AMES, Iowa — Perpetuating the disturbing consolidation trend in the agriculture sector, the U.S. Department of Justice today approved the $142 billion merger of Dow Chemical Co. and DuPont Co. The deal will create the largest agriculture biotechnology and seed firm in the United States.
“Farmers are hurt by today’s decision,” said Iowa Farmers Union (IFU) President Aaron Lehman. “Less competition will ultimately mean less innovation, fewer choices, and higher prices. That’s never a good thing, but it is especially harmful when farm income is already expected to drop for the fourth consecutive year.”
“The decision is extremely disappointing and shows a lack of understanding of the issues facing rural America. The combination of Dow and DuPont, coupled with other pending mergers, leaves family farmers with less competition and choice in the seed and agrichemical sectors. This drives up costs for farmers’ inputs, and it reduces the incentive for the remaining agricultural input giants to compete and innovate through research and development.”
“Farmers rely on the integrity of a marketplace that encourages competition and creativity. Allowing this merger to move ahead only rewards the misuse of economic clout.”
— Iowa Farmers Union
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