National Council of Farmer Cooperatives
Representing the Business Interests of Agriculture

Washington, DC – Immediately following a hearing by the House Judiciary Committee Task Force on Antitrust, the National Council of Farmer Cooperatives (NCFC) outlined the destructive consequences for American agriculture that would result from the Antitrust Modernization Commission's report. If undertaken by the Congress, these recommendations would devastate the ability of America's farmers and ranchers to control their destiny in the marketplace.

"Farmer cooperatives offer the best opportunity for America to realize the farmer-focused ideal of an enduring, competitive agricultural industry," said NCFC President Jean-Mari Peltier. "Unfortunately, the Commission's recommendations would cripple the ability of farmers and ranchers to cooperatively market their products or form new cooperatives to compete in a rapidly consolidating marketplace dominated by a few, very large buyers."

In testimony before the Task Force, Commission Chair Deborah Garza outlined further the commission's recommendations that all antitrust immunities and exemptions be reviewed, severely limited, and terminated after a set period of time. This would also include the Capper-Volstead Act, which gives limited antitrust immunity to farmers and ranchers forming cooperatives.

In wiping out Capper-Volstead, the Commission recommends making it illegal for two or more farmers to do something as simple as talk about price or terms of sale.

"The Capper-Volstead Act gives America's farmers and ranchers the ability to take their economic fate into their own hands, and to combat potential abuse and exploitation when marketing their products," Peltier concluded. "The Commission's proposal has the potential to destroy a century's worth of hard work by millions of farmers and ranchers to build competitive farmer-owned and –controlled cooperatives."

NCFC is the national association representing America's farmer cooperatives. There are nearly 3,000 farmer cooperatives across the U.S. whose members include a majority of our nation's more than 2 million farmers, ranchers and growers. These farmer cooperative businesses handle, process, and market agricultural commodities and related products; furnish farm supplies; and provide credit and associated financial services. Earnings from these activities are returned to their members on a patronage basis. Farmer cooperatives also provide jobs for nearly 250,000 Americans, many in rural areas, with a combined payroll of over $8 billion.