Cornucopia’s Take: With the mergers of the last two years, three companies now control almost two-thirds of the commodity crop seeds and nearly 70% of the agricultural chemicals and pesticides in the world. Four companies now control 85% of the U.S. corn seed market. Senator Booker’s bill, which Cornucopia gladly supports, would put large mergers in the food system on hold for 18 months and set up a commission to determine how to strengthen antitrust oversight. Farmers and ranchers–and consumers–deserve fair and open markets.
US Senator Takes On ‘Foodopoly,’ Wants To Halt Big Agro Mergers
Montclair Patch
by Eric Kiefer
Sen. Cory Booker’s bill would hit the pause button on corporate mergers in the nation’s agriculture and food industry.
Cranberry Bog, Chatsworth, NJ Source: www.booker.senate.gov |
The United States is losing farmers at an alarming rate. Agricultural jobs and wages are drying up. Rural communities are disappearing. And according to U.S. Senator Cory Booker (D-NJ), it’s due in large part to “unprecedented” mergers in the nation’s food and agriculture industry.
On Wednesday, Booker – the former mayor of Newark, New Jersey – introduced a bill that he said would “put a much-needed pause” on an out-of-control industry by enacting an 18-month merger moratorium in the U.S. agribusiness, food/beverage manufacturing and grocery retail sectors.
The bill would also would also establish a federal commission to study ways to strengthen antitrust oversight of the farm and food sectors.
The proposed law, S-3404, otherwise dubbed as “The Food and Agribusiness Merger Moratorium and Antitrust Review Act of 2018,” has gained resounding support from dozens of social justice organizations (see the list below). It was referred to the Committee on the Judiciary for further review on Aug. 28.
According to Booker, in the past two years, chemical and seed company acquisitions and mergers have allowed just three companies to control two-thirds of the crop seed and nearly 70 percent of the agriculture chemical markets. Meanwhile, net income for U.S. farmers has fallen by more than half in just five years.
Today, a small number of giant companies control every link of our food chain, Booker said.
“Consolidation has now reached a point where the top four firms in almost every sector of the food and agriculture economy have acquired abusive levels of market power,” the senator charged.
Hence the introduction of S-3404, which was modeled after a similar proposal introduced 20 years ago by the late U.S. Senator Paul Wellstone of Minnesota.
“These challenges can be mitigated by more active use of our antitrust laws, and allowing an opportunity for U.S. farmers and ranchers to compete in fair and open markets,” Booker stated. “This bill would put a much-needed pause on the largest, most consequential acquisitions and mergers in the food and agriculture sector, and give Congress an opportunity to update our antitrust laws in order to better protect America’s farmers, workers, consumers, and rural communities who are being harmed by the ever-increasing levels of corporate concentration.”
‘BUSTING UP THE FOODOPOLY’
On Wednesday, several social justice organizations praised Booker’s bill and said it represents a big step in the fight to put the chill on mergers in big agribusiness.
Wenonah Hauter, executive director of Food & Water Watch, said that the group “enthusiastically supports” the potential law.
“This legislation is a crucial step to busting up the Foodopoly in which a handful of players drive food policy in the service of Wall Street, not Main Street,” Hauter said.
Public policy research group Organization for Competitive Markets (OCM) stated that the bill would “establish a fair marketplace for family farmers and their communities.”
“Economists agree that more than 40% consolidation by the top four corporations in a sector indicates a highly concentrated market where abuses are likely. From collusion and price fixing to hike up prices for consumers to predatory and retaliatory practices against farmers and ranchers, we know that corporate abuses are not only likely, they are rampant.”
The Food and Agribusiness Merger Moratorium and Antitrust Review Act has been endorsed by the following organizations:
ActionAid USA
Alabama Contract Poultry Growers Association
Alliance for Democracy
American Agriculture Movement
American Grassfed Association
Animal Wellness Action
Appetite for Change (MN)
Beyond Pesticides
California Dairy Campaign
California Farmers Union
Campaign for Contract Agriculture Reform
Campaign for Family Farms and the Environment
Cattle Producers of Louisiana
Center for Food Safety
Community Farm Alliance (KY)
Contract Poultry Growers Association of the Virginias
The Cornucopia Institute
Crawford Stewardship Project (WI)
Dakota Rural Action of SD
Dallas Farmers Market Friends
Family Farm Action
Family Farm Defenders (WI)
Farm Aid
Farm and Ranch Freedom Alliance
Farm Women United
Farmworker Association of Florida
Federation of Southern Cooperatives/Land Assistance Fund
Food & Water Watch
Food Chain Workers Alliance
Food for Maine’s Future
Food Policy Council of San Antonio
Friends of the Earth U.S.
Government Accountability Project
GROW North Texas
HEAL Food Alliance
Idaho Organization of Resource Councils
Illinois Farmers Union
Illinois Stewardship Alliance
Independent Cattlemen of Wyoming
Institute for Agriculture and Trade Policy
Iowa Citizens for Community Improvement
Iowa Farmers Union
Johns Hopkins Center for a Livable Future (MD)
Kansas Farmers Union
Land Stewardship Project (MN)
Michigan Farmers Union
Minnesota Farmers Union
Missouri Farmers Union
Missouri National Association for the Advancement of Colored People
Missouri Rural Crisis Center
National Family Farm Coalition
National Farmers Organization
National Farmers Union
National Latino Farmers & Ranchers Trade Association
National Women Involved in Farm Economics
Nebraska Farmers Union
North Dakota Farmers Union
Northeast Organic Dairy Producers Alliance
Northeast Organic Farming Assoc. – MA
Northeast Organic Farming Assoc. – NY
Northeast Organic Farming Assoc. – VT
Northern Plains Resource Council (MT)
Northwest Atlantic Marine Alliance (MA)
Ohio Ecological Food and Farm Association
Oklahoma Independent Stockgrowers Association
Oklahoma Stewardship Council
Organic Farmers’ Agency for Relationship Marketing (OFARM)
Organic Seed Alliance
Organic Seed Growers & Trade Association (OSGATA)
Organization for Competitive Markets
PCC Community Markets (WA)
Pennsylvania Farmers Union
Powder River Basin Resource Council (WY)
R-CALF United Stockgrowers of America
Rocky Mountain Farmers Union
Rural Advancement Foundation International – USA (RAFI-USA)
Rural Coalition/Coalición Rural
Rural Vermont
Slow Food Dallas-Ft. Worth
South Dakota Farmers Union
Southern Colorado Livestock Association
Western Colorado Alliance
Western Organization of Resource Councils (WORC)
Wisconsin Farmers Union