Last week, nearly 500 cattle producers from 14 states rallied in Omaha, Nebraska to denounce corporate control over cattle markets and to demand that the Trump administration do something to fix it.
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Will out-of-state investors own a sizable portion of Costco’s chicken production? One investor from North Carolina has applied for permits to build at least 132 chicken houses across nine locations in four Nebraska counties, according to public documents reviewed by Food & Power. Read Claire Kelloway's latest story on how one private equity fund could own a quarter of the chicken houses for Costco’s project in Nebraska.
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This week, livestock farmers and advocacy groups from across the country flew to Capitol Hill to share stories of exploitation by large meatpackers and call for greater farmer protections. At issue is a pending rule by the USDA that will clarify farmers’ grounds to sue meatpackers for retaliation, discrimination, and other abusive practices.
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On Tuesday, several Midwestern feedlot owners along with the Ranchers-Cattlemen Action Legal Fund (R-CALF) filed a class-action lawsuit alleging that dominant meatpackers conspired to depress cattle prices starting in 2015. The case argues that JBS, Tyson, Cargill, and National Beef strategically cut back on open market cattle bids, closed plants, and imported costly foreign cattle in order to force farmers to accept lower prices and manipulate spot market cattle values.
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Last month, the nation’s fourth-largest beef packer, National Beef, announced plans to take over Sysco-owned Iowa Premium, a regional packer focused on processing Black Angus steers for the Upper Midwest. National Beef is majority owned by Brazilian firm Marfrig.
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Many rural residents – including many farmers – do not want large concentrated animal feeding operations (CAFOs) in their communities, as evinced by a growing number of efforts to halt new CAFOs or sue them for environmental damage. But a newly popular corporate structure for hog production makes it increasingly difficult for residents to even determine who owns a CAFO let alone seek justice through civil suits.
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Earlier this month, a U.S. District Court judge struck down Iowa’s “ag-gag” law on the grounds that it violated the First Amendment. The ruling concludes a 2017 lawsuit brought against the state by a broad coalition of animal rights, environmental, and community advocacy groups including the ACLU and the Animal Legal Defense Fund.
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Last month, the USDA’s Agricultural Marketing Service announced that the world’s largest meatpacker, JBS, made inaccurate and non-transparent payments during early 2018 to ranchers at its Grand Island, Nebraska plant.
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Farmers and farm advocates in the Carolinas are beginning to tally the full scope of damages from Hurricane Florence. Over the course of three days, 3.4 million poultry and 5,500 pigs drowned, and countless acres of cotton, tobacco, peanuts, and sweet potatoes were damaged or ruined. As of Wednesday, the USDA estimates that North Carolina growers lost at least $1.1 billion worth of farm products.
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Virginia State Senator A. Benton Chafin last week introduced a bill that would significantly hike “checkoff” taxes that cattle growers in the state must pay. The move follows efforts in other states—including recently in Oklahoma—to increase or introduce state-level checkoff taxes, which are charged in addition to the $1 per head tax collected at the federal level. Many local ranchers oppose both the tax and the idea that it will be imposed by the legislature, saying the process effectively shuts independent cattle producers out of having a say in this sector specific levy.
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Tyson, the largest poultry company in the U.S., has failed at its second attempt to find a location for a new meatpacking facility in Kansas. Last week, an economic development group in Sedgwick County withdrew its bid for the $320 million plant. The decision came amidst an outpouring of public backlash, and follows Tyson’s squashed attempts earlier this year to build the same facility in Tonganoxie, Kansas.
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During President Donald Trump’s recent trip to China, Montana Senator Steve Daines (R-MT) negotiated a $300 million beef cattle deal between the Montana Stockgrowers Association and the Chinese e-retailer JD.com. The deal calls for the retailer to buy $200 million of cattle between 2018 and 2020, and invest $100 million in a new feedlot and packing plant in Montana. Some ranchers are concerned that this unusual deal will favor certain ranchers over others, and further concentrate power over the American livestock sector in the hands of Chinese companies.
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