March 12, 2002

The Honorable Gary Ackerman
U.S. House of Representatives
Washington, DC 20515
Fax: (202) 225-1589

Dear Representative Ackerman:

We, the undersigned agricultural processors and organizations, are alarmed by several anti-agribusiness policies being discussed in Congress. Our businesses are essential to the transformation of U.S. farm goods into consumer products at home and abroad. We also identify and transmit important consumer demand signals back to production agriculture. Policies restricting our ability to process farm goods efficiently, or to respond to consumer demand signals, hurt not only our businesses, but also farmers and ranchers, the rural economy of this country and, ultimately, consumers.

Recently, several bills have been introduced in the Senate and House that would further restrict our ability to compete globally, operate efficiently and respond to consumer demand. We are writing to urge you to oppose these bills and, where possible, to remove these policies from existing bills.

For example, the Senate farm bill contains a provision that would bar meatpackers from owning or controlling their livestock supplies. The House farm bill contains no similar provision. However, some House members have recently introduced bills to ban packer ownership and control of livestock, and to create new, separate antitrust requirements for processors of livestock, poultry, wheat, corn and soybeans. We urge you to strike these policies from the farm bill and further to oppose these policies in any other legislation.

Additionally, a provision has been inserted in the Senate farm bill, which would subject producers to higher costs for dispute resolution. The provision would allow some farmers and agribusinesses to ignore arbitration as a method of dispute resolution in contracts they initiate or renew after the bill becomes law. The net effect is to create financial uncertainty for both parties, as the method and costs of contract dispute resolution are undetermined. Currently, producers who have an arbitration clause in their production contract know what their potential costs will be if a dispute arises. Disputes can be settled in weeks under arbitration rules, rather than the years it may take to move the case through the court system. We strongly urge you to seek elimination of this arbitration amendment from the final farm bill.

Competition in global agribusiness has never been stronger than it is today. New restrictions on U.S. farmers and agribusiness processors not only are unnecessary, but they hinder our ability to operate efficiently and to respond to market signals worldwide. They disadvantage U.S. agriculture, thereby helping our foreign competitors. Please resist these efforts to make U.S. agriculture less competitive.

Sincerely,

Agribusiness Council of Indiana
American Cotton Shippers Association
American Feed Industry Association
American Frozen Food Institute
American Meat Institute
American Seed Trade Association
Animal Health Institute
Cargill, Inc.
Clougherty Packing Company
ConAgra Foods, Inc.
ContiGroup Companies, Inc.
Food Marketing Institute
Grain and Feed Association of Illinois
Grocery Manufacturers of America
Hatfield Quality Meats
Louis Dreyfus Corporation
Michigan Agri-Business Association
National Association of Manufacturers
National Chicken Council
National Food Processors Association
National Grain and Feed Association
National Grain Trade Council
National Renderers Association
National Turkey Federation
North American Millers' Association
Pacific Northwest Grain and Feed Association
Premium Standard Farms
Seaboard Corporation
Smithfield Foods, Inc.
Texas Grain and Feed Association
Tyson Foods, Inc.
United Egg Association
U.S. Chamber of Commerce