Rep. Mark Pocan, a Wisconsin Democrat, introduced a bill yesterday that would impose a temporary moratorium on large agribusiness and food industry mergers. The bill is a companion to legislation introduced last month in the Senate by New Jersey’s Cory Booker.
“Out-of-control consolidation has enabled agricultural firms to control prices at every stage of the food chain, from farming to distribution, and Congress must do more to allow local farmers and food systems to be competitive, while establishing greater market transparency for the American consumer,” said Pocan in a statement. “Today, corporate profits are soaring, but many middle-class families and farmers continue to struggle. Establishing a moratorium on ag mergers will not only strengthen our antitrust laws, but it will also expand economic security and opportunity to more of our communities.”
The bill would also establish a commission to study the effects of consolidation on the agriculture and food sectors. It was co-sponsored by Democratic representatives Rosa DeLauro of Connecticut, Keith Ellison of Minnesota, Marcy Kaptur of Ohio, Ro Khanna of California, and Chellie Pingree of Maine.
“The unprecedented merger-mania in food and agribusiness industries has been highly profitable for the industry, but has driven down the prices farmers receive, lowered wages for food workers, eliminated choices for both farmers and consumers, and fueled the environmental and public health impacts of factory farms and chemical agriculture,” said Wenonah Hauter, executive director of Food & Water Watch, in a statement endorsing the bill. “Ag mega-mergers also hit people in the pocketbook: Since 2008, real consumer food prices have risen about three times faster than typical wages.”
Mergers and acquisitions in the food and agriculture sectors have reached peak heights in recent years. Three mega-mergers in the seed and agrochemical industry have shrunk the number of dominant players in that sector to just three. A series of watershed deals in grocery retail, including Amazon’s high-profile acquisition of Whole Foods, have shaken traditional grocers.