The planned Bayer-Monsanto merger announced last week is raising concerns by many in agriculture. Some feel that research key to developing new seed traits and other breakthroughs could be slowed. The Washington Post has reported the $66 billion Bayer-Monsanto deal could reshape farming, further concentrating the nation’s seed and agrochemical industry while reducing choice and stifling innovation needed to feed a growing world.
Regulators could stop the deal over antitrust concerns, but if it goes through, the Post reports the new seed and chemical giant could limit the entry of smaller firms and their innovations.
American Farm Bureau Senior Economist Bob Young will testify at a senate hearing this week on industry consolidation, and predicts some possible issues with genetic licensing
With four other major consolidation deals in the works, economists are questioning whether there’s too much consolidation in agriculture. “Have there been too many mergers, are companies getting too big, is there not enough competition?” asked Keith Fugle, a U.S. Department of Agriculture economist. “Experts have been asking questions like this in other sectors of the economy and now this trend is happening in agriculture.”
(From the National Association of Farm Broadcasters News Service)