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N.D. (NewsDakota.com) – NDFU President Mark Watne expressed disappointment today over the imminent consolidation of two global giants in the agricultural industry. The billion purchase of Monsanto, the world’s largest seed firm, by German-based crop chemical giant Bayer is expected to be approved by their respective boards next week.

“This merger further concentrates the ag supply market,” Watne said. “It puts market control in the hands of a few companies, giving them the opportunity to keep input costs high during times when farmers need costs to be reduced.”

Watne called for greater oversight by the Justice Department in its evaluation of mergers, which have been rapidly on the rise. The Bayer-Monsanto merger marks the fifth major deal in agriculture in the last year, preceded by an approval of the Syngenta/ChemChina acquisition and proposed mergers between Dow/DuPont, Potash Corp./Agrium and John Deere/Precision Planting LLC.

“Capitalism without regulation does not work,” Watne said. “We need oversight of corporations, especially in ag markets.” Six companies currently control 63 percent of the global seed market, 75 percent of the ag chemical market, and 95 percent of trait acres for corn, soybeans and cotton in the U.S.

“As farmers, do we want a few companies – domestic and foreign – determining the direction of research and competition in the U.S. marketplace? The answer is no,” he said, “because it’s truly not in our best interest. The fact is corporate consolidation in agriculture increases costs for farmers and consumers due to less choice and less competition.”