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States look to join ag antitrust fightHELENA, Mont. (AP)--Montana is leading a 16-state effort to save small farmers and ranchers by urging the federal government to use antitrust weapons and enlist the states' help to fight increasing consolidation in agriculture. The feds are listening. Attorney General Eric Holder and Secretary of Agriculture Tom Vilsack say a series of workshops on competition in the industry is an unprecedented act of cooperation between their agencies. But they also say it's not clear what actions will come from the hearings, which are examining competition in U.S. dairy, seed, meatpacking and crop production. Montana Attorney General Steve Bullock, who is spearheading the agricultural states' effort, said too much consolidation has resulted in unfair trade practices that tip the balance against farmers and ranchers. With Justice Department and USDA cooperation, he said, "This will be a watershed moment to have actual enforcement capabilities.'' Besides Montana, attorneys general involved in the effort are from Delaware, Iowa, Louisiana, Maine, Maryland, Mississippi, New Hampshire, New Mexico, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Vermont and West Virginia. Bullock and the others are calling for a halt of any further consolidation or integration in the agricultural sector without a critical review coordinated with the states. They submitted recommendations to federal officials on what needs to be done. Among them: --Study the seed industry's concentration and property rights claimed to see whether there is any way to change existing laws. Five companies own the most commercially successful trait technologies for crops, and those transgenic seeds account for 80 percent of corn planted in the United States, 92 percent of soybeans and 86 percent of cotton. --Repeal antitrust exemptions for railroads that have been in place since the 1980s and make transportation more accessible to small producers. --Explore how states can help enforce antitrust laws under the Packers and Stockyard Act, passed in 1921 to ensure fair competition and fair trade practices in the marketing of livestock, meat and poultry. States have not historically brought cases under that federal law, and the attorneys general say cooperation could better regulate an increasingly concentrated buyers market in the livestock industry. --Review the antitrust immunities given to certain dairy cooperatives and the laws governing how milk is marketed to make sure they still protect farmers and don't become a vehicle for large entities to exclude smaller farmers from the market. Smaller farmers and ranchers generally agree that fewer suppliers, shippers and buyers resulting from consolidation can lead to antitrust practices. In Montana, agricultural consolidation has reduced the number of grain elevators in the state from nearly 200 in 1984 to fewer than 50 today, Bullock said. The four largest packers process 85 percent of the nation's beef, while the four largest pork packers process about 65 percent of the nation's pork, he said. Jan French, a cattle rancher from Hobson, Mont., and head of the state's Livestock Board, welcomed the state's involvement.
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