,i #aafth ,,congress #ast ,session ,h4 ,r4 #bicc ,,in ,,the ,,house ,,of ,,representatives ,may #bb1 #bjai,mr4 ,pocan 7for himself1 ,ms4 ,de,lauro1 ,mr4 ,khanna1 ,ms4 ,pingree1 ,mr4 ,ryan1 ,mr4 ,blumenauer1 and ,ms4 ,schakowsky7 introduced the following bill2 which was referred to the ,committee on ,agriculture1 and in addition to the ,committee on the ,judiciary1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to impose a moratorium on large agribusiness1 food and beverage manufacturing1 and grocery retail mergers1 and to establish a commission to review large agriculture1 food and beverage manufacturing1 and grocery retail mergers1 concentration1 and market power4 #a4 ,short title ,this ,act may be cited as the ,food and ,agribusiness ,merger ,moratorium and ,antitrust ,review ,act of #bjai4 #b4 ,findings ,congress finds the following3 7#a7 ,concentration in the food and agricultural economy1 including mergers1 acquisitions1 and other combinations and alliances among suppliers1 packers1 integrators1 other food processors1 distributors1 and retailers has been accelerating at a rapid pace since the #aihjs1 and particularly since the #bjjg through #bjji recession4 7#b7 ,the trend toward greater concentration in food and agriculture has important and far-reaching implications not only for family farmers1 but also for food chain workers1 the food we eat1 the communities we live in1 and the integrity of the natural environment upon which we all depend4 7#c7 ,in the past three decades1 the top #d largest pork packers have seized control of #ga percent of the market1 up from #cf percent4 ,over the same period1 the top #d beef packers have expanded their market share from #cb percent to #he percent4 ,the top #d flour millers have increased their market share from #dj percent to #fd percent4 ,the market share of the top #d soybean crushers has jumped from #ed percent to #gi percent1 and the top #d wet corn processors control of the market has increased from #fc percent to #hf percent4 7#d7 ,today the top #d sheep1 poultry1 and fluid milk processors now control #eg percent1 #ec percent1 and #ej percent of the market1 respectively4 7#e7 ,the top #d grain companies today control as much as #ij percent of the global grain trade4 7#f7 ,during the past #b years there has been a wave of consolidation among global seed and crop-chemical firms1 #c companies now control nearly #b_/c of the world's commodity crop seeds4 ,those same #c companies now also control nearly #gj percent of all agricultural chemicals and pesticides4 7#g7 ,in the ,united ,states1 the #d largest corn seed sellers accounted for #he percent of the market in #bjae1 up from #fj percent in #bjjj4 ,over the past #bj years1 the cost for an acre's worth of seeds for an average corn farmer has nearly quadrupled1 and the cost of fertilizer has more than doubled4 ,yet corn yields increased only #cf percent over that time1 and the price received for the sale of a bushel of corn increased only #ca percent4 7#h7 ,a handful of firms dominate the processing of every major commodity4 ,many of them are vertically integrated1 which means that they control successive stages of the food chain1 from inputs to production to distribution4 ,the growing number and scale of cross-border agribusiness and food mergers have put foreign firms1 often with considerable government backing1 into prominent and even dominant positions in the ,united ,states beef1 hog1 poultry1 seed1 fertilizer1 and agrichemical sectors4 7#i7 ,growing concentration of the agricultural sector has restricted choices for farmers trying to sell their products4 ,as the bargaining power of agribusiness firms over farmers increases1 concentrated agricultural commodity markets are stacked against the farmer1 with buyers of agricultural commodities often possessing regional dominance in the form of oligopsony or monopsony relative to sellers of such commodities4 7#aj7 ,the high concentration and consolidation of buyers in agricultural markets has resulted in the thinning of both cash and futures markets1 thereby allowing dominant buyers to leverage their market shares to move those markets to the detriment of family farmers and ranchers4 7#aa7 ,buyers with oligopsonistic or monopsonistic power have incentives to engage in unfair and discriminatory acts that cause farmers to receive less than a competitive price for their goods4 ,at the same time1 some ,federal courts have incorrectly required a plaintiff to show harm to competition generally1 in addition to harm to the individual farmer1 when making a determination that an unfair1 unjustly discriminatory1 deceptive1 or preferential act exists under the ,packers and ,stockyards ,act of #aiba4 7#ab7 ,the farmer's share of every retail dollar has plummeted from #da percent in #aiej1 to less than #ae percent today1 while the profit share for farm input1 marketing1 and processing companies has risen4 7#ac7 ,while agribusiness conglomerates are posting record earnings1 farmers are facing desperate times4 ,since #bjac1 net farm income for ,united ,states farmers has fallen by more than half and median on-farm income was negative in #bjag and in #bjah and is expected to be negative again in #bjai4 7#ad7 ,the benefits of low commodity prices are not being passed on to ,american consumers4 ,the gap between what shoppers pay for food and what farmers are paid is growing wider4 7#ae7 ,the steadily rising price of food has outpaced growth in incomes for typical workers4 ,since the ,great ,recession1 the annual growth of real prices for food at the supermarket have risen nearly #c times faster than typical earnings4 7#af7 ,there is growing consensus that economic consolidation contributes to the widening gap in economic opportunity in the ,united ,states and bigger1 more dominant firms are more likely to deliver profits to investors than to raise wages or benefits4 ,mega-mergers in the food and agribusiness industries can lead to growing monopsony power abuse resulting in wage suppression1 along with massive layoffs as companies shutter factories and facilities1 harming working families and communities4 7#ag7 ,concentration1 low prices1 anticompetitive practices1 and other manipulations and abuses of the agricultural economy are driving small family farmers out of business4 ,farmers are going bankrupt or giving up1 and few are taking their places2 more farm families are having to rely on other jobs to stay afloat4 ,eighty-three percent of farm household income is expected to come from off-farm work this year1 up from #ec percent in #aifj4 7#ah7 ,eighty-one percent of ,america's farmed cropland is now controlled by #ae percent of farms1 and the number of farmers leaving the land will continue to increase unless and until these trends are reversed4 7#ai7 ,the decline of small family farms undermines the economies of rural communities across ,america2 it has pushed ,main ,street businesses1 from equipment suppliers to small banks1 out of business or to the brink of insolvency4 7#bj7 ,increased concentration in the agribusiness sector has a harmful effect on the environment2 corporate hog farming1 for example1 threatens the integrity of local water supplies and creates noxious odors in neighboring communities4 ,concentration also can increase the risks to food safety and limit the biodiversity of plants and animals4 7#ba7 ,the decline of family farming poses a direct threat to ,american families and family values1 by subjecting farm families to turmoil and stress4 ,farm advocates across the country are reporting an increase in farmer suicides over the past several years4 7#bb7 ,the decline of family farming causes the demise of rural communities1 as stores lose customers1 churches lose congregations1 schools and clinics become under-used1 career opportunities for young people dry up1 and local inequalities of wealth and income grow wider4 7#bc7 ,these developments are not the result of inevitable market forces4 ,its problems arise rather from policies made in ,washington1 including farm1 antitrust1 and trade policies4 7#bd7 ,past congressional action to remediate market failure1 such as enacting country-of-origin labeling to provide transparency for domestic farmers1 ranchers1 and consumers regarding agricultural commodity origins1 have been overturned for key commodities by oligopolistic conglomerates that use undifferentiated imports to reduce domestic farm prices4 7#be7 ,to restore competition in the agricultural economy1 and to increase the bargaining power and enhance economic prospects for family farmers1 the trend toward concentration must be reversed4 #c4 ,definitions ,in this ,act3 7#a7 ,agricultural input supplier ,the term agricultural input supplier means any person 7excluding agricultural cooperatives7 engaged in the business of selling1 in interstate or foreign commerce1 any product to be used as an input 7including seed1 germ plasm1 hormones1 antibiotics1 fertilizer1 and chemicals1 but excluding farm machinery7 for the production of any agricultural commodity1 except that no person shall be considered an agricultural input supplier if sales of such products are for a value less than #aj1jjj1jjj per year4 7#b7 ,broker ,the term broker means any person engaged in the business of negotiating sales and purchases of any agricultural commodity in interstate or foreign commerce for or on behalf of the vendor or the purchaser1 except that no person shall be considered a broker if the only sales of such commodities are for a value less than #aj1jjj1jjj per year4 7#c7 ,commission merchant ,the term commission merchant means any person engaged in the business of receiving in interstate or foreign commerce any agricultural commodity for sale1 on commission1 or for or on behalf of another1 except that no person shall be considered a commission merchant if the only sales of such commodities are for a value less than #aj1jjj1jjj per year4 7#d7 ,dealer ,the term dealer means any person 7excluding agricultural cooperatives7 engaged in the business of buying1 selling1 or marketing