Consolidation is occurring across all sectors of the agriculture industry at the farm, supply, and service levels. Agriculture continues to see a shift in cropland and livestock production to larger farms. Lower commodity prices, tighter profit margins and technology may all be drivers of this shift. Despite this, family businesses still dominate U.S. agriculture.
At the same time, consolidation has occurred in the agricultural service and supply areas. Mergers and acquisitions have happened between some of the largest agricultural suppliers, such as Dow and DuPont, Syngenta and ChemChina, and Monsanto and Bayer. Approval of these acquisitions and mergers, or similar deals, requires compliance with rules and regulations set forth to avoid monopolies, preventing the loss of competition and unfair economic impacts.
Do current regulations go far enough to prevent monopolies within the agriculture industry? Is consolidation a limiting factor for Michigan farmers?
Kate Thiel | 517-679-5741
MFB: #62 Anti-Trust
AFBF: #421 Monopoly
Examining Consolidation in U.S. Agriculture
Agricultural Consolidation Causes and the Path Forward