LEXINGTON, Ky. - Decades of unchecked mergers in the agricultural industry have left many farmers struggling, and rural advocacy groups says a proposal in Congress aims to change that.
The "Competition and Antitrust Law Enforcement Reform Act" would give agencies like the Federal Trade Commission more funding and resources to put a stop to unfair consolidation, and strengthen the rules against monopolies.
Tyler Whitley - Manager of the Challenging Corporate Power program for Rural Advancement Foundation International USA - said current antitrust law has left many farmers at the whim of a handful of major corporations.
He said there's not a lot of room for them to select a different supplier or manufacturer to get the best deal.
"So for a farmer, there may be limited options on where you can buy your seeds from, where you can buy your fertilizer from," said Whitley. "And I don't mean the individual point-of-sale; what I mean is the producer."
One 2016 study estimated that the mergers of Dow with DuPont, and Bayer with Monsanto, would mean an initial jump of more than $1,000 in corn-seed costs for the average U.S. farmer, in the first year alone. But opponents of stricter antitrust laws say allowing free-market competition benefits consumers.
Whitley pointed out big-ag mergers trickle down to most Americans at the grocery store.
"The number of manufacturers has gotten smaller and smaller, especially as some of these companies buy up other ones," said Whitley. "You know, if you're walking down the aisle of your grocery store, and you're looking at frozen poultry, for example, you look down the aisle and you see 20 some-odd brands, but what you probably don't realize is that, of those 20 brands, they're probably owned by four individual companies."
Whitley said he believes the bill is the foundation needed to help growers get the best prices for their products, and continue to innovate in the face of the climate crisis and other challenges.
"This bill will go a long way toward policing some of these mergers that have led to so few options for either buying products or selling products," said Whitley, "especially in rural economies."
The same bill would have implications beyond the ag industry, including for tech monopolies like Facebook, which is currently being sued by the Federal Trade Commission and several states for what they claim are antitrust practices.
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Advocates are drawing attention to systemic racism in farming across North Carolina and the nation.
The National Farm Worker Ministry is hosting its annual Harvest of Justice program to shed light on the adverse effects faced by farmworkers because of the absence of protective policies for their wages, land and safety.
Julie Taylor, executive director of the National Farm Worker Ministry, emphasized the issues stem from outdated labor laws dating back to the 1930s, which unjustly exempted farm and domestic workers.
"Those groups were excluded, and to think in terms of the fact that even today they're on the books," Taylor explained. "If they are organizing, they are not protected from retaliation, the way in which other workers in this country are."
Taylor pointed out the lack of protection has led to other negative consequences. She highlighted the historical loss of land experienced by BIPOC farmers, the increased exposure to pesticides in Black and brown neighborhoods, and the ongoing fight against labor exploitation and modern-day slavery.
North Carolina is home to more than 50,000 farms, and farmworkers are facing challenges such as nicotine exposure, a lack of housing, and poor field conditions.
Rose Green-Flores, director of communications for the National Farm Worker Ministry, said to combat mistreatment, the ministry uses a proactive approach, starting with raising awareness in communities. She emphasized their goal is to empower people, regardless of their location, by helping them understand they have the power to make a difference.
"One of the big ones would be legislation," Green-Flores stressed. "One of those pieces would be supporting telling Congress to pass the Fairness for Farm Workers Act, which amends the Fair Labor Standards Act to provide overtime and additional minimum-wage protections for farmworkers."
She added another important aspect in their efforts to support farmworkers is educating major companies and calling on them to join the Coalition of Immokalee Workers Fair Food program, which would help enforce labor standards.
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The current Farm Bill expires Sept. 30 and with a looming government shutdown, reauthorization does not appear imminent.
Wisconsin farm groups say most of the effects would not be felt right away, but there is still uncertainty in the air. The Farm Bill, which is updated every five years, covers a range of agriculture policies like crop insurance, and funds government food assistance.
Michelle Ramirez-White, policy coordinator for the Wisconsin Farmers Union, said December and January are the more concerning deadlines if action does not materialize. In the meantime, she said they will keep fighting for provisions to establish market fairness within agriculture.
"We just see these issues of competition needing to be addressed in a more holistic and composite way," Ramirez-White contended.
As for timelines, she warned dairy prices would see an upheaval if a new bill is not approved by the end of this year. Ag experts said it would be a major blow to consumers and exports. The Farm Bill has generally enjoyed bipartisan support, but some GOP House members are pushing hard for spending cuts, complicating spending talks, including for agriculture.
Margaret Krome, policy program director at the Michael Fields Agricultural Institute, said they have a mixed outlook on the state of the Farm Bill. She noted thanks to the Inflation Reduction Act, some key conservation programs are reauthorized for several years. Other programs, such as providing grants to farmers to bring their products to market, would at least still operate on autopilot.
"They will, maybe not be all able to sign contracts, but they will be able to continue to function up until the end of December," Krome pointed out. "But we are watching to make sure that they get implemented properly."
Krome added the Institute is worried about talks in Congress to essentially boost commodity payouts for a limited group of farmers elsewhere in the country. She warned advancing the proposal would come at the expense of broader conservation funding.
Disclosure: The Michael Fields Agricultural Institute contributes to our fund for reporting on Hunger/Food/Nutrition, Rural/Farming, and Sustainable Agriculture. If you would like to help support news in the public interest,
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Rural advocates are supporting the Farmland for Farmers Act in Congress. It would restrict the amount of Iowa farmland large corporations can own, and it is in response to foreign and domestic corporations buying up land and then renting it out.
As farmers start to retire, more than 40% of U.S. farmland will change hands in the next decade, but it might not wind up with young Iowans who want to farm.
Hannah Breckbill, co-farmer at Decorah-based Humble Hands Harvest in northeast Iowa, said out-of-state corporations buy the land and rent it to the highest bidder, keeping it out of local hands and driving land prices sky-high.
"Land prices have been going up and up and up," Breckbill observed. "In my career as a farmer -- which is not very long, only about a decade -- I've seen land prices more than double. And we need farmers to be on the ground, owning land."
Breckbill pointed out more than 50% of Iowa's 30 million acres of farmed land is rented and not locally owned. The Farmland for Farmers Act would restrict corporate investment, and supporters hope it is adopted as part of the new Farm Bill, scheduled to be debated this month.
Breckbill also helps overwhelmed young farmers find land in Iowa, and being a young farmer herself, has firsthand experience with navigating the daunting land acquisition process. She believes Iowa's farmland should be making a natural transition into the hands of beginning local farmers.
"We've gotten jobs on farms. We know how to farm. We have the skills. We have the knowledge. We have the capacity. We have the energy," Breckbill emphasized. "We just don't have the capital to be able to access the land."
The National Family Farm Coalition, which supports the Farmland for Farmers Act, released a fact sheet showing the average price of an acre of farmland in the U.S. has climbed to $3,800, the highest it has been since the 1970s. The Act has not yet received official support from Iowa's members of Congress.
Disclosure: The National Family Farm Coalition contributes to our fund for reporting on Environment, Rural/Farming, Social Justice, and Sustainable Agriculture. If you would like to help support news in the public interest,
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