NY ag groups urge AG to investigate Bayer-Monsanto merger

Agriculture groups in New York are urging Attorney General Eric Schneiderman to investigate the anticipated Bayer-Monsanto merger, saying that it would hurt farmers and the state's agriculture industry.

The German chemical company Bayer is planning to take over seed and weed-killer giant Monsanto in a $66 billion deal that would create one of the world's largest agriculture conglomerates. The acquisition will likely be completed early next year and is among a series of major agribusiness mergers announced over the last few years.

"We believe that this merger will have devastating impacts on New York, and we request that the New York Attorney General join the antitrust investigations of the merger," five organizations wrote in a 10-page letter sent to Schneiderman's office in July. The letter was shared with reporters last week. "The New York Attorney General can play an important role in protecting the farmers, consumers, and economy of New York and the rest of the nation by joining the investigating federal agency and State Attorney Generals."

The organizations include Friends of Earth, the Northeast Organic Dairy Producers Alliance, Northeast Organic Farming Association of New York, Down to Earth Markets, Regional Farm and Food Project and Doan Honey farm in Hamlin. The name of the association was spelled incorrectly in the letter.

They say that the merger would decrease competition in the seed and agrochemical markets, further concentrate power in an already consolidated market and raise seed prices for farmers already affected by falling crop prices while simultaneously limiting their seed choices. They also worry that lack of competition would reduce innovation.

The groups hope to meet with the attorney general's office to discuss the merger.

"We have to realize that this is going to change the face of agriculture," said Liz Bawden, president of the Northeast Organic Dairy Producers Alliance. "Innovation is going to be stagnated from this ... It's a very scary road to go down."

Further consolidation of power is also detrimental to family-owned farms, which make up a big portion of New York's farms, Bawden said. Both conventional and organic farmers also want to know what their neighbors and colleagues are planting in terms of genetically modified crops, she said. Monsanto is the largest global supplier of genetically modified seeds.

"Monopolies are never good for family farms, which are struggling," Bawden said. "A large corporation that can set its own policies and its own prices and doesn't have really any competition is worrisome."

The merger could also affect consumers.

"It is highly improbable the merging parties can clearly demonstrate that the merger will lead to significant efficiencies," the organizations wrote in the letter. "In fact, history shows us that it is likely that the merger will continue to trend of increasing prices for consumers."

Beyond facing higher prices, consumers could have fewer options at the grocery store, said Jim Doan, owner of Doan's Honey Farm in Hamlin.  Because they would be beholden to the prices set by the company, which could choose which seeds to promote, farmers wouldn't be able to develop as many varieties of crops, he said.

"It's a big deal," Doan said. "It's more than disturbing."

miszler@timesunion.com • 518-454-5018 • @madisoniszler