Since December, six major agriculture companies have agreed to merge, including Dow and Dupont. The agriculture industry has since come under criticism for the “tsunami” of huge corporate mergers.
Now, as USA TODAY reports,industry executives are insisting the industry's flood of merger activity will not raise prices or stifle innovation. Still, members of the Senate Judiciary Committee remain skeptical of the consolidation. They believe fewer market players means less choices for farmers and consumers. However, the Senate Judiciary Committee has no authority to block the mergers.
Chuck Grassley is an Iowa Republican and the chair of the U.S. Senate Judiciary Committee. He said, “Concerns have been raised about the loss of head-to-head competition of these transactions, and whether they will reduce incentives to invest in research and development.” Executives responded that consolidation will create companies that are more effective in an evolving agriculture market than as stand-alone businesses.