"With declining grain prices many farmers fear that further concentration in agri-business will significantly diminish competition from companies that buy, store and trade their commodities. Fewer markets for producers in rural areas can aggravate an already serious agriculture situation. And ultimately, consumers of grain products also could be adversely impacted by fewer choices and higher prices," Grassley said.
During the last year, Grassley has expressed concern to the Justice Department about the trend of mega-mergers in a number of industries and the potential negative impact such consolidations might have on rural America. In August, department officials told Grassley they would continue to pay special attention to the impact of mega-mergers on rural states like Iowa.
This week, Grassley said the announcement by Cargill raises antitrust questions because of the resulting further diminished competition in the grain-handling industry. Already, agri-business is experiencing an overall consolidation in the industry, from processing, merchandising and trading, to grain storage and seed supply.
"Cargill and Continental Grain are two of the largest grain companies in the country and together purchase up to 15 percent of all grain produced. Moreover, the merger will result in the company's control of possibly one-third of all U.S. grain exports," Grassley wrote in a letter to the U.S. Assistant Attorney General and the Chairman of the Federal Trade Commission.
In the Senate, Grassley is a member of the Judiciary Committee, with jurisdiction over competition and antitrust policy. He is also chairman of the International Trade Subcommittee.