Sean Dengler.

It is pure poppycock when people ascribe that the way things are is the way things must be and will always be. There was a time in the mid-20th century when society did not let few companies gain too much control at the expense of others. Unfortunately, public schools are hollowing out, food and health care deserts are becoming more prevalent. These terms were not used until our public policy allowed the guardrails to weaken. At this moment in time, we are facing the consequences of the abuse of patents and unfair competition.

This is where agriculture comes in and the effect of abuse of patents and competition on farmers and rural Iowa. According to Farm Action, “After the Supreme Court ruled that genetically modified seeds could receive patent protection in 1980, however, that began to change. Major biotech companies developed strong incentives both to enter the seed market — where they could develop and license new patented genetically-modified seeds — and to ‘consolidate patent portfolios’ and thereby avoid patent infringement litigation. Aided by the loosening of merger enforcement under the Reagan and Clinton administrations, they pursued these incentives through aggressive merger and acquisition strategies. The result was an explosion of biotechnology acquisitions in the seed market that transformed the seed and pesticide industries.”

While some people might believe the free market was at work, it was the cornering of the patent market and reducing competition which has led to these disastrous effects for farmers and hollowing out of rural Iowa.

“According to the USDA’s 2023 Concentration and Competition in U.S. Agribusiness report, 58% of all Plant Variety Protection Certificates (PVPCs) issued by the USDA and all patents for new crop varieties and closely 47 related innovations issued by the USPTO between 1976 and 2021 are now controlled by the three largest seed companies — Bayer, Corteva, and ChemChina-Syngenta,” per Farm Action.

These three large seed companies hold the secrets to seeds and tie their chemicals with the seeds. It is a genius business plan, but one which creates an oligopoly where these companies can continue to raise prices and push out smaller farmers.

“By 2002, 95% of patents originally held by seed or small ag-biotech firms had been acquired by large chemical or multinational corporations. By the end of the 2010s, globally, Corteva, Bayer, and ChemChina gained control over an estimated 50-60% of seed and agrochemicals sales when they consolidated.”

This consolidation in the seed and chemical industry was not achieved because they are superior companies. It was taken by brute, unfair force. According to Investigate Midwest, these biotech companies allegedly abused their power. “In 2022, the Federal Trade Commission sued Syngenta and its industry peer, Corteva Agriscience, which also produces pesticides and seeds, for anticompetitive business practices. The lawsuit is ongoing.”

For the non-farmers and maybe some farmers, these companies have a specific way they keep business coming their way and not to the cheaper, generic alternatives.

“The cases’ central tenet is that the companies’ use of loyalty programs prevents legitimate generic competition. Under these programs, companies pay retailers an incentive to stock their products, resulting in fewer generic options for farmers. Retailers often rely on the incentive, which the FTC said can be substantial.

Internally, company staff have recognized the programs’ effectiveness, according to documents obtained by the FTC. A Corteva manager said, “Our team truly has done an A+ job blocking generics.” Another said farmers wanted cheaper options but purchased branded products because “nobody sells generics.”

The loyalty programs helped preserve the monopoly protections that patents provided, said Rick Pinto, an attorney in the class-action lawsuit. “That has resulted in huge profits and higher prices for farmers,” he said. “It’s hurting the farmers, and it’s putting inappropriate profits into the pockets of these manufacturers.”

None of this is aimed at the specific seed and/or chemical dealer. It is aimed at these large companies using their monopoly power to make markets less competitive by abusing their patent protections. This creates high costs for farmers, which consolidates farms, hollows out public schools, and creates food deserts and health care deserts.

This is not a new problem. The United States has dealt with monopoly power before, and it is time to reinvigorate antitrust laws and antimonopoly policies. Wealth should be spread across the land and not in fewer and fewer hands. It is time for economic liberty from these large corporations. By breaking them up or enforcing these laws and policies to ensure fair competition, small farmers and rural Iowans will not be at their powerful whims. Saying “this is the way it has always been” is not helpful, nor true. Prosperity comes for people when we ensure markets are competitive. We did it in the mid-20th century, and we can do it again.

Sean Dengler is a writer, comedian, farmer, and host of the Pandaring Talk podcast who grew up on a farm between Traer and Dysart. You can reach him at sean.h.dengler@gmail.com.