The U.S. Department of Agriculture and the Department of Justice have announced a new partnership aimed at investigating what’s behind the sky-high input costs that are squeezing American farmers.
“Farmers have enough challenges to deal with. Sky high input prices should not be one of them.” According to U.S. Secretary of Agriculture Brooke Rollins, “Seed costs are up 18% fuel and oil up 32%, electricity costs up 36%, labor costs up 47%. The cost of vehicles and machineries up 45% interest expenses up by 73% and fertilizer costs increased 37%.”
But some in the agriculture industry say it’s more than just inflation. Concerns about corporate consolidation and possible price manipulation have been growing louder.
The USDA and DOJ say they’re pooling resources and data to determine whether anti-competitive practices are driving up costs, and if any companies are violating antitrust laws.
Rollins continues, “The antitrust division of DOJ will work hand in hand with USDA effective immediately to take a hard look and scrutinize competitive conditions in the agricultural marketplace, including antitrust enforcement that promotes free market competition.”
This move follows months of pressure from farm groups and rural lawmakers who argue the current system favors large agribusinesses at the expense of small and mid-sized farms. The joint effort could lead to formal investigations,and even legal action, if wrongdoing is found.
For now, farmers across the country are watching closely, hoping this marks a turning point toward a more level playing field.
