WASHINGTON – Rocky Mountain Farmers Union (RMFU) President Chad Franke today testified to the House Agriculture Committee on how to build demand for American agricultural products domestically and abroad by opening fair and competitive markets.
President Franke highlighted the need for enforcing and enhancing antitrust and pro-competition laws, strong local and regional markets, investments in local food purchasing agreements and stable export markets to help farmers capture the value of demand that already exists.
President Franke’s full verbal testimony is below.
—
Chairman Thompson, Ranking Member Craig, and members of the committee, thank you for the opportunity to testify today.
My name is Chad Franke, and I serve as President of Rocky Mountain Farmers Union, representing over 14,000 family farmers and ranchers across Wyoming, Colorado and New Mexico. I also serve on the board of National Farmers Union.
I grew up on a fifth-generation farm and ranch in northeastern Colorado. My wife and I created and operated a Berkshire pork business and feed mill before moving to Wyoming several years ago.
Today’s hearing is about building demand. We need strong local and regional markets, new opportunities for farmers and ranchers, and stable export markets. But demand alone is not enough if farmers cannot capture the value of that demand.
Family farmers and ranchers have been under tremendous economic pressure for decades and are at a breaking point. Congress has had to repeatedly step in with emergency assistance because decades of failed farm policy has not addressed the underlying causes of farm income instability. Family farmers and ranchers want fair markets, not government payments.
One of the biggest barriers to creating new opportunities is the lack of fair and competitive markets.
Recently, I spoke with a colleague about building a USDA-inspected facility capable of processing roughly 200 head of cattle per day for a source-verified, state-branded beef product. On paper, the investment makes sense. In practice, it probably will never be built.
The reason is not a lack of cattle. It is not a lack of consumer demand. It is not a lack of profitability. It is uncertainty created by a marketplace dominated by a handful of large companies with enormous market power – as recognized by President Trump and Secretary Rollins. When people do not believe they can compete on a level playing field, they won’t put their investment at risk. When investment in new ideas stops, we miss opportunities to meet local demand for homegrown products.
We see the same challenge at RMFU’s Cooperative Development Center, where we help evaluate new business opportunities to build stronger local economies and demand. But too often, good ideas run into the same obstacle: highly concentrated or unstable markets.
That is why increasing demand and increasing competition must go hand in hand.
Congress should:
- Protect and strengthen the Packers and Stockyards Act to bring more accountability to large meatpackers.
- Reinstate mandatory country-of-origin labeling for beef so consumers know where their food comes from and American ranchers receive proper recognition for their products.
- Continue efforts to strengthen antitrust enforcement.
These are not separate issues from demand; they are essential to ensuring that demand actually benefits farmers and ranchers.
We should also continue investing in local and regional food systems.
Many Farmers Union members expanded production and invested in equipment to serve schools and food banks through USDA’s local food purchasing initiatives. Those programs created stable markets and helped growers connect directly with their communities. When the programs were cancelled last year, not only did it hurt the communities they were serving, but many farmers were left with lost markets and investment.
That experience highlights an important lesson: building new markets takes time, financing, consistency and commitment. Farmers need confidence that successful programs and markets will not disappear overnight. The House farm bill authorizes these local food efforts and is a good start.
Family farmers and ranchers are always looking for ways to create more value, develop new markets, and meet consumer demand. We are ready to do our part. But if we want more investment, more processing, more local foods, and better opportunities for American agriculture, we need markets that are fair, competitive and stable.
Thank you, and I look forward to your questions.