In Senate Judiciary Committee Hearing, Durbin Questions Fertilizer And Seed Companies About High Costs For Illinois Farmers

In Senate Judiciary Committee Hearing, Durbin Questions Fertilizer And Seed Companies About High Costs For Illinois Farmers

In today's Senate Judiciary Subcommittee hearing, Durbin advocated for Illinois farmers, telling the fertilizer industry "your prices are killing them."

WASHINGTON - U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee and a member of the Senate Agriculture Committee, questioned witnesses in today's Senate Judiciary Committee hearing entitled "Pressure Cooker: Competition Issues in the Seed & Fertilizer Industries." Durbin pressed witnesses to acknowledge that farmers are harmed by the series of mergers and acquisitions that have led to high costs and hindered agricultural innovation.

During his questioning, Durbin asked Corey Rosenbusch, CEO of the Fertilizer Institute, for his perspective on how the federal government should exercise antitrust enforcement in the agricultural sector.

Mr. Rosenbusch replied that the U.S. "need[s] a strong domestic fertilizer industry to compete in the global marketplace, especially when you are looking at countries that are often state-owned enterprises producing fertilizers." Mr. Rosenbusch asserted that both FTC and USDA had properly reviewed the mergers, stating that supply and demand had not been interrupted by the mergers.

Durbin pushed back on Mr. Rosenbusch's claims, emphasizing that farmers have been hurt by the mergers because they are now paying higher prices for necessary equipment and seeds while struggling to compete in the global marketplace.

"The farmers who are buying your products say you're killing them. You've consolidated so they have few 'take-it-or-leave-it' choices. Your prices are killing them. When you say that you're competitive globally, it doesn't help the farmer in Illinois, and I wouldn't know that the global market is competitive," Durbin said.

Durbin also questioned witnesses about a series of mergers and acquisitions that resulted in the "Big 3" of companies that dominate the agricultural seeds sector-Bayer, Corteva, and Syngenta. A similar trend has produced a "Big 3" in the fertilizer sector-Mosaic, Nutrien, and CF Industries. As a result of the mergers, farmers are paying more for seeds and equipment while agricultural innovation has stalled out.

"Should antitrust enforcers at the FTC and Department of Justice (DOJ) have done more to block these mergers that produced the Big 3 in the seed and fertilizer sectors?" Durbin asked Dr. Diana Moss, Vice President and Director of Competition Policy at the Progressive Policy Institute.

Dr. Moss explained that the mergers have harmed farmers more than they have helped the industry. She noted that the agriculture industry is facing bottlenecked supply chains and a loss of resiliency and stability.

Durbin also advocated for strong federal support for agricultural research, especially as the Trump Administration has threatened critical seed and genetic research, like that done at the University of Illinois Soybean Germplasm Bank.

"Since the 1930s, U.S. government-funded agriculture research has directly helped to boost our farm output by 170 percent. Today, most agriculture research in the U.S. is funded by large private-sector corporations, not the government. Agriculture research funded by the U.S. government has plummeted in the past 30 years, while Chinese government investment in agriculture research has risen eight times, surpassing the U.S. 10 years ago. Today, China is the world's biggest funder of government-funded farm research," Durbin said.

"The Trump Administration and the 'DOGE cowboys' want the USDA to close and consolidate a federally-funded laboratory at the University of Illinois-the Soybean Germplasm Collection-which is a genetic seed bank whose scientists, since the 1940s, have cured soybean diseases, improved soybean yields, and developed new varieties and uses, again creating new markets for farmers. If this lab and its resources are closed or diminished, there is only one other remaining lab. Any guess where it is? China," Durbin said.

Durbin then spoke to John Latham, President of Latham Quality, Inc., how federal investment in agricultural research has supported his business, which sells high-quality seeds.

"Mr. Latham, that kind of federal research has to be part of your calculation as well when you talk about innovation," Durbin said to Mr. Latham.

Mr. Latham affirmed that investing in agricultural research at public universities would improve America's ability to compete globally.

Video of Durbin's questions in Committee is available here.

Audio of Durbin's questions in Committee is available here.

Footage of Durbin's questions in Committee is available here for TV Stations.

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