The following commentary is by North Carolina Farm Bureau President Larry Wooten, first published in the Winter 2017-18 issue of NC Field and Family.
Mergers showcase the need for competitive choice
Progress has been a guiding principle of farming since before North Carolina’s first Commissioner of Agriculture Leonidas L. Polk established Progressive Farmer magazine in 1887, after serving in office.
With each new season of the year, it seems there is also a huge new merger or acquisition being announced in the name of progress. With the dizzying pace of consolidation in agribusiness, it seems appropriate to consider both sides of this double-edged sword. Is consolidation beneficial to farmers and consumers? Or do these legal strategies lessen competition to the point where too many options vanish?
According to industry analysts, these deals may result in increased efficiencies, crop yields and time savings, so we’re typically told this merger or that acquisition is ultimately for the benefit of farmers and consumers. Yet, is consolidation the only way, and the best way, to achieve progress?
What makes our economy prosperous? Is the answer independent, strong small businesses? Or, is it the consolidation of large corporations? Like most things in life, the truth is usually somewhere in the middle. Ideally, we’d like everyone to be prosperous. But one thing is certain: Farmers and consumers need choice!