US Senate News:
WASHINGTON, D.C. — Sen. Martin Heinrich (D-N.M.) joined fellow senators in calling on President Biden to use his executive authority to lower food prices for families in New Mexico and across the nation.
Americans are facing soaring food prices due to excessive price gouging by major food and grocery companies.
A small number of players dominate these industries.
Four grocery retailers account for more than a third of the nation's grocery sales. Four food companies control more than 60% of sales in most grocery categories.
As a result, consumers are spending more of their income on food than they have in the past 30 years.
“The federal government should do everything it can to lower food prices. We can use executive authority to take additional steps to address rising food prices without action from Congress. We believe that,” the lawmakers said in a letter to President Biden.
“These companies have posted record profits in recent years, with CEOs boasting on earnings calls about how their company's price increases have outpaced inflation. found that corporate profits accounted for more than 50% of food price increases, whereas in the previous 40 years, corporate profits accounted for only 11% of the increase.''
While some companies may point to rising inflation, food price increases are outpacing inflation, with households paying 25% more for groceries than before the pandemic. These price increases have hit low-income households the hardest. In 2022, the bottom fifth of earners spent 25% of their income on groceries, compared with less than 3.5% for the top fifth.
In their letter, Heinrich and colleagues urge the president to use the full scope of his executive powers to consider the following proposals:
Encouraging the Federal Trade Commission (FTC) and working with the U.S. Department of Agriculture (USDA) to prohibit exclusive contracts by leading companies in the food industry. Encouraging the FTC to issue guidance, investigate, and take enforcement actions where appropriate, potential violations of the Robinson-Patman Act and Section 5 of the FTC Act in the food industry. Work with USDA to increase the number of small businesses that receive government contracts. Work with USDA to ensure that technical factors reflect the long-term costs of food sector consolidation. Urge the Department of Justice (DOJ) and FTC to scrutinize and, where necessary, block mergers and acquisitions in the food and agriculture sector. Encourages the Department of Justice to prosecute actors in the agriculture and food sectors for price fixing and other anticompetitive practices. Directs the CFTC and FTC to form a joint task force to investigate food price manipulation throughout the supply chain.
The letter is led by Sen. Elizabeth Warren (D-Mass.).
In addition to Heinrich, the letter also includes Sens. Richard Blumenthal (D-Conn.), Cory Booker (D.N.J.), Bernie Sanders (Iconic State, Vt.), and Peter. It is signed by Senator Welch (D-Vermont).
This letter is supported by the American Economy Liberties Project, Campaign for Family Farms, Farm Action, Farm Aid, Food and Water Watch, Main Street Alliance, Open Markets Institute, Small Business Majority, Friends of the Earth, P Street, and Institute for Local. It has been. Independence.
The text of the letter can be found here.