Reid Requests Conference with Senate and House on Agriculture Bills

On October 1, Richard Cox reported on The Hill Blog that Senate Majority Leader Harry Reid (D-Nev.) requested a conference committee between representatives from the House and Senate to resolve their differences over the Farm Bill.

Reid named seven Democrats and five Republicans to the conference, all who serve on the Senate Committee on Agriculture, Nutrition, and Forestry.  The conferees are Senators Debbie Stabenow (D-Mich.), Patrick Leahy (D-Vt.), Tom Harkin (D-Iowa). Max Baucus (D-Mont.), Sherrod Brown (D-Ohio), Amy Klobuchar (D-Minn.), Michael Bennet (D-Colo.), Thad Cochran (R-Miss.), Saxby Chambliss (R-Ga.), Pat Roberts (R-Kan.), John Boozman  (R-Ark.), and John Hoeven (R-N.D.).  House conferees have not yet been decided upon; however, under congressional protocol, Frank Lucas, chairman of the House Agriculture Committee, would preside over the negotiations.

The existing Farm Bill expired on Tuesday, as lawmakers had not reached an agreement on a new bill.  The Senate passed a bipartisan farm bill earlier in the year which would reduce spending by $24 billion, mostly through restructuring farm subsidies into a crop insurance program.  The House passed a similar bill; however, it reduced food assistance by nearly $40 billion and separated food assistance programs from the agriculture policy.

Senate Agriculture Committee Chairwoman Stabenow’s statements on the conference can be found on the Agriculture Committee website.  Richard Cox’s original report can be found on The Hill Blog.  For more information on the Farm Bill, see the Farm Bill section of the Senate Agriculture Committee website and the House Agriculture Committee website, as well as our past blog posts from June 7,  June 11, June 20, and July 12.

Written by Alyssa Looney – Research Assistant

The Agricultural Law Resource and Reference Center

@PSUAgLawCenter

October 1, 2013

CFIUS Issues Clearance for Smithfield Foods Merger with Shuanghui

On September 6, 2013, the Committee on Foreign Investment in the United States (CFIUS) granted approval of the purchase of Smithfield Foods by Shuanghui International. Smithfield expects the purchase, which is still conditional on Smithfield shareholder approval and customary closing conditions, to close shortly after the shareholder vote on September 24, 2013. Under the purchase, Smithfield shareholders will receive $34.00 per share in cash. According to Smithfield’s press release, Smithfield and Shuanghui are looking forward to moving ahead as one company. However, in a statement released by the Senate Agriculture, Nutrition, and Forestry Committee, Chairwoman Stabenow states that it is unknown what factors were used by CFIUS in making its decision to allow the merger, and that it is “troubling that taxpayers have received no assurances that… critical issues have been taken into account in transferring control of one of America’s largest food producers to a Chinese competitor with a spotty record on food safety.”

CFIUS’s main purpose is to examine foreign mergers for potential threats to national security. Its reasoning for allowing or prohibiting a foreign purchase remains confidential.

Please see our previous blog post for more information. For an overview of the CFIUS investigation process generally, please visit its website.

 

Written by Sarah Doyle - Research Assistant

The Agricultural Law Resource and Reference Center

@PSUAgLawCenter

September 9, 2013

Senate Committee Holds Hearing on Egg Production Standards

On July 26, 2012, the Senate Agriculture Committee conducted hearings into proposed legislation mandating that most egg producers comply with national hen housing standards.  Under Senate Bill 3239, over the next 15 to 18 years, egg producers with 3,000 or more hens would be required to eliminate conventional cages and replace them with systems that provide each bird with increased space.  During testimony, proponents of the Bill claimed the need for a consistent, national standard, while opponents of the Bill asserted that the costs of compliance would put many smaller operations out of business.  To view a video recording of the hearing, please click on the link below:

Senate Hearings on s. 3239-the-egg-products-inspection-act-amendments-of-2012

Written by M. Sean High, Research Assistant

Penn State Law, Agricultural Law Center