Concentrated Economic Power Threatens Public Good

Concentrated economic power is as great a threat to the common good as concentrated political power is to democracy. In practice, the two go hand in hand. When a big company gains the power to dominate markets and dictate the terms of trade, political muscle almost always comes with it. Very often, political muscle helps create the economic advantage through favorable public policies.

The big seed companies are the economic powers in crop agriculture today. They have grasped biotechnology and used it to dictate the terms of trade to their benefit. No other agribusiness sector has matched their success in increasing market share while aggressively raising prices – even creating new “technology fees” for the right to use their seeds.

Their political power was on recent display when Monsanto swept into Montana in response to proposed legislation requiring a court order or permission before going on farmers’ land to test their crops for patented genes. Company representatives and local allies took six of nine Agriculture Committee members to dinner at a premier Helena restaurant the night before the public hearing. The bill – which protected property and due process rights we normally take for granted – died.

Favorable policy helped establish seed industry economic power. Weak antitrust enforcement enabled big companies to buy up smaller rivals with promising seeds. Court rulings and legislation that allowed seed patenting created effective monopolies on valuable seed traits.

Finally, USDA and land grant colleges focused billions of dollars of tax-supported research on developing biotechnology, leading to control of valuable traits by individual seed companies. For example, the University of Nebraska developed soybeans resistant to the herbicides Banvel® and Clarity®. But rather than making the trait widely available, it licensed exclusive control to Monsanto for tens of millions of dollars.

Monsanto already controls the primary patents for crops resistant to the herbicide Roundup®, planted to most U.S. soybean acres and increasing numbers of corn acres. But as more weeds develop resistance to the herbicide, Monsanto needs seeds that tolerate additional herbicides to maintain its dominance.

The worst result of the over emphasis on biotechnology is the research not done on farming systems that increase farmers’ economic leverage by enabling them to use their management to cut input cost. There has been little research to develop faster growing varieties suitable to weed control with less herbicide or to develop cover crops that don’t take much water from the soil but do boost soil fertility, suppress weeds, and conserve and improve soil.

The publicly-funded research system has lost sight of its purpose for being – to do research that serves the public and advances the common good.

Agree or disagree? Send your comments to Chuck Hassebrook, chuckh@cfra.org or 402.687.2103 x 1018.

Comments

Concentrated Economic Power

Chuck Hassebrook's article, "Concentrated Economic Power Threatens Public Good" goes to the very heart of rural America's problems, as well as most other problems associated with our disappearing Jeffersonian widespread ownership models. Multi-national mega-corporations are poised and well on their way to assuming the role of government all over the world. The kids aren't going to like it!

"Concentrated Economic Power...."

My Father, Paul Stewart, was very active in the development of hybrid seed corn in Nebraska in the 1930-60 era. While he urged the U of N to invigorate the State's research breeding, he continually campainged for the commercial seed corn companies as the best way to get farmers to adopt hybrid seed corn. In this he was most successful. However, it is my judgement that he would now agree with your premise that seed patenting has led to the abuse of plant breeding law. I think the major Land Grant Colleges need to consider the re-invorization of "State Certified Seed" and re-introduce this competitive marketing avenue.

Farmers bear most of the

Farmers bear most of the responsibility for creating Roundup resistant weeds, by saving money using below-label rates of herbicide. This sort of selfish behavior does not get as much attention as whines about selfish seed companies. If you don't think the seed is worth it, don't buy it. Simple.

concentrated power

People try to accumulate control over concentrated wealth, like political power, either with intentions to make the world better or to exploit it for selfish reasons : florida property investment .

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