Tag Archives: monsanto

R.I.P. Monsanto. Our hates will go on.

Welp, this is the end of Monsanto.

Not the end of the seed company, mind you, but the end of its name. The scientists, marketers, and lawyers who work there will keep doing their jobs, they’ll just be employed by Bayer, the big German chemical and pharmaceuticals company that’s slowly swallowing Monsanto.

But we’re losing so much more than just a name. Without Monsanto, who will we blame for the death of bees, the unprofitability of small farms, and the insidious spread of mystery diseases which you probably don’t even realize you have? The natural answer is, of course, Bayer, but outrage is rarely transferable– it sticks to the brand.

Case in point: What’s the military contractor Blackwater called today? How about the tobacco corporation formerly known as Phillip Morris? What became of IG Farben, the company that produced Zyklon-B for use in concentration camps? (Answers at bottom.)*

The name Monsanto itself was a valuable tool for activists who could wield it as a boogeyman to rally people without much knowledge of an issue. Groups like the March Against Monsanto depend on the brand. “Will they still march if there’s no Monsanto?” asked Dan Charles, the guy who wrote the book on the company. March Against Bayer just doesn’t have the same ring to it.

Bayer made the deal to buy Monsanto back in 2016, and it’s been jumping through various regulatory hoops since. The deal was among a series of mergers in agribusiness brought on by low food prices and declining profits.

Monsanto was the leader in commercializing genetically modified crops, and today the name is synonymous with GMOs engineered for large-scale agriculture. Before it sold off the chemical business to be a fulltime gene-jockey, the company also created glyphosate, the controversial and most widely used herbicide in the world, though many companies started manufacturing it after the patent expired. Monsanto has done some bad things through its history, developing some nasty chemicals and recently releasing a soybean that encouraged farmers to screw over their neighbors. But it’s also routinely blamed for problems it has nothing to do with.

Monsanto has been the whipping boy for a strange coalition that runs the left-right gamut from anti-corporate greens to fans of the conspiracy theorist Alex Jones. It was the go-to if you had a problem and needed someone or something to blame it, a point the writer Cirocco Dunlap captured in a satire of new-agey faddism when asking why more people weren’t curing sick children with coconut oil: “It was so nice and so easy; I’m confused why people don’t do this more often. Probably because of Monsanto.”

It’s probably a good thing we won’t have Monsanto to kick around anymore. Much of the animus against Monsanto stems from a sense that corporations are changing food and farming in ways that we don’t understand. The thing is, those corporations have taken the lead in innovation because our government hasn’t been all that interested in funding public-sector research in agriculture. Funding research on destructo swarmbots to slaughter our enemies? That’s a no-brainer. Funding to feed people and keep them from becoming our enemies in the first place? Well, that’s where we tend to tighten the belt.

Perhaps now, instead of searching for an easy villain, we might consider searching for the root causes of our problems and fixing them.

*Philip Morris is now Altria. Blackwater became Xe. IG Farben was broken up after World War II into other companies which have since become parts of five others: Agfa, BASF, Celanese, Sanofi, and … Bayer.

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R.I.P. Monsanto. Our hates will go on.

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It’s more dangerous to cross a street if you’re black. Here’s why.

When Monsanto introduced a new kind of seed that wouldn’t die when exposed to the herbicide dicamba, it triggered a crisis in the southeastern United States. Farmers planted the seed and started spraying dicamba, and it worked great! Except that it drifted onto other farmers’ fields and killed their crops.

And the dramatic plot twists keep coming. One farmer gunned down another in a confrontation over his withered crops. Then, states began to restrict the use of dicamba, with Arkansas completely banning it last summer.

Monsanto wasn’t happy about that. In the latest development, the agribusiness company sued the Arkansas State Plant Board, which regulates pesticides. It also sued each of the individual board members — who, for the record, are just local, agriculture-minded folks who volunteer their time.

One board member, Terry Fuller, told NPR’s Dan Charles: “I didn’t feel like I was leading the charge. I felt like I was just trying to do my duty.”

But farmers on the other side of the debate, who think the ban is way too strict, are demanding at least limited access to dicamba. What a mess.

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It’s more dangerous to cross a street if you’re black. Here’s why.

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Ditch the deodorant, save the planet?

When Monsanto introduced a new kind of seed that wouldn’t die when exposed to the herbicide dicamba, it triggered a crisis in the southeastern United States. Farmers planted the seed and started spraying dicamba, and it worked great! Except that it drifted onto other farmers’ fields and killed their crops.

And the dramatic plot twists keep coming. One farmer gunned down another in a confrontation over his withered crops. Then, states began to restrict the use of dicamba, with Arkansas completely banning it last summer.

Monsanto wasn’t happy about that. In the latest development, the agribusiness company sued the Arkansas State Plant Board, which regulates pesticides. It also sued each of the individual board members — who, for the record, are just local, agriculture-minded folks who volunteer their time.

One board member, Terry Fuller, told NPR’s Dan Charles: “I didn’t feel like I was leading the charge. I felt like I was just trying to do my duty.”

But farmers on the other side of the debate, who think the ban is way too strict, are demanding at least limited access to dicamba. What a mess.

