Farm groups are showing caution regarding the recent merger and acquisition trend in the agriculture industry, while companies included in the trend say innovation will benefit from the changes. At a Senate Judiciary Committee hearing Tuesday, lawmakers heard from top agriculture and commodity groups along with agribusiness leaders. During the hearing, the National Farmers Union asked for more oversight on what NFU President Roger Johnson called “failing antitrust enforcement” in Agriculture. Groups such as the National Corn Growers Association and the American Soybean Association indicated a desire to preserve competition, but add the mergers could allow for more agricultural biotech research. Agriculture industry companies at the hearing, including Monsanto and DuPont, say the mergers will allow for the expansion of innovation and choice for farmers.
In calling the hearing, Committee chair, Republican Senator Chuck Grassley of Iowa, voiced concern that “further concentration in the industry will reduce choice and raise the price of chemicals and seed for farmers.” He warned that price increase would be ultimately passed on to the consumer.
Source: NAFB News Service