West Texas farmers hesitant ahead of major ag merger

West Texas farmers hesitant ahead of major ag merger

Posted: Updated:
LUBBOCK, Texas -

There could be some major shifts in the agricultural industry in the next few years. Bayer and Monsanto Company two of the largest Ag firms in the world are in the planning phase to merge in an effort to boost both their resources and industry innovation.The German seed distributor intends to roll up Monsanto's Ag chemical powerhouse. 

"Our greatest fear is the seed and other technology might be priced as what will the market bare," said Alan West, cotton farmer who is finishing his twenty first crop season year. "You know how much can we charge for these services, for this technology and how much will farmers pay." 

Any time there's talk of agricultural firms merging it always draws some sort of hesitation from farmers. When the discussion began a few years ago producers made sure to make federal regulators aware of their thoughts.

"We wanted to make sure the Department of Justice did their due diligence," said Steve Verett, Vice President of the Plains Cotton Growers. "We want to make sure that competition would remain once the merger took place." 

If the buyout goes through, there would only be three firms left in the market. The Bayer proposal followed four other companies consolidating just a few years ago. A recent Texas A&M study predicted that the price of cottonseed would increase by about 20% if this new merger was to happen. The European Commissioner for Competition does not plan to make a decision until next year. 


 


 


 

Powered by Frankly