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Farm Bill includes ban on meatpacker ownership of livestock


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WASHINGTON -- The farm bill approved Thursday by the Senate Agriculture Committee would ban meatpackers from owning cattle more than two weeks before slaughter, legislation advocated by Montana and Wyoming lawmakers.

The legislation is a priority for High Plains ranchers who own smaller operations and are hoping to stem competition from larger companies.

Supporters of the ban have long pushed for the law to prevent large meatpacking companies from having control over cattle for a long period of time. That way, the companies would be forced to pay current market prices for meat.

Advocates say meatpackers can manipulate the prices they pay for cattle with "captive supplies," or stock they own or control through contracts and marketing agreements. They argue that such control lets meatpackers time their purchases, allowing them to save money but also depress prices.

Sen. Mike Enzi, R-Wyo., may offer an additional amendment on the Senate floor that would require packers to have a fixed base price in their contracts and to put contracts up for bid in the open market. Enzi maintains this would prevent the large meatpacking companies from manipulating the base price after the point of sale.

Enzi and Wyoming Sen. John Barrasso, also a Republican, praised the Senate bill, noting that it also includes a provision that would allow some small meat plants to sell their products across state lines and language that would require country-of-origin labels on meats and other foods.

The larger bill will also include a $5 billion agricultural disaster aid program authored by Sen. Max Baucus, D-Mont., and approved by the Senate Finance Committee earlier this month. Baucus is the chairman of that committee.

The disaster program has been a top priority for Western farmers and ranchers, who have suffered many losses due to drought in recent years.

Other Montana and Wyoming priorities included in the bill:

-- A Baucus amendment that aims to prevent the closure of Farm Service Agency offices.

-- Increased funding for wheat and barley growers.

-- A program to sell excess sugar to ethanol producers and increase beet sugar storage and sugar loan rates.

-- Increased spending for some conservation programs.

"Montana farmers and ranchers will come out very well in this bill," Baucus said. They should be pleased."

Montana Sen. Jon Tester, an organic farmer, also praised the bill.

"It's about making sure millions of farmers and ranchers continue to be the backbone of America," the Democrat said.

The House passed a similar version of the legislation in July.


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