USDA announced several actions today to promote fair and competitive markets, including new rulemaking steps under the Packers and Stockyards Act and increased access to seed germplasm.
At a Farmers and Ranchers in Action event at the White House, Agriculture Secretary Tom Vilsack laid out the actions, which are in line with President Joe Biden’s executive order promoting competition in the U.S. economy.
These steps include increasing researcher access to seed germplasm, which is used by plant breeders to create new, resilient varieties. Specifically, the agency sent a letter to the U.S. Patent and Trademark Office seeking more clarity on disclosure requirements for utility patents on seeds. This will help researchers better understand the scope of patent rights and conduct the necessary studies.
The agency also released additional guidance on using germplasm developed by federal funding and "observational uses of protected germplasm in the context of patent law."
"The ability to observe and understand patented inventions is necessary for federal scientists to pursue critical research and to innovate without fear of infringement," USDA said in a release.
USDA also published an interim report today that examines access to retail for processors and producers through the lens of beef markets. The report, conducted by the Agricultural Marketing Service, found increasing market concentration nationally and regionally among the top four packers, distributors and retailers.
The study also found onerous requirements and fees that dominant firms may now impose and pricing practices that block access to markets for smaller producers and processors, Vilsack said.
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Speaking at the White House event, Vilsack said USDA has not fully enforced its fair and competitive practice laws over the last three years, which has led to market consolidation and the closure of independent retail, processing and production operations.
The report's findings may spur additional investigation, with the intention of publishing an advance notice of proposed rulemaking on potential steps to open up these markets.
Finally, USDA issued an advance notice of proposed rulemaking under the Packers and Stockyards Act, seeking comments on possible interventions to set new benchmarks for Alternative Marketing Agreement base prices.
“Ultimately, this suite of initiatives are really about promoting choice, about lowering costs for farmers, about a food system that's more resilient and ultimately lower cost for consumers,” Vilsack said.
Vilsack also addressed key issues plaguing the agriculture industry, including the impact on farmers of Hurricanes Helene and Milton, which is fast approaching Tampa, Florida. He highlighted the steps the agency has taken, such as using waivers and emergency procedures to expedite recovery efforts. Additionally, he said that payments will go out to impacted farmers as early as November through the wind and hurricane coverage.
Several farm groups and representatives from Pennsylvania, Michigan, Maine and Kansas state agriculture departments attended the White House event. Groups like the National Corn Growers Association, American Farm Bureau and Farm Action previously said they planned to press the administration on tax credits for sustainable aviation fuel, completion of a five-year farm bill and more.
Some producer groups, however, were not invited. The National Cattlemen’s Beef Association criticized the administration for holding a “pep rally” rather than more directly addressing the recent hurricanes. Had they been invited, NCBA would have raised other issues like disaster relief, regulatory overreach and approval of South American beef imports, said Ethan Lane, the association's vice president of government affairs, in a statement.
“This event makes clear what cattle producers have known for quite some time: when it comes to agriculture, this administration has prioritized politics over policy that supports cattle producers,” Lane said.
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