S. 4007 — Family Grocery and Farmer Relief Act

This section prohibits a covered meatpacking enterprise from owning, controlling, or operating any entity or combination of entities engaged in more than one line of protein in the United States, in or affecting interstate or foreign commerce, and further prohibits such enterprises from acquiring, on or after the date of enactment, control of assets or operations in a line of protein other than the one in which it already engages if the acquisition would violate the prohibition. The Commission must require divestiture, pursuant to section 102, of any covered meatpacking enterprise that violates these prohibitions.

This section establishes Commission authority to develop and oversee divestiture plans for covered meatpacking enterprises violating section 101, requiring asset sales to independent entities or creation of new independent entities via spin-off or structural separation. Such plans must promote competition, protect consumers, producers, workers, and food supply resilience (as described in section 602) and, to the maximum extent practicable, avoid asset reconcentration, prioritize ownership by farmers’ cooperatives, worker-owned enterprises, or small- and mid-sized businesses, and prevent reacquisition by dominant firms. It further directs the Commission to develop an initial divestiture plan within 120 days of enactment for each such enterprise processing more than one line of protein as of enactment, allows the enterprise 30 days to submit comments, and requires Commission approval of a final plan thereafter.

This section requires the Commission to order divestiture pursuant to section 202 in a regional or national beef market if (1) the Herfindahl-Hirschman Index (HHI) exceeds 1800, (2) the four-firm concentration ratio (CR4) exceeds 50 percent, or (3) any covered meatpacking enterprise has a market share of 30 percent or more.

This section establishes the Commission's authority and process to order divestitures by covered meatpacking enterprises in regional and national beef markets to reduce concentration if thresholds in section 201 are met (i.e., Herfindahl-Hirschman Index (HHI) above 1,800 with an increase of more than 100 points; four-firm concentration ratio (CR4) above 75%; or single-firm market share above 50%). Divestiture may consist of (1) selling entities, facilities, or business units to independent entities or (2) creating new independent entities (e.g., via spin-offs). In regional beef markets, the Commission must (1) for HHI or CR4 violations, order the largest covered meatpacking enterprise with multiple entities to divest its largest entity, facility, or business unit; reassess concentration; and repeat as necessary until thresholds are unmet or further divestiture would not reduce concentration; (2) for single-firm share violations, order divestiture by the violating enterprise; and (3) if further divestitures are infeasible, use all equitable powers to deconcentrate the market. In the national beef market, the Commission must apply a substantially similar process, including specified divestitures and equitable powers, until section 201 thresholds are unmet.

This section prohibits any covered meatpacking enterprise in the beef line of protein from slaughtering more than 10% of the cattle produced by any single covered feedlot in a calendar year. (Congress finds that long-term supply contracts between large packers and feedlots are functionally equivalent to ownership, leading to feedlot consolidation, reduced demand for cattle from independent producers, and diminished competition.) It establishes a private right of action allowing any feedlot owner or operator that sold less than 10% of its cattle to the violating enterprise that year to sue for treble damages—calculated as three times the difference between the enterprise's highest and the plaintiff's lowest cattle price that year, multiplied by the plaintiff's total cattle sales—plus reasonable costs and attorney's fees; it also authorizes the Commission to impose equivalent civil penalties on violators for compensating affected feedlots.

This section sets forth six congressional findings concerning foreign ownership and control of domestic beef, pork, and chicken processing capacity, including (1) national security and resilience concerns from multinational corporations; (2) JBS S.A.'s status as the largest U.S. beef processor via acquisitions; (3) J&F Investimentos S.A.'s $280 million settlement of DOJ and SEC bribery charges, with proceeds partly financing U.S. meatpacking acquisitions; (4) market distortions from corruption-derived financing; and (5)-(6) China's growing food supply chain footprint through WH Group-owned Smithfield Foods and its announced January 2026 acquisition of Nathan's Famous.

This section prohibits covered foreign-controlled meatpacking enterprises from operating in interstate commerce in the United States. It requires the Commission, not later than 120 days after enactment, to develop and require implementation of divestiture plans for such enterprises' U.S. meatpacking and food processing operations, which may include transfer to new independent U.S.-domiciled entities or sale to other entities subject to conditions preserving competition and national security (potentially in consultation with relevant agencies). In structuring plans, the Commission must promote competition, protect consumers and producers, ensure food supply resilience, prioritize ownership by farmers’ cooperatives and small or mid-sized businesses, avoid asset reconcentration or reacquisition by dominant firms, and may consider prior Foreign Corrupt Practices Act violations; the Commission may grant a single 90-day extension upon certifying progress and binding agreements toward divestiture.

