What does Preamble of Family Grocery and Farmer Relief Act do?

This bill, formally titled 'To restore competition in the meatpacking industry by reducing excessive concentration and market power and ultimately reduce prices for American consumers, and for other purposes,' aims to restore competition in the meatpacking industry. The bill intends to reduce excessive concentration and market power within the meatpacking industry. A stated goal of the bill is to ultimately reduce prices for American consumers.

What does SHORT TITLE. of Family Grocery and Farmer Relief Act do?

This bill is formally titled the Family Grocery and Farmer Relief Act.

What does FINDINGS AND PURPOSES. of Family Grocery and Farmer Relief Act do?

This section outlines findings regarding the concentrated nature of the U.S. meatpacking industry. It states that a small number of firms control a dominant share of beef, chicken, and pork markets. The text highlights a significant increase in market concentration since 1980, with four firms controlling 85% of the beef market and 67% of the pork market. The findings indicate that this concentration creates barriers to entry for independent processors and negatively impacts producers and consumers. The section alleges that meatpackers have used market power to suppress wages, destroy jobs, and subject workers to dangerous conditions. It notes diminished bargaining power for independent producers and increased costs for consumers, with a reduced share of the consumer's dollar going to ranchers. The stated purposes of the Act include restoring competition in the meatpacking industry, prohibiting anti-competitive mergers, and authorizing structural separation of dominant firms. The Act aims to protect independent cattle producers, ensure safer and fairer jobs for workers, and promote the growth of independent meat processors. A further purpose is to help lower prices for consumers.

What does DEFINITIONS. of Family Grocery and Farmer Relief Act do?

This section defines terms used throughout the Act. “Beef meatpacking market” includes both the national and regional markets for cattle slaughter and beef processing. The “Commission” is defined as the Federal Trade Commission. A “covered feedlot” is defined as a feedlot with a capacity of 24,000 head of cattle or more. “Covered foreign-controlled meatpacking enterprise” initially includes JBS S.A. and its affiliates, with the Commission having the authority to designate additional entities. “Covered meatpacking enterprise” generally refers to the definition of “packer” in the Packers and Stockyards Act of 1921, but the Commission must establish a de minimis threshold and rules regarding common control within 90 days of enactment. “CR4” refers to the sum of the market shares of the four largest firms in a relevant market. A “farmers’ cooperative” is defined as an organization exempt from taxation under section 521 of the Internal Revenue Code of 1986. “Feedlot” refers to facilities used for feeding livestock intended for slaughter, excluding incidental feeding. “HHI” means the Herfindahl-Hirschman Index. “Line of protein” encompasses various livestock, products, poultry, and meats, with the Commission able to designate additional categories to prevent evasion. “Market share” is determined by rule by the Commission based on slaughter, processing capacity, volume, or sales. The “national beef market” is defined as the market of the United States as a whole, or a broader integrated geographic market as determined by the Commission. “Regional beef market” is defined by reference to the Department of Agriculture’s regional direct slaughter cattle reporting regions.

What does LIMITATION ON OPERATION IN MULTIPLE LINES OF PROTEIN. of Family Grocery and Farmer Relief Act do?

This section prohibits covered meatpacking enterprises from operating in more than one line of protein in the United States. The prohibition extends to new acquisitions of assets or operations in a different line of protein after the Act's enactment. If a covered meatpacking enterprise violates these restrictions, the Commission is required to mandate divestiture as outlined in section 102.

What does DIVESTITURE AUTHORITY. of Family Grocery and Farmer Relief Act do?

This section establishes the Commission's authority to develop and oversee divestiture plans for meatpacking enterprises violating section 101. Divestiture plans must provide for either the sale of assets to independent entities or the creation of new, independent entities through structural separation. The Commission must act in a manner consistent with the public interest, promoting competition, protecting consumers, producers, and workers, and ensuring a resilient food supply, as described in section 602. Divestitures should avoid reconcentration of assets, encourage ownership by farmers' cooperatives and small businesses, and prevent reacquisition by firms contributing to the need for divestiture. The Commission must develop a divestiture plan for each covered meatpacking enterprise processing more than one line of protein within 120 days of the Act's enactment. Covered meatpacking enterprises have 30 days to submit comments on the proposed plan to the Commission. Following the comment period, the Commission will consider and respond to significant comments before approving a final version of the plan.

