Lawmakers Learn About a Lack of Competition

A Banking, Housing and Urban Affairs subcommittee focused on lowering food prices and consolidation within the ag sector. Farm Action Chief Strategy Officer Joe Maxwell said consolidation is a threat to farmers and consumers. “Today, four corporations control 85 percent of beef processing; at least 67 percent of pork processing; 60 percent of poultry; 75 percent of the nitrogen fertilizer; two companies supply all of the potash for North America. Two seed companies account for 72 percent of corn and 66 percent of soybeans.” Maxwell said a 2019 fire at a Kansas beef plant idled six percent of beef processing capacity. “Using the fires as an excuse, they were able to push down the price they paid farmers and raised the price they charge grocers,” said Maxwell. “The result was the largest recorded spread between what farmers were paid and what consumers had to pay.”  Subcommittee Chair Elizabeth Warren said the pandemic gave big food companies and excuse to ramp up grocery prices. With the market shock behind us, Warren said these companies are keeping input prices high because they have little competition.