This section directs the Commission to complete, not later than 180 days after the date of enactment, a study of the business practices, financing, ownership structures, and competitive effects of foreign-controlled entities with significant meatpacking and related operations in the United States, including those engaged in beef or pork production and processing, in consultation with specified national security and other agencies (e.g., Department of Defense, Department of Homeland Security, Office of the Director of National Intelligence, Department of Agriculture, and Department of Justice). The section authorizes the Commission, based on the study, to determine that divestment, structural separation, or other remedial action is needed to protect competition, national security, or the resilience of the U.S. food system, provided the determination is submitted to Congress for review and potential disapproval pursuant to the Congressional Review Act procedure in section 802 of title 5, United States Code (i.e., expedited consideration of a joint resolution of disapproval), after which the Commission may require such action. Separately, the section requires the Commission to submit to specified Senate and House committees (i.e., Commerce, Science, and Transportation; Judiciary; Select Intelligence; Energy and Commerce; Judiciary; and Permanent Select Intelligence), not later than 120 days after the date of enactment, a report that includes a divestment decision with respect to each foreign-controlled meatpacking enterprise.

This section sets forth congressional findings that high meat prices due to supply chain concentration and unfair pricing practices, including price discrimination, harm consumers and small grocers; affirms the Federal Trade Commission's (FTC) authority under section 406 of the Packers and Stockyards Act (7 U.S.C. 227) and section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to prevent such practices in retail and wholesale sales of meat and livestock products; and directs the FTC to proactively enforce these authorities and use its section 6(b) reporting powers (15 U.S.C. 46(b)) to study meat market conditions.

This section requires the Federal Trade Commission (FTC), within 180 days of enactment, to submit to six congressional committees (Senate Committees on Commerce, Science, and Transportation; Agriculture, Nutrition, and Forestry; and the Judiciary; and House Committees on Energy and Commerce; Agriculture; and the Judiciary) a report describing its current and planned use of authorities under section 406 of the Packers and Stockyards Act (7 U.S.C. 227)—which prohibits unjustly discriminatory practices by packers, dealers, and handlers in livestock commerce—and section 5 of the FTC Act (15 U.S.C. 45) to address (1) unfair and unjustly discriminatory retail and wholesale prices for meat, meat food products, and unmanufactured livestock products and (2) meat price discrimination (including beef and pork) resulting in higher prices or less favorable terms for independent, smaller, or neighborhood grocery stores. The report must also cover the FTC's use of section 6(b) of the FTC Act (15 U.S.C. 46(b)) to study retail and wholesale meat markets, pricing, contracting, and merchandising; include the FTC's interpretation of relevant authorities, policies and enforcement priorities, relevant investigations and actions, assessments of consumer impacts, interagency coordination, legislative recommendations, and related studies; and protect confidential information.

This section authorizes the Administrator of the Small Business Administration to provide financial assistance, loan guarantees, technical assistance, and other assistance to eligible entities—defined as farmers’ cooperatives and small business concerns (within the meaning of section 3 of the Small Business Act)—for the purpose of acquiring, operating, or expanding meatpacking plants or facilities divested pursuant to this Act. Eligible entities must submit applications to the Administrator, who must give preference, to the extent consistent with sound underwriting and program integrity, to proposals for locally or regionally focused operations that enhance competition for livestock and benefit producers and consumers. The section authorizes appropriations of such sums as are necessary.

This section deems a failure to divest pursuant to the Act an unlawful method of competition under section 5 of the Federal Trade Commission Act (15 U.S.C. 45) and authorizes the Federal Trade Commission (FTC) to enforce such divestitures using all applicable FTC Act authorities and procedures. It extends FTC enforcement to persons subject to the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.) notwithstanding the jurisdictional exemption in 15 U.S.C. 45(a)(2); imposes civil penalties of 10% of the violator's revenue during the violation period or, for knowing violations, three times the damages under section 5 of the FTC Act; and authorizes FTC civil actions in federal district court for equitable relief (e.g., injunctions, specific performance, monitors, disgorgement). The section further directs the FTC to use recovered penalties to promote competition (e.g., funding new competitors under title V of the Act) and requires the Department of Agriculture to provide information and assistance to the FTC.

This section directs the Commission to promulgate, not later than 90 days after enactment of this Act and in accordance with 5 U.S.C. §553, rules necessary to carry out this Act, including rules relating to (1) definitions of markets for cattle slaughter and beef processing in the United States; (2) standards and requirements for divestitures under this Act; and (3) identification, in consultation with national security agencies, of all covered foreign-controlled meatpacking enterprises. In promulgating rules under this Act relating to required divestitures and divestment plans, the Commission must aim to (1) discourage monopolistic practices; (2) strengthen and preserve the competitive position of small business concerns; (3) foster the development of new independent enterprises; and (4) prefer farmers’ cooperatives and small businesses in divestment plans. If the Commission fails to promulgate the rules by the deadline, this section’s requirements apply nonetheless.