WASHINGTON, D.C. – The Department of Justice is committed to seeking justice for American livestock producers.
“If we are not fighting to protect our family ranchers and farmers, what are we doing?,” asked Department of Justice Assistant Attorney General for Antitrust, Jonathan Kanter when he met with family ranchers and farmers on Capitol Hill to give them an update on the on-going investigation into the meat packing industry during the 2024 National Farmers Union D.C. Fly-In.
“We have done a lot, but we need to do more,” Kanter said. “Agriculture and ranching and farming have been a huge priority for us, and I am here to say it will remain a huge priority for us going forward and that is because the consequences of concentration in agriculture ripple out – it affects everything.”
Kanter went on to share that through conversations with family ranchers, farmers and small, rural business owners he has a clear understanding of the impact financial struggles in agriculture have on rural communities.
“Ranchers and farmers face powerful monopolies everywhere. They can’t catch a break, and thousands everywhere are forced to give up and shut down a family ranch or farm,” Kanter said. “Those losses start to add up and each one is truly the American Dream disappearing. They spiral. Small towns struggle to survive. Schools shrink. Independent pharmacies lose buyers. Corner stores vanish. Hospitals close and our communities suffer. The destruction of the local family farm leads to the destruction of our rural communities.
“If we want thriving rural economies…then we need thriving family ranches and farms,” Kanter said.
Kanter went on to discuss the actions the Department of Justice (DOJ) has implemented to back his words.
Actions speak louder than words
- In 2023 the DOJ sued Agri Stats for price-fixing while operating extensive information exchanges among meat processors
- DOJ now has an enforcement partnership with USDA to enforce Packers & Stockyards Act
- 2024 DOJ expands Chicago DOJ team of attorneys dedicated to enforcing laws related to agriculture
“If we are not going to fight for fairness, if we are not going to fight for competition for our family ranchers and farmers, we might as well pack up and go home,” Kanter said. “So, not only are we going to do it, but we are going to do it better, going to do it bigger and going to do it stronger.”
South Dakota Cattle Producers in the Room
Kanter first met with Farmers Union members during the 2022 D.C. Fly-In. National Farmers Union organized the meeting and because space was limited, they prioritized attendance to livestock producers.
The meeting was scheduled to be brief – five minutes to be exact – National Farmers Union President Rob Larew recounted in his introduction of Kanter, but after a few cattle producers shared their testimonies of how packer concentration impacted their lives and livelihoods, Kanter cleared his schedule. Instead of the five minutes, the initial meeting lasted two hours.
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“I was in the room for that first meeting two years ago and the work the Department of Justice has been doing for cattle producers since that time is impressive,” said Wessington Springs cattle producer, Scott Kolousek. Kolousek also serves as a board member for South Dakota Farmers Union. “I am optimistic that the DOJ will get something done to protect us from antitrust issues with the packers.”
Getting something done to protect against antitrust violations among packers is important to American cattle producers, explained Zane Reis, a fifth-generation cattle producer.
“They control the markets and we are at their mercy. And this is not just a cattle producer problem – it impacts consumers too,” Reis said. “Let me give you an example. In 2014 our calves sold for $1,600 right off the cow. Meat prices in the grocery store went up too. The next year we got $750 for our calves, right off the cow. But guess what, the packers charged the retailers the same amount and the price for meat in the grocery store remained high.”
Zane raises cattle with his wife, Angie, his siblings and parents, David and Brenda Reis. David also attended the D.C. Fly-In Capitol Hill meeting and heard the DOJ update. In 2023, David Reis was among a group of South Dakota cattle producers SDFU asked to travel to D.C. to meet with DOJ staff and policymakers to discuss packer concentration.
And during the 2023 SDFU State Convention, Michael Kades, Deputy Assistant Attorney General in the Antitrust Division at the DOJ traveled to South Dakota and gave an update. During his trip to South Dakota, Kades collaborated with SDFU to attend a livestock auction and tour feedlot operations.
As David considers his children and grandchildren’s interest in continuing the family ranch and tradition of cattle production in South Dakota, he is hopeful that the DOJ’s efforts will mitigate packer concentration and create fair livestock markets for producers and consumers.
“I was very impressed that they are adding another 200 attorneys to focus on this issue. Because from what we were told, the packers have a large group of lobbyist working for them,” David said. “Cattle producers need fair markets. You know, when I was a young producer in the 70’s, the rancher got about 34 percent of what beef was selling for in the grocery store. Today, we get maybe 15 percent of what it is selling for in the grocery store. And our input costs have gone up significantly since the 70’s.”
