Wisconsin Ag Connection - WFU Supports Pocan's Ag Merger Moratorium Bill

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WFU Supports Pocan's Ag Merger Moratorium Bill
Wisconsin Ag Connection - 09/17/2018

Legislation that would place a temporary moratorium on mergers and acquisitions between large farm, food and grocery companies has the support of one of the state's largest farm organizations. The Wisconsin Farmers Union says it is backing Rep. Mark Pocan's bill that aims to halt the mega-mergers within the agribusiness, food manufacturing and grocery industries for at least 18 months.

"It is time to hit pause on these mega-mergers and the growing trend of vertical integration in U.S. agriculture," said WFU President Darin Von Ruden. "The U.S. is losing farmers at an alarming rate, and we're seeing a lack of competitive markets in seed, agro-chemical and many other ag sectors, thanks in no small part to an unprecedented number of mergers that have swept across the nation's food and agriculture industry."

Pocan, a Democrat from Madison, introduced the 'Food and Agribusiness Merger Moratorium and Antitrust Review Act of 2018' last week. Specifically, the measure calls for a moratorium on food and agribusiness mergers and the establishment of a federal commission to study ways to strengthen antitrust oversight in agricultural sectors.

Van Ruden says over the past few years, chemical and seed company acquisitions and mergers have allowed just three companies to control two-thirds of the crop seed and nearly 70 percent of agriculture chemical markets.

"These mergers hurt farmers who are facing fewer options and rising input costs amid declining farm incomes," he said. "Net income for U.S. farmers has dropped by nearly 50 percent since 2013."

WFU members were in Washington, D.C. last week for the National Farmers Union Fly-In, where they also presented Pocan with its Golden Triangle Award.

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