat at the wholesale and retail levels, said Scott Bennett, the director of congressional relations at the American Farm Bureau Federation. "Everybody is scratching their heads wondering what is going on. We've seen extreme volatility in the cattle market," he said.

Bennett said the Farm Bureau has been advocating for additional slaughterhouse capacity.

"These small local regional packers are great for our communities. We've been lobbying for having those types of facilities more ready and available, and we're pleased to see this administration funnel hundreds of millions of dollars into that effort."