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Mar. 15, 2010 Agri Marketing, was in attendance at the USDA/DOJ event, formally named "A Dialogue on Competition Issues Facing Farmers in Today's Agricultural Marketplace," held in the Des Moines, IA, suburb of Ankeny. Here are some observations: 1. No demonstrations were held at the event. There was a rally the preceding evening in which a multitude of people stated their opinions on a variety of issues. No governmental representatives were in attendance. 2. Security was extremely tight. When the Secretaries were speaking, no one was allowed to enter or leave the room. Plain clothes officers ringed the room. 3. Attendance. It is estimated over 800 people attended the event. Virtually anybody who is somebody in the ag industry was in attendance, including corporate agribusiness executives from all of the industry's sectors (crop inputs, machinery, livestock, credit, insurance, etc.), ag trade association directors, Deans and professors from several ag universities, farmer-leaders of ag organizations and many independent ag producers. 4. Media. Every major ag media company had at least one representative in attendance. In addition, the general business press was present, including Forbes, Associated Press, Fortune, New York Times, Los Angeles Times, Iowa Public TV and Reuters. 5. USDA's major issue. Sec'y Vilsack said the purpose of the workshops is to explore if the present system is fair and to develop better policy if it is found inadequate. He said he is concerned about the erosion of rural communities and their populations and has initiated a number of actions to bolster them. 6. DOJ's major issue. Attorney General Holder said the major objective of the workshops was for the Department to obtain a more complete understanding of the ag industry which is core to the success of the U.S. economy. He said, in addition to its on-going activities, DOJ has made the investigation of the ag industry its number one priority. He cited DOJ's recent blockage of JBS and National Beef's and Dean Foods and Foremost Farms proposed mergers. To read his prepared remarks, click here 7. DOJ's Ass't Attorney Gen'l, Christine Varney, who oversees the Department's Antitrust group, issued a stern warning to the group. She said her Agency will be on an "unrelenting quest to find the proper balance to assure the competitiveness of the ag industry." Her two major objectives were to make sure market transparency is "aggressively pursued" and to determine if biotech patent strategies are being "improperly extended to preserve a monopoly." 8. Ironically, as she made her comments, CF Industries and Terra announced they would merge, creating the world's second largest fertilizer companies. 9. Reactions. *One prominent ag producer said "we should be careful what we wish for." He is concerned of unintended consequences which may result if patent expiration strategies are improperly regulated. He cites companies' major R & D investments and the need to incentivize them to continue. *Reacting to a comment made by one of the panelists that living organisms (i.e. seed genetics) should not be allowed, an independent seed company owner said, "I guess my future would be in selling generic seed." *One ag trade association executive located in the Washington, D.C., area said it has become increasingly apparent that DOJ's antitrust initiatives have been more active than in recent years. *There were no outbursts from the respectful crowd. 10. Following the formal panels, attendees were given the opportunity to provide their comments to a DOJ and USDA representative. Their issues included anti-GMO, the high price of seed, overpaid CEOs, unfair patent protection, organic production contamination, lack of small farmers' competitiveness, the U.S. as an authoritarian state and low dairy prices. 11. DOJ received over 15,000 written comments prior to the event. All will be posted on its website, as well as the remarks of the panel participants. 12. The Des Moines Area Community College (DMACC) was a wonderful host for the event. Its campus boasts 25 buildings. The new FFA Enrichment Center, which is on the DMACC campus is an impressive facility sporting the large conference room in which the USDA/DOJ event was held and many smaller classrooms. Tweet |
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