R-<strong>CALF</strong> United S<strong>to</strong>ckgrowers <strong>of</strong> America P.O. Box 30715 Billings, MT 59107 Fax: 406-252-3176 Phone: 406-252-2516 Website: www.r-calfusa.com E-mail: r-calfusa@r-calfusa.com December 31, 2009 Legal Policy Section Antitrust Division U.S. <strong>Department</strong> <strong>of</strong> <strong>Justice</strong> 450 5 th Street, NW., Suite 11700 Washing<strong>to</strong>n, D.C. 20001 Sent Via Electronic Mail: agriculturalworkshops@usdoj.gov Re: R-<strong>CALF</strong> USA <strong>Comments</strong> on Agriculture and Antitrust Enforcement Issues in Our 21st Century Economy Dear Sirs and Madams: The Ranchers-Cattlemen Action Legal Fund, United S<strong>to</strong>ckgrowers <strong>of</strong> America (R-<strong>CALF</strong> USA) appreciates this opportunity <strong>to</strong> submit comments <strong>to</strong> <strong>the</strong> U.S. <strong>Department</strong> <strong>of</strong> <strong>Justice</strong>, Antitrust Division (<strong>the</strong> <strong>Justice</strong> <strong>Department</strong>) and <strong>the</strong> U.S. <strong>Department</strong> <strong>of</strong> Agriculture (USDA) <strong>regarding</strong> <strong>the</strong> agencies’ joint notice <strong>of</strong> public hearing and opportunity <strong>to</strong> comment on Agriculture and Antitrust Enforcement Issues in Our 21st Century published at 74 Fed. Reg. 43725, 726 (Aug. 27, 2009). R-<strong>CALF</strong> USA is a national nonpr<strong>of</strong>it association that represents thousands <strong>of</strong> U.S. cattle farmers and ranchers in 46 states. R-<strong>CALF</strong> USA works <strong>to</strong> sustain <strong>the</strong> pr<strong>of</strong>itability and viability <strong>of</strong> <strong>the</strong> U.S. cattle industry, a vital component <strong>of</strong> U.S. agriculture. R-<strong>CALF</strong> USA’s membership consists primarily <strong>of</strong> cow/calf producers, cattle backgrounders and feedlot owners. Various main-street businesses are associate members <strong>of</strong> R-<strong>CALF</strong> USA. What likely is obvious <strong>to</strong> <strong>the</strong> <strong>Justice</strong> <strong>Department</strong> and USDA is that <strong>the</strong> U.S. cattle industry <strong>of</strong> <strong>the</strong> 21st Century has undergone pr<strong>of</strong>ound changes, which began in <strong>the</strong> latter part <strong>of</strong> <strong>the</strong> 20th Century and affected three key industry characteristics: industry structure, industry participants and industry productivity. What may be less obvious are <strong>the</strong> indices <strong>of</strong> systemic market failure now manifest in <strong>the</strong> U.S. cattle industry <strong>of</strong> <strong>the</strong> 21st Century and <strong>the</strong> fac<strong>to</strong>rs that contributed, and which continue <strong>to</strong> contribute, <strong>to</strong> that manifestation. In <strong>the</strong>se comments, R-<strong>CALF</strong> USA will describe: 1) <strong>the</strong> current state <strong>of</strong> <strong>the</strong> U.S. cattle industry: its current structure, participants and productivity; 2) <strong>the</strong> unique vulnerabilities <strong>of</strong> <strong>the</strong> U.S. cattle industry that make it particularly susceptible <strong>to</strong> monopsony power and exploitation; 3) examples <strong>of</strong> market failure that evince <strong>the</strong> exercise <strong>of</strong> monopsony power and exploitation; 4) examples <strong>of</strong> known and suspected practices within <strong>the</strong> industry that constitute anticompetitive behavior and/or violations <strong>of</strong> antitrust statutes; and, 5) recommendations on what action is needed <strong>to</strong> revitalize <strong>the</strong> ailing U.S. cattle industry.
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