Bill Overview
Title: Food and Agribusiness Merger Moratorium and Antitrust Review Act of 2022
Description: 22 This bill places a moratorium on certain acquisitions between large agricultural and retail-related businesses and establishes the Food and Agriculture Concentration and Market Power Review Commission. The commission shall report to Congress and the President on (1) the nature and consequences of market concentration in the U.S. food and agricultural economy, and (2) recommended legal and regulatory changes to address such market concentration.
Sponsors: Sen. Booker, Cory A. [D-NJ]
Target Audience
Population: People affected by market concentration in the food and agriculture economy
Estimated Size: 334000000
- The bill targets large agricultural and retail-related businesses, specifically regarding mergers and acquisitions.
- The intent is to halt market concentration, which can impact both producers and consumers in the food and agriculture sectors.
- Market concentration affects competition, prices, and availability of products, thus impacting a wide range of stakeholders from farmers to consumers.
Reasoning
- The policy aims to impact large agribusiness and retail-related entities, which are key drivers of market concentration.
- A moratorium on acquisitions could stabilize competition, potentially affecting a wide range of stakeholders differently.
- Small-scale farmers and independent retailers might see improvements as market power isn't solely in the hands of a few large entities.
- Consumers might benefit from likely stabilized or reduced prices.
- Given the budget and large target population, the policy is intended for broad but varied impact across the agri-food sector, affecting both production and consumption sides.
Simulated Interviews
Corn Farmer (Iowa, USA)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I believe this policy might give us a fairer playing field against corporate giants.
- My main worry has been how these large mergers drive up costs for seeds and fertilizers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 2 |
Grocery Store Owner (California, USA)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Reducing big mergers could help sources from smaller suppliers stay competitive.
- It might lead to more diversity in the products I can offer my customers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 3 |
Farm Equipment Supplier (Kansas, USA)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- I'm worried that a moratorium could reduce demand for new equipment as the bigger players hold back.
- But if it stabilizes the industry, it could be a long-term positive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 8 | 4 |
Food Policy Analyst (New York, USA)
Age: 28 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 1/20
Statement of Opinion:
- I strongly support this policy for its potential to create healthier competition.
- The outcome could be significant for consumer pricing and variety.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 5 |
| Year 10 | 10 | 4 |
| Year 20 | 10 | 3 |
Dairy Farmer (Wisconsin, USA)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I hope this policy can help stabilize milk prices.
- Any effort to level the playing field against major producers is welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 6 | 3 |
| Year 20 | 6 | 3 |
Grocery Store Manager (Ohio, USA)
Age: 27 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- This could help us maintain strong relationships with smaller suppliers.
- I hope it results in more diverse product offerings for consumers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 9 | 3 |
Consumer Advocate (Georgia, USA)
Age: 39 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 2/20
Statement of Opinion:
- Limiting mergers could lead to better pricing for consumers.
- It's vital to keep the food supply diverse and competitive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 4 |
| Year 10 | 9 | 3 |
| Year 20 | 9 | 3 |
Large Scale Crop Farm Owner (Nebraska, USA)
Age: 52 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 3/20
Statement of Opinion:
- This policy could be detrimental if it slows down agribusiness investment.
- I have mixed feelings about how this will play out financially.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 4 |
Retail Chain Executive (Texas, USA)
Age: 47 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 8.0 years
Commonness: 2/20
Statement of Opinion:
- This moratorium could impact our growth strategy.
- We'll need to adjust to focus on internal growth rather than acquisitions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 5 |
Agricultural Policy Maker (Washington, USA)
Age: 55 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 20.0 years
Commonness: 1/20
Statement of Opinion:
- I support any measure that can reduce harmful market concentration.
- This is a crucial step towards fair competition in agriculture.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 7 |
| Year 5 | 10 | 6 |
| Year 10 | 10 | 5 |
| Year 20 | 10 | 4 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $100000000)
Year 2: $45000000 (Low: $25000000, High: $90000000)
Year 3: $40000000 (Low: $20000000, High: $80000000)
Year 5: $30000000 (Low: $15000000, High: $60000000)
Year 10: $10000000 (Low: $5000000, High: $20000000)
Year 100: $10000000 (Low: $5000000, High: $20000000)
Key Considerations
- The moratorium could affect planned mergers, leading to potential legal challenges from companies.
- The effectiveness of the commission's recommendations may vary, depending on political and regulatory action taken.
- The bill could set a precedent that encourages similar initiatives in other sectors facing market concentration issues.