Food Fight

A Joint Mission: USDA and State AGs Collaborate to Foster Market Competition

In a landmark initiative to fortify competition and consumer protection in the food and agricultural markets, the U.S. Department of Agriculture (USDA) has collaborated with bipartisan attorneys general from 31 states and the District of Columbia. This partnership, announced at the White House Competition Council meeting, marks a significant stride in addressing issues like price inflation and limited consumer choices in various sectors, including grocery, meat, and poultry processing.

Agriculture Secretary Tom Vilsack, during the meeting, which also commemorated the second anniversary of President Biden’s Executive Order on Promoting Competition, emphasized the Biden-Harris administration’s commitment to tackling corporate consolidation. The negative impacts of such consolidation, such as unfair competition and escalated prices, are being targeted by this new alliance. Vilsack noted, “This partnership between USDA and states, in concert with federal authorities, aims to foster a more robust and competitive agricultural sector, ensuring fair and competitive markets, a key pillar of the American economy.”

Under this new Agricultural Competition Partnership, the USDA intends to merge state and federal expertise and insights to address anticompetitive structures in agriculture and related industries. The focus areas include countering anticompetitive market practices, addressing price gouging, enhancing choices for consumers and producers, and tackling conflicts of interest and misuse of intellectual property.

This initiative will significantly boost the capacity of state attorneys general to conduct thorough assessments of competition and consumer issues. It aims to create enhanced coordination between federal and state agriculture and competition authorities and establish new independent research programs to aid future cases.

The partnership is supported by a $15 million USDA investment, primarily allocated to the Center for State Enforcement of Antitrust and Consumer Protection Laws, a neutral entity aiding states in cooperative efforts. This includes the formation of oversight and project selection advisory committees composed of participating state attorney general offices.

The USDA is also inviting all states to join this partnership, with the opportunity to participate or withdraw at any stage. Only participating partners will be eligible for funding or committee positions.

In addition to this partnership, Secretary Vilsack at the White House Competition Council meeting also shed light on USDA’s other initiatives. These include investments to boost independent meat and poultry processing capacity, expand market opportunities for farmers, and support rural workforce growth. He also discussed the USDA’s planned rulemakings under the Packers and Stockyards Act to shield farmers and ranchers from exploitation.

Further, the USDA announced the formal establishment of the Farmer Seed Liaison initiative. This initiative, aimed at enhancing transparency and reducing complexity for growers and plant breeders in the seed system, was launched following the report, “More and Better Choices for Farmers: Promoting Fair Competition and Innovation in Seeds and Other Agricultural Inputs.” This coordinated team of USDA staff and academic cooperators is focused on developing strategies to connect farmers with various stakeholders and federal agencies.

As part of the Farmer Seed Liaison efforts, the USDA has also introduced a new web resource to provide easier access to the U.S. Patent and Trademark Office’s pending plant patents and plant breeding-related utility patents. This online tool, offering automated searches for common crop types, aims to enhance transparency in the patent system for farmers. Along with these resources, the Seed Liaison team will work to ensure farmer representation in the patent process and enforce the Federal Seed Act, addressing seeds competition concerns.

This multi-faceted approach by the USDA, in partnership with state attorneys general and through initiatives like the Farmer Seed Liaison, represents a significant step towards a more competitive, fair, and resilient agricultural sector in the United States.

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