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Friday, July 8, 2022
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Opinion
Editor & Publisher
Managing Editor
Joe Beach
Carl Sampson
opinions@capitalpress.com | CapitalPress.com/opinion
Our View
Let’s settle the question of whether
there’s a thumb on the scale
S
ysco, a Texas-based compa-
ny that distributes food to
restaurants, hotels and other
facilities, has filed a federal lawsuit
alleging violations of antitrust laws
by Cargill, JBS, Tyson and National
Beef.
If the suit moves forward, this
seems like another good opportunity
to either prove or put to rest allega-
tions that have roiled the livestock
and processing industries for years.
At issue is whether four large
companies are collectively using
their place between producers and
consumers and their market dom-
ination to manipulate supply and
prices to their advantage both up and
downstream.
According to the lawsuit, a for-
mer quality assurance officer at a
JBS facility “has confirmed the exis-
tence of a conspiracy” among the
Capital Press File
A new lawsuit accuses the four largest
beef processors of setting prices in vio-
lation of federal antitrust laws.
beef packers, which is corroborated
by statistics that show “industry-wide
slaughter and capacity reductions.”
The four meat packers collectively
generate about 80% of the U.S. beef
supply and control an even higher
proportion of the domestic cat-
tle market, as well as the associated
“supply and distribution chain,” the
complaint said.
By exploiting their market power,
the companies have “created sur-
pluses in the cattle market and short-
ages in the wholesale beef market,”
artificially raising their profit margins
higher than they can achieve under
competitive conditions, the complaint
said.
“United by their conspiracy, Oper-
ating Defendants were confident that
none of them would break ranks and
disproportionately expand their beef
production to satisfy unmet demand,”
the plaintiff claims. “Armed with
this assurance, Operating Defendants
improved their meat margins by
achieving and sustaining an unprec-
edented gap between cattle and beef
prices.”
The defendants have not yet
commented.
Outflanking
fire with
common
sense
A
Our View
USDA
Legislation in Congress would block companies and individuals based in China, Russia, Iran and North Korea
from buying U.S. farmland.
Ban U.S. farmland
sales to these nations
A
proposal to protect a valuable strategic
asset from some foreign-based actors
deserves the full support of Congress
and the Biden administration.
Rep. Dan Newhouse, R-Wash., has offered leg-
islation in Congress to prevent companies or indi-
viduals based in China, Russia, Iran and North
Korea from buying U.S. farmland. The House
Appropriations Committee recently added it to a
funding bill on a unanimous voice vote.
Similar measures have passed the House
before, but the Senate has failed to pass them.
We all know the contempt with which the Com-
munist Chinese government holds U.S. technol-
ogy and patents. We also have seen the contempt
the government has for human rights. And we
have seen the lengths to which the government
will go to deny its responsibilities in the world-
wide spread of COVID-19.
Now those same actors have their eyes on U.S.
farmland, the most important of assets.
The stated policy of every U.S. administration
has been to protect the ability of U.S. farmers to
feed the nation and its friends around the globe.
This policy has resulted in plentiful and afford-
able food. All a person has to do is walk through
any grocery store and the success of that policy is
obvious.
Allowing Chinese companies to buy into that
policy makes no sense. Already, a Chinese gov-
ernment-backed company owns Smithfield Foods,
the world’s largest pork producer and processor.
Another lawsuit — filed in 2020
by a group representing ranchers,
food processors and consumers —
alleges much the same thing, and is
moving through a federal court in
Minnesota.
At the behest of then-President
Donald Trump, in 2020 the U.S.
Department of Justice began an
investigation of the industry. Lead-
ership of the department has since
changed to the Biden administration.
The investigation is ongoing, and no
update has been offered.
Whenever a large part of the mar-
ket is controlled by a handful of com-
panies, it raises suspicions.
We believe that, to have a free
market, all sides must operate on a
level playing field and with full price
transparency. It would serve the pub-
lic good to know whether or not
there’s a thumb on the scale.
The Chinese paid $4.7 billion — 30% more than
the market value of the company — in 2013.
Since then, a lot has happened between China
and the U.S. China continues to threaten to take
over Taiwan, an independent nation off the coast
of the mainland, apparently hoping to emulate
Russia’s invasion of Crimea and Ukraine.
In each instance, China has put the interests of
itself over those of everyone else.
Then there’s Russia, where Vladimir Putin
is taking over independent foreign nations. He
even threatened the president of Finland after that
nation opted to join NATO, calling the move “a
mistake.”
At the same time, Putin has trashed Russia’s
economy. Note that the Russian ruble is worth less
than 2 pennies.
Iran and North Korea, both sworn enemies of
the U.S., continue to seek nuclear arsenals and the
intercontinental missiles to deliver them.
Considering these factors, Congress should
block any efforts of companies in any way asso-
ciated with China, Russia, Iran and North Korea
from ever buying U.S. farmland.
Chinese companies or individuals already own
352,140 acres of U.S. agricultural land. Much of
that land is tied to Smithfield Foods. Iranians own
4,324 acres of U.S. farmland, and Russians own
834 acres. North Korea owns none.
That does not seem like a lot, but in our eyes,
it’s too much.
U.S. farmland is the keystone of our nation’s
security. Selling it to those who wish us ill is folly.
s the next fire season approaches,
questions and concerns continue to
pour in from the public demanding
ways to avoid a repeat of the stifling smoke
and destruction of our federal forestlands yet
again in 2022.
The question is, “Can we do anything
about it?” The answer is “Yes.”
Preparation for
this fire season
GUEST
requires action
now. Many poli-
VIEW
cies governing the
Melvin
management of
Thornton
our federal forest-
lands were devel-
oped over a half
century ago. These outdated policies need
to be reviewed, updated and modernized to
match the current conditions on the ground
today. The authors of those policies did not
anticipate that our climate would be warming,
causing extended drought conditions that are
putting our federal forests at elevated risk of
catastrophic wildfire.
Initial suppression is just one of the pol-
icies that need to be examined. Extinguish-
ing a small fire quickly before it explodes
into a devastating mega-fire is simply com-
mon sense. Communities for Healthy Forests
understands that while every fire is not a can-
didate for quick suppression, many are.
Let’s combine common sense with scien-
tific data to strategically outmaneuver wild-
fire before it starts.
Government agencies such as NOAA, the
U.S. Forest Service and the Bureau of Land
Management have a rich database of informa-
tion regarding predictable weather patterns,
current ground conditions, vegetation types
and access points to name a few.
Securing rotary and fixed-wing air assets
combined with in-place contracts with fire-
fighting agencies/companies that can respond
quickly represents the kind of common sense
policy decisions we want to see, and the pub-
lic would applaud.
Changing federal policies to allow common
sense action by forest landowners and oper-
ators that are working in or near the forests
to take quick action on fires before agency
personnel arrive would be key. Action while
fires are small would reduce the number of
those fires escaping initial response by fed-
eral agencies, often with extended response
times. In Oregon, all forestland operators are
required to have basic fire training to safely
attack fires and many have the expertise and
equipment to stop fires quickly while small.
Action now has the potential to reduce the
number of large wildfires, the dangerous and
harmful smoke, and the loss of life and prop-
erty. The cost of implementing these measures
before fire season begins pales in comparison
to the expense of allowing small, controllable
fires to grow into devastating wildfire again
this fire season.
Melvin Thornton is the former district
manager (2000-2017) of the Douglas Forest
Protective Association and an active member
of Communities for Healthy Forests.