Nebraska Farmers Union (NeFU) took advantage of National Agriculture Week to salute America's traditional independent family farmers and ranchers. "Our traditional system of independently owned and operated family farm and ranch agriculture continues to be the envy of the rest of the world," said NeFU President John Hansen.
"Yet, that traditional system of agricultural food, fiber, and fuel production is being undermined with non-competitive markets. Our ag supply sectors and meat and grain processing sectors have become increasingly concentrated and dominated by foreign ownership. It is no wonder family farmers get squeezed out of business when they buy their agricultural inputs from monopolies and then sell their agricultural products to another set of monopolies" Hansen said.
NeFU pointed out that the four firm concentration ratios (CR4) used to measure market concentration show that agricultural markets have become a system of shared monopolies.
NeFU recent data showed the CR4 for seedcorn is 85%, soybean seeds 70%; the global herbicide and pesticide market 84%; and grocery retailers 65%. Only two companies manufacture nearly half of the farm tractors and equipment.
NeFU recent data showed that the CR4 for beef processing was 85%; 70% for pork process, and 54% for poultry processing. The CR4 for soybean crushing is 82% and wet corn milling is 84%.
Monopolies use their massive market share power to control and manipulate prices to their advantage. In the case of the food economy, monopolies underpay food producers and over charge food consumers.
"NeFU is asking our members and the entire rural community to get involved in legislative efforts to bring competition back to agricultural markets, and the entire U.S. economy. NeFU salutes President Biden's Competition Executive Order, Congressional ag market reforms, and National Farmers Union's "Fairness for Farmers" ag market reform campaign to bring competition and fairness to our nation's family farmers and ranchers.
"Our nation's traditional system of independent family farmers and ranchers are the most economically and socially beneficial way to produce our nation's food, fiber, and fuels. Thanks to the strong stewardship ethic of family farmers and ranchers they are also the best stewards of our nation's precious soil and water resources," concluded Hansen.
Photo Credit: nebraska-farm-bureau
Categories: Nebraska, General