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TOTM The DOJ has posted the transcript from the recent DOJ/USDA hearings on antitrust in agriculture here. I figured our readers might be especially interested in . . .
The DOJ has posted the transcript from the recent DOJ/USDA hearings on antitrust in agriculture here. I figured our readers might be especially interested in seeing Christine Varney’s comments (especially without having to slog through all 350 pages to find them!). I have bolded some of the most interesting parts of her comments.
Read the full piece here.
TOTM To expand on Geoff’s post about concentration in the seed industry, there has been a consistent line of discussion throughout the day raising the specter . . .
To expand on Geoff’s post about concentration in the seed industry, there has been a consistent line of discussion throughout the day raising the specter of monopoly and anti-competitive behavior, not only in seed but also in livestock. There are continual references to adverse price effects and limitations in choice for consumers and producers alike, followed by such tagged-on qualifiers as “if there are any”. The implication is that there is good reason to believe such effects exist and simply have yet to be discovered if we look.
TOTM A common theme throughout the day has been the declining number of seed companies–increasing concentration–and its effect. Except no one has talked about the effect. . . .
A common theme throughout the day has been the declining number of seed companies–increasing concentration–and its effect. Except no one has talked about the effect. Other than pointing to the structural change itself, no one seems to have any evidence relating to the effect of the change. One farmer at the open mic session (coincidentally one who had been sued by Monsanto) asserted that the move from 70 seed companies to 4 represented a relevant decline in competition. But he didn’t talk about any relevant effect; he had nothing to offer on declining return on investment–no evidence that the change actually affected his bottom line.
TOTM The morning’s panel of farmers represented a variety of perspectives, ranging from more reasoned to more reactionary. Among the ideas suggested… Read the full piece . . .
The morning’s panel of farmers represented a variety of perspectives, ranging from more reasoned to more reactionary. Among the ideas suggested…
TOTM Bill Northey, IA Ag Sec’y, sounds a bit like an economist (ah, turns out he has a degree in ag business and an MBA . . . .
Bill Northey, IA Ag Sec’y, sounds a bit like an economist (ah, turns out he has a degree in ag business and an MBA . . . ). Yes, price of seeds has gone up, but so has yield, and so has overall value. The issue, he says, is how to divide the surplus, and he suggests that it’s dividing the pie that drives farmer concerns. That’s not at all a surprise, but it’s also not much of an antitrust issue. Unless the pie could be bigger absent, say, Monsanto’s huge investment in seeds and the resulting relatively-concentrated market structure (and basing enforcement on the theoretical possibility of that counter-factual is a perilous enterprise, as Josh and I have suggested many times), this is just a question of pecuniary transfers. Sure, they matter a lot to the parties involved and there’s always an incentive to deputize the government to put a thumb on the scale of that dispute, but that’s not a matter of allocative efficiency, and not a matter for the antitrust laws.
TOTM As readers may know, Eric Holder was added to the workshop at the last minute (see the latest agenda here). So the day starts out . . .
As readers may know, Eric Holder was added to the workshop at the last minute (see the latest agenda here). So the day starts out with Holder and Vilsack, and they are joined by Varney and Tom Miller (the Iowa AG) and a host of other politicos including Senator Grassley and Congressman Boswell.
TOTM As Geoff noted, we’re stationed at the DOJ/USDA workshop to witness the goings on and provide some comments. US Secretary of Agriculture Tom Vilsack opened . . .
As Geoff noted, we’re stationed at the DOJ/USDA workshop to witness the goings on and provide some comments.
US Secretary of Agriculture Tom Vilsack opened this session with a laundry list of statistics concerning rural America and the agriculture sector. The statistics focused on national concentration ratios and national averages, which are tremendously deceiving for understanding the agriculture sector.
TOTM Later this week Mike Sykuta and I will be winging our way to Iowa on behalf of the ICLE to attend the first of the . . .
Later this week Mike Sykuta and I will be winging our way to Iowa on behalf of the ICLE to attend the first of the year-long series of DOJ/USDA Workshops on Agriculture and Antitrust Enforcement Issues. You can find the agenda for the first workshop, to be held Friday, March 12 in Ankeny, Iowa, here. Intrepid reporters, we, our plan is to “live blog” the event for those of you unable to attend. This first workshop, in addition to introducing the series, will focus on farming, which means seeds, which means the dispute between DuPont and Monsanto over licensing terms and everyone’s perennial favorite: industry concentration.
TOTM I wonder if that is on a per pinch basis? I refused to believe this is real language, from a real bill. But Professor Bainbridge . . .
I wonder if that is on a per pinch basis? I refused to believe this is real language, from a real bill. But Professor Bainbridge says it is — and doesn’t pull any punches in describing its drafter (or at least leading proponent) Assemblyman Ortiz in NY as an “officious pig and an ass.” But rest assured, Assemblyman Ortiz assures the good citizens of New York that the bill is really about giving consumers more choice, and “more control over the amount of sodium they intake,” and “the option to exercise healthier diets and healthier lifestyles.”
