Attorney General Ellison joins new partnership with USDA to enhance competition, protect consumers and producers in food and agriculture markets
New Agriculture Competition Partnership comes in response to bipartisan effort AG Ellison led seeking ways to collaborate with USDA on greater enforcement in agriculture markets to ensure fairness and integrity for Minnesota farmers, ranchers, and consumers
July 20, 2023 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today that Minnesota has joined the new Agriculture Competition Partnership of the U.S. Department of Agriculture (USDA), a partnership between USDA and bipartisan attorneys general in 31 states and the District of Columbia to enhance competition and protect consumers in food and agriculture markets, including in grocery, meat and poultry processing, and other markets.
The new partnership stems from a December 21, 2021 letter that Attorney General Ellison led from a bipartisan coalition of 16 attorneys general to USDA Secretary Tom Vilsack. In the letter, the coalition Attorney General Ellison led offered recommendations for improving competition in the livestock industry, one of which was a recommendation to allow state attorneys general to seek some of the funds appropriated by Congress for food and agriculture supply-chain resilience in order to support state-based antitrust enforcement efforts and increase partnership opportunities between state attorneys general and federal agencies.
Secretary Vilsack announced the partnership yesterday at the White House Competition Council meeting that marked the second anniversary of President Biden’s Executive Order on Promoting Competition in the American Economy. The partnership will assist state attorneys general in tackling anticompetitive market structures in agriculture and related industries that are raising prices and limiting choices for consumers and producers. The partnership’s framework was established collectively by state attorneys general, USDA, and The State Center, an organization that helps protect consumers by providing access to training, technical services, legal resources, and investigative, economic, and other expert support. Yesterday’s announcement follows President Biden’s September 2022 announcement that USDA made $15 million available to state attorneys general to increase collaboration with USDA on antitrust enforcement.
“Agriculture markets have seen significant consolidation and decreased competition, which make it harder for Minnesotans — be they farmers, ranchers, or consumers — to afford their lives,” Attorney General Ellison said. “I’m gratified that the Biden Administration has granted my request for new resources for state attorneys general to partner with the Administration, and that this large, bipartisan partnership has come together to take advantage of it on behalf of our states’ producers and consumers.
“Unfair markets in agriculture often result in consumers, farmers, and those in farming communities facing artificially high prices. People are depending on state attorneys general to find solutions and there is much work we need to do to examine these markets closely. I’m grateful for the opportunity that Secretary Vilsack and the Biden Administration have provided to work with the USDA and my bipartisan attorney general colleagues on these critical issues,” Attorney General Ellison continued.
The Minnesota Attorney General’s Office is actively investigating and litigating competition issues in the agriculture markets, including in a lawsuit that accuses Syngenta and Corteva of using “loyalty programs” with pesticide distributors to exclude generic competitors from the market. The Minnesota Attorney General’s Office encourages Minnesotans to report potential anticompetitive activity in any markets, including agriculture markets, by submitting information online.
Background on the Agricultural Competition Partnership
Under this new Agricultural Competition Partnership, USDA is investing in opportunities to combine state and federal authorities, expertise, and market insights. USDA is also leveraging funds to support complex cases and to jointly support research and academic work for use in future cases.
Focus areas of the Agricultural Competition Partnership include:
- Anticompetitive market structures and practices, as well as price gouging and other anti-consumer practices, in food, retail, meat and poultry processing, and other agriculture industries;
- Lack of choices for consumers and producers;
- Conflicts of interest, misuse of intellectual property, and anticompetitive barriers across the food and agriculture supply chains, such as in seed markets.
Specifically, this initiative will enhance the capacity of state attorneys general to conduct on-the-ground assessments of competition and consumer issues, enhance coordination between federal and state agriculture and competition authorities, create new and more independent research programs, and ultimately result in fairer and competitive markets and more resilient supply chains.
At the request of the states, USDA is partnering with the Center for State Enforcement of Antitrust and Consumer Protection Laws, a neutral, nonpartisan organization that provides similar support to the states, better known as The State Center. The State Center is establishing the necessary mechanisms for the attorneys general to cooperate with USDA. These mechanisms include an oversight committee to establish the project governance and transparency standards for the partnership and a project selection advisory committee that will review project requests and recommend approval. Both committees will be composed of participating bipartisan state attorney general offices. Additionally, USDA has engaged the American Antitrust Institute to be a resource for the states on this project.
All state are eligible to join by sending a letter of intent to participate to USDA. States can join or depart at any time. Only participating partners can qualify for funds or serve on the committees. A list of the states participating in the cooperative agreement is available on the AMS Fair and Competitive Markets webpage.