agricultural commodities in interstate or foreign commerce1 except that-- 7,a7 no person shall be considered a dealer with respect to sales or marketing of any agricultural commodity of that person's own raising2 and 7,b7 no person shall be considered a dealer if the only sales of such commodities are for a value less than #aj1jjj1jjj per year4 7#e7 ,integrator ,the term integrator means an entity that contracts with farmers for grower services to raise chickens or hogs to slaughter size and weight4 ,the integrator owns the chickens or hogs1 supplies the feed1 slaughters1 and further processes the poultry or pork4 7#f7 ,processor ,the term processor means any person 7excluding agricultural cooperatives7 engaged in the business of handling1 preparing1 or manufacturing 7including slaughtering and food and beverage manufacturing7 of an agricultural commodity1 or the products of such agricultural commodity1 for sale or marketing for human consumption1 except that no person shall be considered a processor if the only sales of such products are for a value less than #aj1jjj1jjj per year4 7#g7 ,retailer ,the term retailer means any person 7excluding agricultural cooperatives1 cooperative retailers1 and cooperative distributers7 licensed as a retailer under the ,perishable ,agriculture ,commodities ,act of #aicj 7#g ,u4,s4,c4 #dii;a7b771 except that no person shall be considered a retailer if the only sales of such products are for a value less than #aj1jjj1jjj per year4 ,i ,moratorium on large agribusiness1 food and beverage manufacturing1 and grocery retail mergers #aja4 ,moratorium on large agribusiness1 food and beverage manufacturing1 and grocery retail mergers 7a7 ,in general 7#a7 ,moratorium ,until the date referred to in paragraph 7#b7 and except as provided in subsection 7b7-- 7,a7 no dealer1 processor1 commission merchant1 agricultural input supplier1 broker1 or operator of a warehouse of agricultural commodities or retailer with annual net sales or total assets of more than #afj1jjj1jjj shall merge or acquire1 directly or indirectly1 any voting securities or assets of any other dealer1 processor1 commission merchant1 agricultural input supplier1 broker1 or operator of a warehouse of agricultural commodities or retailer with annual net sales or total assets of more than #af1jjj1jjj2 and 7,b7 no dealer1 processor1 commission merchant1 agricultural input supplier1 broker1 or operator of a warehouse of agricultural commodities or retailer with annual net sales or total assets of more than #af1jjj1jjj shall merge or acquire1 directly or indirectly1 any voting securities or assets of any other dealer1 processor1 commission merchant1 agricultural input supplier1 broker1 or operator of a warehouse of agricultural commodities or retailer with annual net sales or total assets of more than #afj1jjj1jjj if the acquiring person would hold-- 7i7 #ae percent or more of the voting securities or assets of the acquired person2 or 7ii7 an aggregate total amount of the voting securities and assets of the acquired person in excess of #ae1jjj1jjj4 7#b7 ,date ,the date referred to in this paragraph is the effective date of comprehensive legislation-- 7,a7 addressing the problem of market concentration in the food and agricultural sector2 and 7,b7 containing a section stating that the legislation is comprehensive legislation as provided in section #aja of the ,food and ,agribusiness ,merger ,moratorium and ,antitrust ,review ,act of #bjai4 7b7 ,waiver authority ,the ,attorney ,general shall have authority to waive the moratorium imposed by subsection 7a7 only under extraordinary circumstances1 such as insolvency or similar financial distress of one of the affected parties4 7c7 ,exemptions ,the classes of transactions described in section #g;,a7c7 of the ,clayton ,act 7#ae ,u4,s4,c4 #ah;a7c77 are exempt from subsection 7a74 7d7 ,avoidance ,any transaction or other device entered into or employed for the purpose of avoiding the moratorium contained in subsection 7a7 shall be disregarded1 and the application of the moratorium shall be determined by applying subsection 7a7 to the substance of the transaction4 7e7 ,rulemaking ,the ,attorney ,general shall promulgate regulations that the ,attorney ,general determines are necessary to implement this section4 ,,ii ,agriculture ,concentration and ,market ,power ,review ,commission #bja4 ,establishment of ,commission 7a7 ,establishment ,there is established a commission to be known as the ,food and ,agriculture ,concentration and ,market ,power ,review ,commission 7hereafter in this title referred to as the ,commission74 7b7 ,purposes ,the purpose of the ,commission is to-- 7#a7 study the nature and consequences of concentration in ,america's food and agricultural economy2 and 7#b7 make recommendations on how to change underlying antitrust laws and other ,federal laws and regulations to keep a fair and competitive agriculture marketplace for family farmers1 other small and medium-sized agriculture producers1 generally1 and the communities