Press Release

WASHINGTON, D.C . — At a Senate Agriculture, Nutrition, and Forestry Committee hearing this week, U.S. Senator Peter Welch (D-Vt.) , a member of the Senate Agriculture Subcommittee on Livestock , Dairy , Poultry , and Food Safety , emphasized how growing market consolidation in the agricultural industry has blocked small farmers from profits and raised costs for consumers in Vermont. Senator Welch also discussed how President Trump’s reckless war in Iran has increased financial burdens on farmers and producers across the country, including skyrocketing farm diesel and fertilizer prices. “We are in a crisis in American agriculture. There is an immense amount of wealth that is being created by the farmers—they’re just not getting any…. If we have this inability to do any control over what the input costs are and they march up—step-by-step as the price of corn goes up or the price of oats goes up—the farmer is totally at the mercy of a market that is consolidated….That is an issue that we’ve got to deal with.” said Senator Welch . “Rural America is really critical to the well-being of all of America, and I think we have to act. This Congress has to act.” Watch Senator Welch’s remarks here : Senator Welch asked Andy Green, Center Market Strategies Principal and Senior Advisor, about the impact of growing market consolidation on Vermont-sized farms: Sen. Welch: On small-scale farmers, it’s really, really brutal as well. I mean, we’re seeing consolidation among farmers as well, but that’s not to drive profit, it’s because the smaller farmers can’t sustain themselves when they’re losing this much per acre, Mr. Green, just talk to me about that. You know, I was on the Nitty Gritty farm in Charlotte, Vermont—eighth generation, and they’ve got two kids, hoping for the ninth generation. And, by the way, all farmers I know, they just love the idea of passing that farm on to their kids. Tell me about that issue. Mr. Green: Well, the challenge is that a lot of farmers and ranchers face—whether it is farmers in your state or farmers in other places—is no matter how big they are, they’re still much smaller than the processors and the retailers that are downstream from them. So, their ability to negotiate fair prices is very limited, and they’re price-takers. And in fact, some of the processors themselves are price-takers versus the retailers. So, we’ve got a system where the consumer is paying more, the farmer is getting less, and the folks in the middle are getting the benefits of all the hard work being done. So, that’s where the focus needs to be. Sen. Welch: I believe the Iran war—it’s not me believing it, it’s incontestable—that it’s raised prices. Diesel is way up, and that’s a big use on the farm; fertilizer is way up. But, what I’ve heard from you, is that has intensified what is a pre-existing problem with the consolidation, the high prices, and the really tight margins that our farmers are facing. Is that correct? Mr. Green: Yes, absolutely. ••• Last week in Addison County, Senator Welch heard directly from Vermont farmers and producers about how President Trump’s economic policies and war with Iran have caused the costs of food production to skyrocket. The Senator also recently joined Vermont Public Radio to discuss how President Trump’s economic policies have created pain and increased fertilizer prices for Vermont farmers. Senator Welch proposed an amendment to Republicans’ recent budget resolution, which would have helped farmers impacted by increased costs associated with President Trump’s war in Iran—including fuel, fertilizer, and other costs. ###