Rep. Johnson Calls for Hearing on 'Unprecedented Wave of Consolidation' in the Agricultural Industry

WASHINGTON, D.C. – Today, Rep. Hank Johnson (GA-04), Ranking Member of the Judiciary Subcommitee on Regulatory Reform and Antitrust Law (RRCAL), requested a hearing to address the alarming and unprecedented wave of consolidation in the agricultural sector:

“The proposed DowDuPont, Bayer-Monsanto, and ChemChina-Syngenta mergers are some of the most significant developments in modern industrial history,” Johnson stated. “Our nation’s farmers and consumers deserve more and better choices, not less innovation and higher prices. I believe that a hearing is necessary to provide additional oversight into this issue. A close examination of these transactions by the Subcommittee on Regulatory Reform, Commercial and Antitrust Law would offer a productive opportunity to discuss consolidation in these markets generally and whether potential reforms or stronger enforcement are necessary to encourage competition.”

Rep. Johnson’s letter to Judiciary Chairman Bob Goodlatte is below.

September 29, 2016

The Honorable Bob Goodlatte
Chairman
Committee on the Judiciary
U.S. House of Representatives
2138 Rayburn House Office Building
Washington, DC 20515

Dear Chairman Goodlatte,

I write to request a hearing to address the alarming and unprecedented wave of consolidation in the agricultural sector. The proposed DowDuPont, Bayer-Monsanto, and ChemChina-Syngenta mergers are some of the most significant developments in modern industrial history and may have devastating repercussions for our Nation’s farmers and consumers.

Today, only six firms—Monsanto, Syngenta, Bayer, DuPont, Dow and BASF—operate the majority of the agricultural biotechnology, seed, and chemical sectors.[1] I am concerned that the proposed mergers of DowDuPont, Bayer-Monsanto, and ChemChina-Syngenta would result in even more consolidation in these markets, undermining innovation and resulting in fewer choices and higher prices for farmers and consumers.[2] Individually, these proposed mergers would likely reshape these industries in fundamental ways with far-reaching and indeterminable consequences. Collectively, these transactions are almost certain to reduce significantly competition. As Senate Judiciary Chairman Chuck Grassley (R-IA) recently observed, this industry is “on the precipice of a significant structural transformation” as the waves of consolidation in these markets have “become a tsunami.”[3]

American farmers and consumers deserve more and better choices, not less innovation and higher prices. I believe that a hearing is necessary to provide additional oversight into this issue. A close examination of these transactions by the Subcommittee on Regulatory Reform, Commercial and Antitrust Law would offer a productive opportunity to discuss consolidation in these markets generally and whether potential reforms or stronger enforcement is necessary to encourage competition.

If you have any questions concerning this matter, please contact my subcommittee counsel, Slade Bond, at (202) 225-6906.

Sincerely,

Henry C. “Hank” Johnson, Jr.
Ranking Member
Subcommittee on Regulatory Reform,
Commercial and Antitrust Law
Committee on the Judiciary

###