of which they are a part4 7c7 ,membership of ,commission 7#a7 ,composition ,the ,commission shall be composed of #ab members as follows3 7,a7 ,three persons1 #a of whom shall be a person currently engaged in farming or ranching1 shall be appointed by the ,president pro tempore of the ,senate upon the recommendation of the majority leader of the ,senate1 after consultation with the ,chairs of the ,committee on ,agriculture1 ,nutrition1 and ,forestry and of the ,committee on the ,judiciary4 7,b7 ,three persons1 #a of whom shall be a person currently engaged in farming or ranching1 shall be appointed by the ,president pro tempore of the ,senate upon the recommendation of the minority leader of the ,senate1 after consultation with the ranking minority member of the ,committee on ,agriculture1 ,nutrition1 and ,forestry and of the ,committee on the ,judiciary4 7,c7 ,three persons1 #a of whom shall be a person currently engaged in farming or ranching and #a of whom shall be a representative of organized labor1 shall be appointed by the ,speaker of the ,house of ,representatives1 after consultation with the ,chairs of the ,committee on ,agriculture and of the ,committee on the ,judiciary4 7,d7 ,three persons1 #a of whom shall be a person currently engaged in farming or ranching1 shall be appointed by the minority leader of the ,house of ,representatives1 after consultation with the ranking minority member of the ,committee on ,agriculture and of the ,committee on the ,judiciary4 7#b7 ,qualifications of members 7,a7 ,appointments ,persons who are appointed under paragraph 7#a7 shall be persons who-- 7i7 have experience in farming or ranching1 expertise in agricultural economics and antitrust1 or have other pertinent qualifications or experience relating to food and agriculture industries2 and 7ii7 are not officers or employees of the ,united ,states4 7,b7 ,other consideration ,in appointing ,commission members1 every effort shall be made to ensure that the members-- 7i7 are representative of a broad cross sector of agriculture and antitrust perspectives within the ,united ,states2 and 7ii7 provide fresh insights to analyzing the causes and impacts of concentration in agriculture industries and sectors4 7d7 ,period of appointment2 vacancies 7#a7 ,in general ,members shall be appointed not later than #fj days after the date of enactment of this ,act and the appointment shall be for the life of the ,commission4 7#b7 ,vacancies ,any vacancy in the ,commission shall not affect its powers1 but shall be filled in the same manner as the original appointment4 7e7 ,initial meeting ,not later than #cj days after the date on which all members of the ,commission have been appointed1 the ,commission shall hold its first meeting4 7f7 ,meetings ,the ,commission shall meet at the call of the ,chairperson4 7g7 ,chairperson and vice ,chairperson ,the members of the ,commission shall elect a chairperson and vice chairperson from among the members of the ,commission4 7h7 ,quorum ,a majority of the members of the ,commission shall constitute a quorum for the transaction of business4 7i7 ,voting ,each member of the ,commission shall be entitled to #a vote1 which shall be equal to the vote of every other member of the ,commission4 #bjb4 ,duties of the ,commission 7a7 ,in general ,the ,commission shall be responsible for examining the nature1 the causes1 and consequences of concentration in ,america's agricultural economy in the broadest possible terms4 7b7 ,issues ,to be addressed ,the study shall include an examination of the following matters3 7#a7 ,the nature and extent of concentration in the food and agricultural sector1 including food production1 manufacturing1 transportation1 processing1 distribution1 marketing1 retailing1 and farm inputs such as machinery1 fertilizer1 and seeds4 7#b7 ,current trends in concentration of the food and agricultural sector and what this sector is likely to look like in the near and longer term future4 7#c7 ,the effects of rising concentration on suppliers1 workers and farmers1 including independent and contract farmers1 with respect to-- 7,a7 competition in markets for their products and services2 7,b7 income and benefit levels2 7,c7 income distribution2 7,d7 income volatility2 7,e7 other material benefits2 and 7,f7 wages and benefits of employees4 7#d7 ,the impacts of this concentration upon rural communities1 rural economic development1 and the natural environment4 7#e7 ,the impacts of concentration in the seed industry on genetic diversity in farm fields and any related impacts on food security4 7#f7 ,the impacts of this concentration upon food shoppers1 including the reasons that low farm prices have not resulted in corresponding drops in supermarket prices4 7#g7 ,whether farming is approaching a scale that is larger than necessary from the standpoint of productivity4 7#h7 ,the effect of current laws and administrative practices in supporting and encouraging this concentration4 7#i7 ,whether the existing antitrust laws provide adequate safeguards