10 Takes From This Week's Senate Hearing on Ag Consolidation

Merger bids amid the top six seed and chemical companies have been giving farmers cause for worry for months. On Tuesday, Sept. 20, representatives from agribusinesses, farmer organizations and others participated in a Senate Judiciary Hearing on “Consolidation and Competition in the U.S. Seed and Agrochemical Industry.” Here are some highlights of the witness testimony at this hearing.  Senator Chuck Grassley (R-IA)“It’s no secret that I’ve long been concerned about concentration and competition in the agriculture sector. Farmers are unique, their profession involves accepting prices from input providers and commodity markets, while hoping for good weather in-between. Farmers don’t have the ability to simply raise the price of their crops when they sell them to pass on higher input costs.”Jim Blome, President and CEO of Bayer CropScience LP “As a native Iowan and farmer, I am highly optimistic for the future. By combining with Monsanto we will be well positioned to deliver on the innovation that farmers demand. Most importantly, this transaction brings together creative minds from two complementary segments of the industry to address the challenges farmers face today and in the future.” Tim Hassinger, President and CEO of Dow AgroSciences “In order for the U.S. to maintain its global leadership in agricultural production and technology, companies such as Dow and DuPont must find ways to more effectively and efficiently deliver new technologies and tools to the American farmer. With new technology, farmers will be able to improve productivity and deliver the quality and quantity of food the world needs. And that is the rationale behind our proposed merger.” Senator Patrick Leahy (D-VT) “These mega-mergers raise questions about competition, our food supply, nutrition, and the livelihood of our farm economy. A number of voices have expressed significant concerns that the proposed mergers would eliminate head-to-head competition, dampen innovation, reduce choices for farmers, increase prices for both farmers and their customers, and threaten our national security.”