Merger and Antitrust Issues in Agriculture

A sustained period of low farm prices has generated legislative interest in the effect of concentration and consolidation on U.S. agriculture. Questions have been raised about the federal government's role in pursuing cases of unfair competition or violations of antitrust laws. Legislative interest has risen because, while regulations target business practices, important issues associated with concentration and consolidation may not be adequately addressed by existing antitrust laws. Recent reviews by Congress have dealt with issues such as: (1) the adequacy and employment of existing federal antitrust statutes to protect farmers against anti-competitive practices; (2) the extent to which mergers influence farm prices and their impact on farmers and consumers, and (3) the appropriate role of the federal government in regulating agroindustry. This report briefly describes the federal statutes and agencies involved in antitrust regulation and reviews proposals offered in the 106th Congress to restrict mergers in agriculture.