AFBF: Dow/DuPont merger carefully scrutinized by DOJ
The Chief Economist of American Farm Bureau (AFBF) says the antitrust approval for the Dow and DuPont merger comes with careful scrutiny by the Department of Justice, which is making both companies divest of some of their businesses. Bob Young tells Brownfield Ag News that AFBF understands the drivers for consolidation in the ag industry, “In a perfect world, we’d all like to have more competitors than fewer. But, I think we also recognize that we’re at a time where the farm economy is contracting a little bit and so the revenue stream available to our input suppliers is down.”
And, Young says there are other constricting factors affecting ag seed and chemical companies, “When you look at the regulatory environment that these folks have to operate in. Just the cost that is incurred to bring new products to market whether they be a new seed trait or a new chemical, or whatever, it just takes a lot of money and a lot of time.”
Young says there are concerns about higher prices because of the six leading ag chemical and seed companies that, if fully approved, would become three companies. He tells Brownfield that three, however, is far better for farmers than just one.
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