ALTAMONT, Ill. — The threat posed to family farmers by corporate concentration in agriculture was a central theme at the 64th Illinois Farmers Union state convention held at the Carriage House Event Center in Altamont last weekend.
Joe Maxwell, executive director of Family Farm Action delivered a keynote address in which he drew parallels between the situation facing family farmers today and the environment farmers faced more than 120 years ago, when companies like Armour and Swift controlled 45% of America’s meat industry.
Family farm advocate and executive director of Family Farm Action, Joe Maxwell and Illinois Farmers Union president, Norbert Brauer.“Once new regulation busted the meat trusts, the marketplace rapidly showed less and less concentration. The late 1970s saw a century-low point in market concentration, with meat packers controlling around 20% of the market.”
In the 1980s, however, the Packers and Stockyards Act was repealed, with the Glass-Steagall Act reversed in the early 1990s, heralding a new period of deregulation and consolidation.
“Fast-forward to today and control of the American agricultural marketplace is almost completely in the hands of a few large corporations. This monopolization of agriculture has led to declining prices, the loss of family farms and devastation of rural communities.”
Maxwell added that abuses are likely in markets with consolidation levels of over 45% – a level where markets are considered highly-concentrated.
“Today, the corn marketplace is at a concentration level of 80%, the soybean marketplace is at 70%, beef is at 84%, hogs at 60% and chicken and turkey are both above 55%. Whichever way you look at it, neither the farmer, nor the consumer is getting a good deal.”
The eminent merger of ADM and Bunge, Maxwell said, will lead to even greater consolidation and will bring more pressure to bear on America’s remaining family farmers.
Jim Schultz, founder of Open Prairie and well-known Illinois business personality, spoke about the need to create opportunities in the state by leveraging its assets in rail, road and river transportation, as well as data infrastructure, workforce and global accessibility.
“Illinois has enormous potential. We are the only state serviced by all seven class-one freight railroads. As a ground transportation hub, Illinois can service 75% of the United States within 48 hours. In addition the Illinois airport system is one of the busiest in the world and all North American destinations can be reached within four hours flying time.”
Schultz focused on rural Illinois, also, pointing out that although there were significant challenges with regard to infrastructure and employment, rural re-investment held significant opportunities in production and processing, agriculture and logistics.
National Farmers Union had strong representation at the convention, with NFU vice-president and Kansas Farmers Union president, Donn Teske and NFU Treasurer and Nebraska Farmers Union president, John Hansen in attendance.
“Illinois is in a remarkable position of influence with access to 18 senators. It is crucial that Illinois’ family farmers make their voices heard politically on issues such as rural development, market consolidation, parity, check-off spending and the upcoming Farm Bill,” said Hansen.
He added: “Farmers Union wants a Farm Bill that works. Farm income has dropped by 48% since 2013 – a deficit of $63.4 billion. Farmers Union would like to see adequate funding in the Bill as well as a focus on beginning farmers, dairy, ARC/PLC, renewables, expanding broadband, conservation and the SNAPprogram.”
Hansen echoed both Maxwell and Schultz in pointing out that the loss of family farms is a cause of grave concern. He added that creating an environment where beginning farmers could prosper was almost impossible, considering the state of the marketplace and its economic and social repercussions.
Other topics Hansen touched on included trade, health care and biofuels.
Farm families and their importance to rural America was on National Farmers Union vice-president Teske’s list of priorities.
“Our family farmers and the communities they live in is why Farmers Union exists. Our work is to ensure that we continue our legacy as farmers and that we work to create a future for family farming in our country – it is our heritage.”
State Senator Sam McCann was also in attendance and spoke about the importance of unity in times of deep political division. “We must choose patriotism over partisanship,” he said.
McCann also spoke about the importance of rural communities and how their continued economic survival needed to be a priority.
Following the speakers, members set to work endorsing policy positions which for this year include the Farm Bill, biofuels, CAFOs and crop loan-rate increases.
Board and officer elections were also held, with Norbert Brauer of Altamont being re-elected to lead the organization. Jerry Lowery of Clark Co. is the newly-elected vice-president, with Wendel Lutz (Champaign Co.) continuing as secretary/treasurer.
Lynn Tappendorf (Fayette Co.), Dave Ramsey (Sangamon Co.), Jim Francis (Jo Daviess Co.), Bernard Hammel (Champaign Co.), Rick Duvall (Cook Co.), Donald Bauer (Effingham Co.) and Alan Zumbahlen (Clay Co.) were all re-elected to the board.
“This was a good convention. We had excellent speakers who I believe spoke plainly and truthfully about the challenges facing farmers – both new and established – in Illinois today. We cannot pretend that there is nothing wrong. Our input costs are astronomical, our prices are the lowest they have been in many decades and our rural communities are bearing the brunt of it,” said Brauer.
“We have to start asking ourselves why we allow these market forces to treat farmers the way they do. Why are we at the mercy of enormous corporations that control prices from input to market? Family farmers ought not to be complacent – they have a voice and they should ensure that the organizations they support are working for them, not against them.”
— Illinois Farmers Union
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