The Southeast Farm Press is reporting that the American Soybean Association (ASA) has requested that the US Department of Agriculture (USDA) and the US Department of Justice (DOJ) look into competition issues in the agriculture industry. As part of this exploration, the ASA submitted “initial comments” on December 30, 2009 to the DOJ.The major concern of the ASA is that the government is not keeping a close eye on the mergers and acquisitions taking place in the agribusiness world, and whether or not some of these deals amount to anticompetitive practices. The Southeast Farm Press quotes ASA President Rob Joslin as stating, "In recent years, we have seen increased consolidation in various agricultural industries. . . Many farmers have questioned why high levels of concentration have not been more thoroughly reviewed and analyzed by the federal government to determine their impact on competition."
The ASA identified to the DOJ, via letter, the four principals the association would like to see govern, or “guide,” agricultural competition. The principals are as follows: safeguard competition within domestic industries; support innovation and protect patent rights; follow patent expiration so growers could use generic competition (much like in the pharmaceutical industry) to reduce overhead; and subject foreign competition to the “same requirements and costs for accessing intellectual property as apply in the U.S.”
The DOJ has requested a comment from the association, so the ASA is distributing to its “producer-members” a survey to provide additional input.
Back in August, 2009, the DOJ and the USDA first announced that they will be working together on competition and regulatory issues in the agriculture industry. As part of this joint effort the agencies are holding a series of workshops around the country in which issues of competition and regulation will be discussed, and the workshops are open to the public.
The workshops are set to start this year, so we shall see if any knew concerns about competition and regulation in the agriculture industry emerge in 2010.
To read the Southeast Farm Press story click here.
To see the news release of the DOJ and USDA workshops click here.
Posted: 01/12/10
