We hear a lot these days about the dangers of "Too Big to Fail" banks, but we should probably be hearing more about "Too Big to Fail" agricultural companies who have dominant positions in the marketplace.
This article at the Daily Yonder is the best survey of the consequences of Monsanto's stranglehold on corn and soy crops in the U.S. It presents what I think is an even handed well researched perspective on the issue. It is a selection of excerpts from a report titled, "Out of Hand: Farmers Face the Consequences of a Consolidated Seed Industry." Take note that this is a report from farmers to farmers.
Here are some key excerpts:
...four firms control more than 80 percent of beef packing; three firms
control about 70 percent of soybean crushing; and three firms handle 55
percent of flour milling...
The prevailing leader, the Monsanto Company, accounts for about 60
percent of both the U.S. corn and soybean seed market through
subsidiaries and technology (i.e., genetically engineered traits, such
as Roundup Ready and Bt) licensing agreements with smaller companies.
When looking specifically at genetically engineered traits in the U.S.,
more than 90 percent of the soybean and cotton acreage, and more than
80 percent of corn acreage, is planted with one or more of Monsanto’s
traits.
Monsanto manufactures glysophosphate (Round Up) and the portions of the article dealing with this chemical were the most eye opening.
If you are a corn, cotton, or soybean producer in the Southeast or
Mid-South, effects of glyphosate’s prolific use is seen in fields and
felt in pocketbooks. (Glyphosate is Round-up.) Glyphosate-resistant
weeds are now established in 19 states and deemed a serious economic
problem, at times adding more than $20 per acre. Weed specialists
refer to resistant weeds as a “train wreck” making their way across the
country...
Some of the worst resistance is found in pigweed (Palmer amaranth).
Resistant pigweed now infests hundreds of thousands of acres in the
Southeast. For example, 70 to 80 percent of Macon County, Georgia,
dubbed the “epicenter” of glyphosate-resistant Pigweed, is infested
with the weed, and farmers were forced to abandon 10,000 acres in
2007.151
Here are the recommendations from the report:
What Should Change
1. The Department of Justice should closely examine anti-competitive conduct in the industry.
Biotechnology
firms have merged with or acquired a significant number of competitors,
and though some have drawn antitrust scrutiny, no meaningful action has
been taken to deal with anti-competitive players. Farm commodity prices
are falling and will not sustain escalating seed prices, which continue
to put these firms’ primary customers – American farmers – at a
disadvantage. Independent seed companies say that the licensing
agreements they sign to access GE traits unreasonably restrain
competition. Because independent seed companies are important
distribution channels for new seed varieties, this market needs to be
protected from predatory practices.
2. Change patent law and establish Plant Variety Protection Act as sole protection.
By
establishing the PVPA as the sole means of intellectual property
protection over plants, farmers could regain the right to save seed and
the right to choice, as plant breeders would have better access to
plant genetics that are currently off limits to innovation because of
patents.
3. Change the Bayh-Dole Act (Patent and Trademark Law Amendments Act).
The
Bayh-Dole Act as applied to seed patenting and agricultural innovations
should be re-evaluated and reformed to prohibit mandates for seed
patenting and exclusive licenses relating to technologies and
innovations developed through publicly funded research, because such
patents and exclusive licenses are reducing farmer choice, reducing
researcher access and directly contributing to this increasing trend of
monopoly power, higher prices and/or other anti-competitive practices.
Recent Comments