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Dayton splits with Wellstone on ag mergers
By Frederic J. Frommer, Associated Press, The Grand Forks Herald
January 4, 2001
 
WASHINGTON -- Breaking with fellow Minnesota Sen. Paul Wellstone on his first day on the job, Mark Dayton said Wednesday he doesn't support Wellstone's proposal for a moratorium on agriculture mergers.

"I'm not prepared to go that far at this point," Dayton said a couple of hours before being sworn in as a senator. "We often have the law of unintended consequences -- you end up creating problems that are greater than the ones you're trying to solve. But I certainly want to hear from people in the industry and the producers," including holding hearings on agribusiness consolidation.

It was a surprising start for Dayton, whose liberal ideology is close to Wellstone's. Many political analysts have predicted the two Democrats will vote in lockstep on most issues.

But Dayton, who once served as Minnesota's commissioner of economic development, may be approaching the job with a more business-friendly attitude that Wellstone, a former college professor and activist.

In the last Congress, Wellstone proposed an 18-month moratorium on agribusiness mergers in cases where one company had net revenue of more than $100 million and the other had more than $10 million. The Senate defeated the measure 71-27 in late 1999, but most Democrats voted for the legislation, as did Sen. Chuck Grassley, R-Iowa.

The issue has gained momentum in recent years, with a wave of mergers and acquisitions that some producers blame for a downturn in commodity prices. Just this week, Wellstone seized on the proposed merger of Tyson Foods and beef/pork packer IBP Inc., to call for more action against agriculture consolidation.

"More than ever, America's family farmers need and deserve good old-fashioned trust busting," Wellstone said in a statement.

In an interview after his official swearing in, Dayton elaborated on his concerns about the moratorium proposal.

"If you tell Company X they cannot merge with Company Y, and so then Company Y goes off and merges with some other company -- maybe a foreign company -- have you really achieved the purpose you desire?" he said.

"It's very difficult when you start trying to legislate business activity -- especially intra-business activity -- because they're businessmen and we're legislators," Dayton added.

Wellstone spokesman Jim Farrell -- who took a leave of absence to work on Dayton's campaign last fall -- downplayed the disagreement.

"Everybody in Minnesota knows that Mark Dayton is going to fight for family farmers," he said. "He and Paul have been close friends for 20 years, politically and personally. But Mark Dayton is his own man, and Wellstone and Dayton are not going to agree on every issue."

Farrell added that Wellstone will introduced a more targeted moratorium measure this year, but he didn't have any details.

"The problem has worsened since the original bill failed," Farrell said.

The National Farmers Union, which represents family farmers, supports the moratorium, but its vice president for government relations, Tom Buis, said he wasn't concerned that Dayton didn't.

"Senator Dayton has always been very pro family farmer," Buis said. "I'm sure we'll talk to him about it. We would advocate that he get on board."