Will ag banks prosper in age of vertical integration?
by Steve Cocheo Concentration in agribusiness and possible ripple effects have some ag bankers concerned about their long-term future Bigness” has been a nasty and worrisome word in American agriculture since about as long ago as when the first steel-bladed plow began furrowing the prairies of the Midwest. There has always been some “big” party or group that the little guys have fretted over, fought, or hated. Likewise there has long been concern about concentration of power in the ag business. The testimony, accusations, and objections that came out earlier this year when Cargill, Inc., proposed taking over Continental Grain (completed in July, after divestitures were made) and later when the pork industry’s Smithfield made moves to acquire rival Murphy Family Farms were only the latest acts in a long-running play. There are also mergers that have taken place in support businesses–such as between Case and New Holland in farm equipment, and others in the inputs area, such as mergers o
