A recent acquisition announcement by the nation's largest grain exporter was just one of the latest in a string of mergers and acquisitions that has raised this senator's eyebrows and prompted concerns by many farmers about the future of American agriculture. Consolidation seems to be the name of the game in the 1990's food chain. Corporate mergers in the seed, chemical, meatpacking, grain, banking and transportation industries affect business down on the farm and ripple to Main Street.
Healthy competition keeps the marketplace honest.
That's why the antitrust divisions at the Justice Department or the Federal Trade Commission must weigh the economic impact and potential for reduced competition before a substantial corporate acquisition can move forward. If competition were not safeguarded, consumers would reel from sticker shock. That goes for grocery shoppers, airline passengers, car buyers and farmers. For instance, if only one seed brand or grain transporter existed on the market, farmers would have less choice and would ultimately pay more for these goods and services. As farmers struggle with the downturn in the farm economy, the merger trend in the agriculture industry deserves careful analysis.