Minnesota boosts fight against Ag Industry concentration

By Scout Nelson

A noticeable shift in the agriculture landscape has taken place over the years. Previously diverse farms now specialize in key cash crops like corn and soybeans, aligning with a national trend. A more concerning change, however, is the rising consolidation in the industry. Local businesses, essential to the farming ecosystem, are being absorbed by bigger players.

For instance, local fertilizer and gas companies, once individual entities, are now part of larger conglomerates. This trend isn’t limited to these sectors. In the meat industry, a mere four companies hold sway over a vast majority of meat processing, ranging from 53% in chicken to a staggering 85% in beef.

This growing concentration caught the attention of Jonathan Kanter, the assistant attorney general for the antitrust division in the U.S. Department of Justice. His recent visit to Minnesota involved discussions with lawmakers and Attorney General Keith Ellison about ramping up antitrust enforcement. To bolster this effort, Minnesota increased funding to hire more attorneys specifically for this purpose.

In a notable move, Attorney General Ellison, along with attorneys general from 17 other states, filed a lawsuit against Amazon, accusing the giant of using its dominant position to stifle competition.

Complementing this, Kanter’s division filed a lawsuit against Agri-Stats, a data service company. The accusation? Agri-Stats allegedly facilitates price fixing among meat processors by providing them with sensitive information. Prominent companies like Cargill, Tyson, and JBS have been implicated in using this data to manipulate prices, especially in the poultry sector.

The antitrust division of the DOJ accused companies of suppressing wages in the poultry sector, based on detailed data distributed by Agri-Stats.

In the legislative arena, leaders from the Minnesota Farmers Union are collaborating to introduce bills aimed at curbing corporate dominance in the agricultural domain. Proposed legislation aims to define and regulate market dominance, increase penalties for antitrust law violations, and update price discrimination laws to be in sync with the federal Robinson-Patman Act.

With these combined efforts, Minnesota is setting a robust stance against monopolies, ensuring a fair competitive landscape for its agriculture sector.

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