COMMENTARY
Defending the cornerstone of cooperation
Editor’s note: Guest commentary for this
issue was written by Jean-Mari Peltier,
president and CEO of the National
Council of Farmer Cooperatives (NCFC).
It is based on a statement she submitted
in July to the Antitrust Modernization
Commission (AMC). The opinions
expressed are her own, and do not necessarily
reflect those of USDA or its employees.
The AMC, created by Congress to
review U.S. antitrust laws, announced this
spring that it would review the limited
antitrust immunity offered by the Capper-
Volstead Act, among other agriculture-related
statutes.
The Capper-Volstead Act is the cornerstone
of farmer cooperative law and
enables farmers to join together to
cooperatively process and market their
products. Without Capper-Volstead,
America’s farmers and ranchers would
lack any real bargaining power in an
economy increasingly dominated by a
few large buyers.
Farmer cooperatives enable agricultural
producers to:
- Derive more of their income from
the marketplace;
- Take advantage of value-added
opportunities;
- Better manage the risk inherent in
production agriculture and
- Compete more effectively in the
global marketplace.
Congress has a long history of recognizing
the need of farmers to be able
to form cooperatives, and has
expressed its desire to promote these
associations of producers through the
Clayton Act, the Capper-Volstead Act,
the Agricultural Marketing Act and the
Agricultural Marketing Agreement
Act. Such statutes are also vitally
important for the benefit of producers
as well as consumers.
There is no need to repeal or sunset
the limited antitrust immunity in the
Capper-Volstead Act because effective
limits on its application already exist.
For instance, the Act already gives the
secretary of agriculture authority to
review and protect the interests of all
parties, including consumers.
Farmer cooperatives and their
members form a cornerstone of U.S.
agriculture and rural America. They
improve the economic well-being of
their members, provide jobs and leadership
in their local communities and
help meet the food and fiber needs of
consumers both in the United States
and around the world.
NCFC strongly urges that the AMC
recommend that the limited antitrust
immunities and the historical protections
for farmers found in the Capper-
Volstead Act be maintained. We are far
from alone in taking this stand. Other
farm organizations that have offered
testimony in support of Capper-Volstead include: the American Farm
Bureau Federation, National Milk
Producers Federation, Farm Credit
Council, National Farmers Union,
National Grange and 16 state and
regional farmer cooperative councils.
Additionally, the co-chairs of the
Congressional Farmer Cooperative
Caucus —Senator Larry Craig (R-ID),
Senator Blanche Lincoln (D-AR),
Representative Sam Graves (R-MO),
Representative Earl Pomeroy (D-ND)
— have sent a letter to the Commission
voicing strong support of maintaining
the historical protections provided
by the Capper-Volstead Act.
NCFC has also joined the Joint
Export Trade Alliance in support of
the Export Trading Company Act and
the Webb-Pomerene Act, two other
provisions singled out by the Commission
for study.
The AMC has scheduled a hearing
on exemptions and immunities, which
include both Capper-Volstead and the
Ag Marketing Act, for Thursday,
November 3. Exact time and location
has yet to be announced at the time of
this writing. Additional information
can be found on the AMC Web site at:
http://www.amc.gov. Comments can be
sent to either comments@amc.gov or
by mail to Antitrust Modernization
Commission, 1120 G St., NW, Suite
810, Washington, D.C. 20005.
Capper-Volstead has played a critical
role in making the United States
the world’s leading agricultural nation,
and will continue to pay dividends for
all Americans in the years ahead.
— Jean-Mari Peltier,
President & CEO
National Council of
Farmer Cooperatives
NCFC is a national association representing
America’s farmer cooperatives. There
are nearly 3,000 farmer cooperatives
across the United Sates whose members
include a majority of our nation’s more
than 2 million farmers, ranchers and
growers.
