• Monthly
  • $25
  • $50
  • $100
  • $other
  • use PayPal

ONE WEEK TO DOUBLE YOUR DONATION!

A generous CounterPuncher has offered a $25,000 matching grant. So for this week only, whatever you can donate will be doubled up to $25,000! If you have the means, please donate! If you already have done so, thank you for your support. All contributions are tax-deductible.
FacebookTwitterRedditEmail

Monsanto-Bayer Merger Hurts Farmers and Consumers

Photo Source Jeanne Menjoulet | CC BY 2.0

The U.S. Department of Justice issued a stern warning in its lawsuit against the conditionally-approved mega-merger between Bayer and Monsanto in June.

The anti-competitive price effects of the merger would, according to the DOJ, “likely result in hundreds of millions of dollars per year in harm, raising costs to farmers and consumers.” The Justice Department warned that the combining of Bayer and Monsanto would reduce competition for vegetable seeds, likely driving up prices. Further, farmers might see prices for GMO cotton, canola, corn and soybean seeds increase, as well as price increases for herbicide and seed treatments.

After imposing some limited divestments on Monsanto, the DOJ approved this merger, enabling Monsanto to hide its controversial name brand while giving Bayer anti-competitive control over seeds, pesticides, farmers and consumers worldwide.

But the harm to consumers and farmers will still exist.

The DOJ is on the brink of essentially authorizing a monopoly. This is bad news for nearly everyone on the planet except Bayer and Monsanto executives and shareholders. Aside from a combined Bayer-Monsanto, only three other seed companies will be in the market manufacture and sell these products.

Farmers overwhelmingly object to the merger. Ninety-three percent of farmers expressed concern that the merger will harm independent farmers and farming communities. Farmers’ top three concerns were that Bayer/Monsanto “would use its dominance in one product to push sales of other products;” “control data about farm practices;” and that the merger will create “increased pressure for chemically dependent farming.”

Aside from the overwhelming number of farmers that have already voiced opposition to the merger, the DOJ has received petitions from over 1 million Americans urging the agency to block the merger. This month, thousands of farmers and Americans resubmitted comments urging the agency to reverse its harmful conditional approval. Iowa Attorney General Tom Miller joined a letter with the state attorneys general from California, Massachusetts, Mississippi and Oregon submitted a letter opposing the merger.

Bayer and Monsanto’s merger comes at a moment when powerful companies push farmers into dependence on their products, locking farmers into long-term contracts.  A consolidating food system means less choice for consumers.

“This mega-merger will give the company a stranglehold on the vegetable seed, cottonseed, corn and soy seed markets, which will only increase prices and put farmers’ livelihoods at risk,” noted Ben Burkett, a Mississippi vegetable farmer and past board president of National Family Farm Coalition.

For farmers, the merger will likely push up production costs. Farmers’ concerns are backed up by history, in which mega-mergers have diminished competition and options for both farmers and consumers while promoting more chemical-based farming — in turn harming our environment and health.

As seed and GMO companies have consolidated over the past 20 years. Much of that price increase comes from companies increasing fees for seeds as they genetically modify new traits into our food. The cost of these new technologies has exploded the price of seeds; between 32 and 74 percent of the price of seed for corn, soybeans, cotton and sugar beets in the United States and the European Union was estimated to reflect technology costs or the cost of seed treatments.

Farmers’ net profits continues to shrink. Reduced earnings have forced most farmers to take on second jobs; 82 percent of U.S. farm household income is expected to come from off-farm work this year, up from 53 percent in 1960.

As the Trump administration moves to give another handout to corporate agriculture, family farmers will pay the price.

Farmers aren’t fooled by claims that Monsanto divestments will make this merger beneficial and non-monopolistic. Consumers and policymakers shouldn’t be fooled, either. On our farms, in our soil and on our supermarket shelves, the merger of Bayer and Monsanto means fewer options for a cleaner, healthier and more farmer-friendly food system.

