FOR IMMEDIATE RELEASE
December 15, 2015
Contact: Andrew Jerome, 202-314-3106
WASHINGTON (December 15, 2015) – National Farmers Union (NFU) Board of Directors released a resolution opposing the proposed merger between agribusiness giants Dow and DuPont. NFU urged the Department of Justice (DOJ) to block the proposal, noting mergers along the agricultural supply chain have negative ripple effects in rural communities.
“NFU opposes the merger of Dow and DuPont for the damaging impacts it will have on farmers and rural America,” the resolution states. “NFU urges the Department of Justice to block this merger.”
NFU President Roger Johnson noted that allowing the companies to unite into a single entity would reduce the number of agriculture companies selling crop protection and seed lines – already a highly concentrated segment of the market – from six to five.
“This merger will result in less competition in the marketplace and fewer choices for farmers,” said Johnson. “The agricultural supply chain is already extremely consolidated resulting in increased prices for farmers, less innovation, and a high concentration of economic power and intellectual property held by just a few companies,” the resolution stated.
“NFU was founded on principles of robust competition in the marketplace and will continue to work to improve competition throughout the supply chain. This merger will result in increased pressure for the remaining players in the marketplace to merge in order to remain competitive with DowDuPont,” said Johnson. “Not only is this merger going to reduce competition, but it will create economic hardship throughout the country as thousands of people are laid off,” he said.
National Farmers Union has been working since 1902 to protect and enhance the economic well-being and quality of life for family farmers, ranchers and rural communities through advocating grassroots-driven policy positions adopted by its membership.