What does PROHIBITION ON UNLAWFUL HORIZONTAL CONSOLIDATION. of Family Grocery and Farmer Relief Act do?

This section outlines conditions that trigger a requirement for divestiture. The Commission must require divestiture if certain market concentration thresholds are met in either a regional or national beef market. These thresholds include a Herfindahl-Hirschman Index (HHI) exceeding 1800. The thresholds also include a Concentration Ratio (CR4) exceeding 50 percent. Finally, a threshold is met if any covered meatpacking enterprise holds a market share of 30 percent or more.

What does REGIONAL AND NATIONAL BEEF MARKET DIVESTITURE AUTHORITY AND of Family Grocery and Farmer Relief Act do?

This section establishes a Regional and National Beef Market Divestiture Authority and Process. Divestiture may involve selling entities or creating new, independent entities. If conditions described in section 201 are met, the Commission shall order divestiture in regional markets, starting with the largest covered meatpacking enterprise’s largest entity. After initial divestiture, the Commission will reassess market concentration and may order further divestitures until thresholds in section 201 are no longer met. If a single firm's market share meets conditions described in section 201(3), the Commission shall order divestiture of that enterprise. If further divestitures are impossible, the Commission can use equitable powers to deconcentrate the market. A similar process applies to the national beef market, allowing the Commission to order divestiture and use equitable powers to deconcentrate the market.

What does VERTICAL CONSOLIDATION. of Family Grocery and Farmer Relief Act do?

This section addresses vertical consolidation within the beef industry. It finds that long-term contracts between large packers and feedlots can lead to consolidation and reduced competition. It prohibits covered meatpacking enterprises from slaughtering more than 10 percent of the cattle produced by any single covered feedlot. Feedlot owners or operators who sold less than 10 percent of their cattle to a violating meatpacking enterprise may bring a civil action. The civil action allows recovery of damages equal to three times the difference between the highest and lowest cattle prices paid, multiplied by the total number of cattle sold, plus reasonable costs and attorney's fees. The Commission may impose a civil penalty equal to the damages and use the recovered amount to compensate affected feedlots.

What does FINDINGS. of Family Grocery and Farmer Relief Act do?

This section identifies concerns regarding the ownership of significant portions of U.S. beef, pork, and chicken processing capacity by foreign-based multinational corporations. It highlights JBS S.A. as the largest beef processor in the U.S. and notes its acquisition of domestic assets. The text references a settlement by J&F Investimentos S.A. for bribery and corrupt practices, indicating that funds from these practices were used to finance U.S. meatpacking acquisitions. It states that the use of preferential financing distorted competition and disadvantaged firms using lawful financing. The summary notes the increasing presence of the People's Republic of China in the U.S. food supply chain, citing Smithfield Foods and the announced acquisition of Nathan's Famous. The section concludes that the public should be informed about the effects of foreign control over major U.S. processing capacity and brands on competition, pricing, and national security.

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Family Grocery and Farmer Relief Act

Last updated: 3/5/2026 · Introduced: 3/5/2026

Author: Charles Schumer (D-NY)

TL;DR (AI)

The Family Grocery and Farmer Relief Act prohibits covered meatpacking enterprises from operating in more than one line of protein in the United States.
The Act establishes the Commission's authority to develop and oversee divestiture plans for meatpacking enterprises violating anti-competitive rules.
The Commission must require divestiture if certain market concentration thresholds are met in either a regional or national beef market, including a Herfindahl-Hirschman Index exceeding 1800.
The Act mandates the divestiture of covered foreign-controlled meatpacking enterprises operating in interstate commerce in the United States, with divestiture plans to be developed within 120 days of enactment.
The Act establishes funding for farmer's cooperatives and small businesses to acquire, operate, or expand meatpacking plants or facilities divested pursuant to the Act.

119th Congressin committeeOfficial page

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