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New data show increasing consolidation in Iowa's ag industry

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author Mark Moran, Producer-Editor

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Monday, September 23, 2024   

Advocates for a fair, sustainable, and healthy food system have released a report showing that nearly all of the corn seed in Iowa is controlled by just four companies.

Economists say concentrations that large can lead to market manipulation.

Farm Action's report shows nearly 90% of the corn seed in Iowa is controlled by Corteva and Bayer. AgReliant and Syngenta control the rest.

Farm Action President Angela Huffman said that kind of control and concentration is happening all the way from seeds to the consumer's plate, and she warns it makes market conditions ripe for abuse.

"This is the scenario in almost every sector of the food supply chain," said Huffman. "Seeds, fertilizer, farm equipment - beef, pork, and poultry processing - and retail groceries. Every one of those sectors I just named has upwards of 60%, to even 85%, of those markets controlled by four corporations."

The same type of consolidation is happening in ag operations where livestock are raised in large confinements - and manure runoff is known to damage the air, ground, and surface water in rural Iowa.

Operators have said they're always looking for more efficient and environmentally friendly ways to raise livestock.

Huffman argued that monopolies like this can lead to collusion, price fixing, and other types of market manipulation.

She and other advocates have called on lawmakers in Congress to address the issue in the pending Farm Bill.

"We're calling on the government to reclaim its role as an enforcer of our antitrust laws, and break up these dominant corporations," said Huffman, "in order to free our economy to start working for the people who are producing, processing and distributing our food."

The current Farm Bill, which was supposed to expire in September of last year, has been extended - but debate still hasn't started on a new version.




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