against1 and remedies for1 the impacts of concentration upon family farms1 the communities they comprise1 and the food shoppers of this ,nation4 7#aj7 ,accurate and reliable data on the national and international markets shares of multinational agribusinesses1 and the portion of their sales attributable to exports4 7#aa7 ,barriers that inhibit entry of new competitors into markets for the processing of agricultural commodities1 such as the meat packing industry4 7#ab7 ,the extent to which developments1 such as packer ownership of livestock1 formula pricing1 marketing agreements1 production contracting1 forward contracting1 and vertical integration tend to give processors1 agribusinesses1 integrators1 and other buyers of agricultural commodities additional market power over farmers and suppliers in local markets4 7#ac7 ,the extent to which mergers cause wage suppression1 layoffs1 or reduced benefits to workers in the food and agricultural sector4 7#ad7 ,such related matters as the ,commission determines to be important4 #bjc4 ,final report 7a7 ,in general ,not later than #ab months after the date of the initial meeting of the ,commission1 the ,commission shall submit to the ,president and ,congress a final report which contains-- 7#a7 the findings and conclusions of the ,commission described in section #bjb2 and 7#b7 recommendations for addressing the problems identified as part of the ,commission's analysis4 7b7 ,separate views ,any member of the ,commission may submit additional findings and recommendations as part of the final report4 #bjd4 ,powers of ,commission 7a7 ,hearings ,the ,commission may hold such hearings1 sit and act at such times and places1 take such testimony1 and receive such evidence as the ,commission may find advisable to fulfill the requirements of this title4 ,the ,commission shall hold at least #a or more hearings in ,washington1 ,,dc1 and #d in different agriculture regions of the ,united ,states4 7b7 ,information from ,federal agencies ,the ,commission may secure directly from any ,federal department or agency such information as the ,commission considers necessary to carry out the provisions of this title4 ,upon request of the ,chairperson of the ,commission1 the head of such department or agency shall furnish such information to the ,commission4 7c7 ,postal services ,the ,commission may use the ,united ,states mails in the same manner and under the same conditions as other departments and agencies of the ,federal ,government4 #bje4 ,commission personnel matters 7a7 ,compensation of members ,each member of the ,commission shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level ,,iv of the ,executive ,schedule under section #ecae of title #e1 ,united ,states ,code1 for each day 7including travel time7 during which such member is engaged in the performance of the duties of the ,commission4 7b7 ,travel expenses ,the members of the ,commission shall be allowed travel expenses1 including per diem in lieu of subsistence1 at rates authorized for employees of agencies under subchapter ,i of chapter #eg of title #e1 ,united ,states ,code1 while away from their homes or regular places of business in the performance of services for the ,commission4 7c7 ,staff 7#a7 ,in general ,the ,chairperson of the ,commission may1 without regard to the civil service laws and regulations1 appoint and terminate an executive director and such other additional personnel as may be necessary to enable the ,commission to perform its duties4 ,the employment of an executive director shall be subject to confirmation by the ,commission4 7#b7 ,compensation ,the ,chairperson of the ,commission may fix the compensation of the executive director and other personnel without regard to the provisions of chapter #ea and subchapter ,,iii of chapter #ec of title #e1 ,united ,states ,code1 relating to classification of positions and ,general ,schedule pay rates1 except that the rate of pay for the executive director and other personnel may not exceed the rate payable for level ,v of the ,executive ,schedule under section #ecaf of such title4 7d7 ,detail of government employees ,any ,federal ,government employee shall be detailed to the ,commission without reimbursement1 and such detail shall be without interruption or loss of civil service status or privilege4 7e7 ,procurement of temporary and intermittent services ,the ,chairperson of the ,commission may procure temporary and intermittent services under section #caji7;b7 of title #e1 ,united ,states ,code1 at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level ,v of the ,executive ,schedule under section #ecaf of such title4 #bjf4 ,support services ,the ,administrator of the ,general ,services ,administration shall provide to the ,commission on a reimbursable basis such administrative support services as the ,commission may request4 #bjg4 ,authorization of appropriations ,there are authorized to be appropriated #b1jjj1jjj to the ,commission as required by this title to carry out the provisions of this title4