Structure and the Marketplace

Date: 7/07
Position Number: IV-C
Expires: 3/08

Background: A competitive agricultural supply industry is essential to a profitable corn industry that allows the American farmer to be the world’s most efficient producer. It assures producers, in the long run, of better products and lower input prices. Similarly, competition among merchandisers and/or end users is vital. Without adequate competition, fair compensation to producers fails to exist.

Resolution/Position:

1. Support a review of anti-trust laws as they pertain to agriculture.
2. Encourage the federal government to help ensure competitive business practices among agricultural suppliers.
3. Support policies which encourage the availability of additional supplies of fertilizer, such as removing import tariffs on fertilizer.
4. Support investigation by proper agencies as to whether the concentration in agriculture is harmful to grain and livestock/poultry producers’ profitability.
5. Urge the Secretary of Agriculture and the Department of Justice to investigate all major transactions which have the potential to adversely affect agriculture’s profitability.
6. Support increased review within the Department of Justice and/or other appropriate agencies to focus on agricultural mergers, acquisitions, vertical integration and price transparency.
7. Support equitable agricultural contract negotiation law.
8. Encourage manufacturers and suppliers of farm inputs to price their products worldwide in a way that does not put U.S. producers at an unfair disadvantage.
9. Encourage a statistical examination of US grain and livestock/poultry pricing methods. Ag Commodity associations such as ASA, NPPC, USB, NCBA and Farm Bureau should assist in this national effort.
10. Support state warehousing and grain dealer laws. We do not support any federal regulation that would jeopardize state grain indemnity funds and/or state merchandising regulations. Farmers should have adequate notification of any proposed changes in federal warehousing and merchandising regulations before changes are enacted in statute or regulation.
11. Strongly encourage state warehouses and grain dealers, when given the choice between a state grain indemnity fund and a federal warehouse fund, to participate in that program which best serves its producers.
12. Requests USDA to improve the accuracy of supply reports.
13. Recommend that NCGA support legislation to require USDA monthly crop reports (August, September, October, November) be published or released by the 6th business day of the month.