Rapid Review: White House Executive Order on Competition Features Agriculture Prominently

On July 9, 2021, President Biden issued an executive order titled, “Executive Order on Promoting Competition in the American Economy” requiring multiple executive agencies, including the U.S. Department of Agriculture, to assess industry practices, revise or promulgate regulations accordingly and develop and submit plans and analysis addressing topics of competition within their respective industries.   The order also creates a White House Competition Council, which includes the Secretary of Agriculture (Secretary), to address unfair “concentration, monopolization, and unfair competition” in the U.S. economy.  Specifically, according to the text of a White House Fact Sheet issued simultaneously, the order:

• “Directs USDA to consider issuing new rules under the Packers and Stockyards Act making it easier for farmers to bring and win claims, stopping chicken processors from exploiting and underpaying chicken farmers, and adopting anti-retaliation protections for farmers who speak out about bad practices.
• Directs USDA to consider issuing new rules defining when meat can bear “Product of USA” labels, so that consumers have accurate, transparent labels that enable them to choose products made here.
• Directs USDA to develop a plan to increase opportunities for farmers to access markets and receive a fair return, including supporting alternative food distribution systems like farmers markets and developing standards and labels so that consumers can choose to buy products that treat farmers fairly.
• Encourages the FTC to limit powerful equipment manufacturers from restricting people’s ability to use independent repair shops or do DIY repairs—such as when tractor companies block farmers from repairing their own tractors.”

The order’s text is much more specific on these tasks and also directs the Secretary of Agriculture:

(1) within 180 days, to submit a plan to promote competition in agricultural industries and to support value-added agriculture and alternative food distribution systems, listing specific means to accomplish those objectives;

(2) within 300 days, in consultation with the Federal Trade Commission, to submit a report on the effect of retail concentration and retailers’ practices on competition in the food industries and means to enhance access to markets; and

(3) submit a report, in consultation with Department of Commerce and United States Patent and Trademark Office, outlining concerns and strategies for increasing competition in the intellectual property system in seed and other input markets. 

Written by:
Audry Thompson – Research Assistant
Brook Duer – Staff Attorney