Concentration in America’s agriculture system is at an all-time high. Waves of mergers and acquisitions across food and agriculture sectors have concentrated power into the hands of just a few dominant corporations. Unbridled integration by these corporations has led to a stark decrease in market competition, allowing them to amass unprecedented power and control over the way Americans farm, work, and eat.
This unprecedented concentration in agriculture means these corporations now control every link in the food supply chain, from agricultural inputs and equipment, to processing and marketing, to financing and insurance. When one link in these massive, integrated chains breaks, the effects are felt by many, putting our food security and national security at risk. The past few decades have been riddled with price fixing and collusion by these corporate giants, leaving farmers with less and less compensation for their goods and consumers with sticky, ever-increasing prices that are quick to go up but slow to drop back down.
A simple measure of market concentration is a ratio, typically the combined share of the top four firms, or concentration ratio four (CR4). Economists find that market abuses are likely to occur when the concentration ratio of the top four firms exceeds 40%. Below we present concentration ratios, dominant firms, and their market shares, demonstrating the widespread market concentration in nearly every agriculture sector in the U.S. Our agriculture concentration data were collected in July 2024 and represent U.S. market shares unless otherwise noted.
Global Seed CR4: 51%
Global Agrichemical CR4: 62%
U.S. Soybean Seed CR4: 70%
U.S. Corn Seed CR4: 80%
U.S. Cotton Seed CR4: 90%
U.S. Agrichemical CR10: 85-90%
U.S. Seed Genetics for Corn, Soybeans, and Cotton CR2: 90%
Nitrogen Dominant Firms: CF Industries, Nutrien, Koch Industries, and Yara
Nitrogen Fertilizer CR4 (North America): 77%
Phosphate Dominant Firms: Mosaic and Nutrien
Phosphate Fertilizer CR2 (North America): 90%
Potash Dominant Firms: Nutrien and Mosaic
Fertilizer Distribution and Retail CR7: 70%
Deere & Co. is the most dominant agricultural equipment firm in the U.S.
All Agricultural Machinery in U.S. CR4: 60.8%
Large Tractors in U.S. CR3: 95%
Combines in U.S. CR3: 97%
The Herfindahl-Hirschman Index (HHI) is another measure of concentration. It is calculated by squaring the market share of each firm competing in a market and then summing the resulting numbers. It can range from 0-10,000, with lower values indicating more competitive markets. A market with an HHI of 2,500 or greater is considered highly concentrated.
Four entrenched dominants of global trade in agricultural commodities are known as the “ABCDs”: Archer Daniels Midland (ADM), Bunge, Cargill, and Louis Dreyfus.
U.S. Port Elevators CR4: 60%
Domestic Grain Storage Capacity CR7: 41%
U.S. River Elevators CR4: 45%+*
Subterminal Rail Elevators U.S. CR4: 22%+
U.S. Export Trade
End-user Industries:
Beef CR4: 80-85%
Pork CR4: 70%
Dairy
Poultry CR4: 60%
Egg CR5: 36-40%
Processed Food and Drinks CR4s:
Driscoll’s is dominant in berries.
Fresh-Cut Salad CR4: 54%
Carrots CR2: 60%
Retail Grocery CR4: 69%
Broadline Distribution CR10: 60-70%
Farm Credit System
Commercial Banking CR4: 41%
The above data are derived from a Farm Action report set to be released in September 2024. Below is a suggested citation for this webpage:
Farm Action. (2024, July). Agriculture Concentration Data. https://farmaction.us/concentrationdata/
This report is a tool to educate policymakers, advocates, and the public about the impact industrial agriculture corporations have on the U.S. food and agriculture system.
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