During the depths of the economic crisis last year, the prices for many goods held steady or even dropped. But on American farms, the picture was far different, as farmers watched the price they paid for seeds skyrocket. Corn seed prices rose 32 percent; soybean seeds were up 24 percent.
Such price increases for seeds — the most important purchase a farmer makes each year — are part of an unprecedented climb that began more than a decade ago, stemming from the advent of genetically engineered crops and the rapid concentration in the seed industry that accompanied it.
The price increases have not only irritated many farmers, they have caught the attention of the Obama administration. The Justice Department began an antitrust investigation of the seed industry last year, with an apparent focus on Monsanto, which controls much of the market for the expensive bioengineered traits that make crops resistant to insect pests and herbicides.
Maui Land and Pineapple (MLP) 02-26-2010 14.02% GAIN from the open on the 12th to the close on the 19th open 3.28 02/12/2010 close 3.74 02/19/2010
activity on the 19th was extraordinary
CLICK for larger imageFor Neil Harl, distinguished professor emeritus in agriculture and economics at Iowa State University, a request to appear at a hearing March 12 in Ankeny on antitrust issues in the seed industry was compelling enough to lure him back from his winter retreat in Hawaii.
“It was tempting to stay away,” Harl said from Hawaii Tuesday after the announcement that he would appear on a panel at the day-long session that will examine competition in the seed industry. “But for years I have urged the Department of Justice and the Federal Trade Commission to be more aggressive about competitive issues in agriculture.”
“Now,” Harl continued, “we apparently have an administration that is willing to be more aggressive about these issues and I felt that I couldn’t turn down their request.”
The controversy over competition in the seed business exploded into the open last summer with acrimony and lawsuits between Monsanto and Pioneer Hi-Bred, attracting the attentions of the U.S. Department of Agriculture and the Justice Department.
Maui Land and Pineapple (MLP) 02-19-2010 14.02% GAIN from the open on the 12th to the close on the 19th open 3.28 02/12/2010 close 3.74 02/19/2010
activity on the 19th was extraordinary
