Consolidation and reduced competition have been growing trends in the U.S. economy for years now, and it is the central reason why Centrist Democrats of America launched an antitrust effort.
Whether it is in Big Tech, Defense or Agriculture, we are committed to educating decision makers and encouraging them to take a hard look at the consequences of monopolies and anti-competitive practices. These trends are hurting working-class Americans, and we urge the Biden administration to stand-up for economic fairness and stricter enforcement of antitrust laws.
One important sector of the economy that has been hit hardest by this consolidation trend is the farming industry. According to a 2018 report from the USDA, “Consolidation of acreage and production has been persistent, widespread, and pronounced in crop production.”
As former Congressman David Phelps pointed out in his recent op-ed, “consolidation is siphoning out profits from farmers and livestock producers. According to the National Farmers Union (NFU), just four firms control 88 percent of corn seeds and 80 percent of soybean seeds. The same American farmers planting those seeds must then turn around and sell their products to only four companies that process more than 85% of those commodities.”
The Biden administration has promised to enforce antitrust regulations to reverse these growing trends of anti-competitiveness. The President has a real opportunity to show farmers and everyday Americans that he can deliver a more fair and just economy. As an organization, CDA will continue to point the Administration in the right direction to get the economy working for the middle-class.