As the Department of Justice moves to make a final decision, they should stop this merger and save farmers and consumers from this new monopoly.

Jim Goodman is the Board President of the National Family Farm Coalition. Tiffany Finck-Haynes is Senior Food Futures Campaigner for Friends of the Earth.

bernie-the-sandernistas-cover-344x550
October 17, 2019
Steve Early
The Irishman Cometh: Teamster History Hits the Big Screen (Again)
Jonathan Cook
Israel Prepares to Turn Bedouin Citizens into Refugees in Their Own Country
Stan Cox
Healing the Rift Between Political Reality and Ecological Reality
Jeff Klein
Syria, the Kurds, Turkey and the U.S.: Why Progressives Should Not Support a New Imperial Partition in the Middle East
George Ochenski
The Governor, the Mining Company and the Future of a Montana Wilderness
Charles Pierson
Bret Stephens’ American Fantasy
Ted Rall
The First Thing We Do, Let’s Fire All the Cops
Jon Rynn
Saving the Green New Deal
Ajamu Baraka
Syria: Exposing Western Radical Collaboration with Imperialism
Ajamu Baraka
Syria: Exposing Western Radical Collaboration with Imperialism
Binoy Kampmark
A Coalition of Support: Parliamentarians for Julian Assange
Thomas Knapp
The Down Side of Impeachment
Harvey Wasserman
What Really Happened to American Socialism?
Tom Engelhardt
American Brexit
October 16, 2019
Patrick Cockburn
How Turkey’s Invasion of Syria Backfired on Erdogan
Chitrangada Choudhury – Aniket Aga
How Cotton Became a Headache in the Age of Climate Chaos
Jack Rasmus
US-China Mini-Trade Deal: Trump Takes the Money and Runs
Michael Welton
Communist Dictatorship in Our Midst
Robert Hunziker
Extinction Rebellion Sweeps the World
Peter A. Coclanis
Donald Trump as Artist
Chris Floyd
Byzantium Now: Time-Warping From Justinian to Trump
Steve Klinger
In For a Dime, in For a Dollar
Gary Leupp
The Maria Ramirez Story
Kim C. Domenico
It Serves Us Right To Suffer: Breaking Down Neoliberal Complacency
Kiley Blackman
Wildlife Killing Contests are Unethical
Colin Todhunter
Bayer Shareholders: Put Health and Nature First and Stop Funding This Company!
Andrés Castro
Looking Normal in Kew Gardens
October 15, 2019
Victor Grossman
The Berlin Wall, Thirty Years Later
Raouf Halaby
Kurdish Massacres: One of Britain’s Many Original Sins
Robert Fisk
Trump and Erdogan have Much in Common – and the Kurds will be the Tragic Victims of Their Idiocy
Ron Jacobs
Betrayal in the Levant
Wilma Salgado
Ecuador: Lenin Moreno’s Government Sacrifices the Poor to Satisfy the IMF
Ralph Nader
The Congress Has to Draw the Line
William A. Cohn
The Don Fought the Law…
John W. Whitehead
One Man Against the Monster: John Lennon vs. the Deep State
Lara Merling – Leo Baunach
Sovereign Debt Restructuring: Not Falling Prey to Vultures
Norman Solomon
The More Joe Biden Stumbles, the More Corporate Democrats Freak Out
Jim Britell
The Problem With Partnerships and Roundtables
Howard Lisnoff
More Incitement to Violence by Trump’s Fellow Travelers
Binoy Kampmark
University Woes: the Managerial Class Gets Uppity
Joe Emersberger
Media Smears, Political Persecution Set the Stage for Austerity and the Backlash Against It in Ecuador
Thomas Mountain
Ethiopia’s Abiy Ahmed Wins Nobel Peace Prize, But It Takes Two to Make Peace
Wim Laven
Citizens Must Remove Trump From Office
October 14, 2019
Ann Robertson - Bill Leumer
Class Struggle is Still the Issue
Mike Miller
Global Climate Strike: From Protest To Power?
FacebookTwitterRedditEmail