“The proposed merger would create a powerful duopoly between Dow-DuPont and Monsanto,” the organizations added. “Together, the two companies would control 76% of the market for corn and 66% of the market for soybeans, giving them the power to charge farmers higher prices and effectively decide which seeds farmers could plant.”
Two farmers quoted in the letter to the DOJ argued, “We need more competition to keep prices down,” and “We don’t like to see more consolidation; it means higher [costs] for farmers.”
“Seed costs are the highest input expense for farmers,” explained NFU president Roger Johnson. “We have seen time and again that consolidation and market restructuring has increased the cost of crop inputs. In a lagging farm economy with multi-year trends of low commodity prices, additional cost increases for crop inputs could cripple a lot of family farms in this country.”
Executives at both corporations seem highly optimistic that the DOJ would approve the mega-merger deal, as last week they announced the chief executives who would helm the newly created company. According to the Wall Street Journal, the deal is expected to close in the second half of 2016.
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