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Ditch the deodorant, save the planet?

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Trump Is Ready to Bless Monsanto and Bayer’s Massive Merger

Mother Jones

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Not even sworn in yet, President-elect Donald Trump is already negotiating the terms for green-lighting what Bloomberg News calls the globe’s “biggest-ever” merger of agribusiness companies—a move antitrust experts say is highly irregular.

US seed and pesticide giant Monsanto and its former German rival Bayer are in the midst of a $66 billion combination, one that immediately raised antitrust hackles because the resulting company would own around 29 percent of the global seed market, and 25 percent of the global pesticide market. Here in the United States, a combined Bayer-Monsanto would have nearly 60 percent of the US cottonseed market.

As I recently explained, such market power wielded by a single agribusiness company threatens to harm farmers and ultimately, consumers. The executive branch is required to vet massive combinations based on such concerns under the Sherman Act. But Trump’s talks with the CEOs of Monsanto and Bayer apparently had nothing to do with the deal’s impact on competition. On Tuesday, Fox Business News recently delivered Trump’s version of how the negotiation proceeded, quoting incoming White House Press Secretary Sean Spicer from a press conference call:

After Trump’s meeting with Bayer and Monsanto CEOs, Bayer has committed to $8 billion in new U.S. research and development. Bayer will also keep 100% of Monsanto’s 9,000 plus U.S. workforce, and add 3,000 new U.S. high-tech jobs.

Bayer and Monsanto, for their part, on issued a joint statement describing their CEOs’ “very productive meeting last week with President-Elect Trump and his team.” They made no specific pledges on jobs, but did note that the “combined company expects to spend approximately $16 billion for R&D in agriculture over the next six years with at least half of this investment made in the United States,” an investment that “will create several thousand new high-tech, well-paying jobs after integration is complete.”

If Trump really does bless the merger based on a jobs pledge, dismissing antitrust concerns, it would “signal a fundamental disregard for the law and for due process,” Diana Moss, president of the American Antitrust Institute, told me. “Antitrust enforcers play the important role of referee in protecting competition and our market system,” she added. “If Trump lets this deal through without any review, it would be unusual and would raise significant concerns.”

According to Barry Lynn, director of the Open Markets at the New America and author of Cornered: The New Monopoly Capitalism and the Economics of Destruction, a combined Bayer-Monsanto would likely “pay for those jobs by ripping off American farmers, hence American eaters,” by leveraging their market power to raise prices. If the jobs deal pans out, he added, “Trump’s team is selling out the long term interests of the United States.”

And then there’s the whole question of what exactly Monsanto and Bayer are promising to deliver. As CNBC’s Meg Tirrell notes, the companies had already announced plans, way back when they agreed to merge in September, to keep the combined company’s Seeds & Traits division, as well as its main North American headquarters, in Monsanto’s hometown, St. Louis.

In that same September announcement, the two companies noted that the combined entity would maintain an annual R&D budget of 2.5 billion Euros, equal to about $2.66 billion. That amounts to about $16 billion over six years—exactly what Monsanto and Bayer said to expect in its recent joint statement.

Then there’s those jobs. Recall that Trump spokesman Spicer said on the press call to that the combined company had committed to “keep 100% of Monsanto’s 9,000 plus U.S. workforce, and add 3,000 new U.S. high-tech jobs.” But the joint statement from Monsanto and Bayer promised no such thing, only offering a vague reference to “several thousand new high-tech, well-paying jobs after integration is complete.”

It also bears noting that in the joint statement following the merger plan in September, Bayer and Monsanto promised their shareholders “total synergies of approximately USD 1.5 billion after year three, plus additional synergies from integrated solutions in future years.” In corporate-merger speak, “synergy” means cost savings from from combining operations and eliminating overlapping jobs: one of the major motivations for merging in the first place.

I asked a Monsanto spokeswoman whether the Trump team’s depiction of Bayer-Monsanto’s jobs commitment was accurate. She pointed me back to the joint Monsanto-Bayer statement, and declined to comment further.

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Trump Is Ready to Bless Monsanto and Bayer’s Massive Merger

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Trump Eyes Ex-Agrichemical Exec to Fill His Final Cabinet Post

Mother Jones

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When Indiana’s then-governor Mike Pence needed to appoint a new director of his state’s agriculture department back in 2013, he dipped right into the corner offices of the global agrichemical industry. His pick, Ted McKinney, then the director of global corporate affairs for Elanco Animal Health, a division of pharma giant Eli Lilly, had previously been an executive on the government-affairs team for seed/pesticide giant Dow AgroSciences.

Now Pence is the vice president-elect for the incoming Trump administration, which sorely needs to appoint a secretary of the US Department of Agriculture, the only open cabinet slot. And McKinney, recently re-appointed as director of Indiana’s agriculture department, has emerged as the latest in a long line of contenders du jour for the job, Politico reports.

And now the USDA post is really open: Tom Vilsack, the outgoing USDA chief, abruptly quit Friday, informing employees in an email he had served his final day, ABC News reports. Vilsack added some damning commentary on Trump’s delay in choosing his successor: “When that individual is named, he or she will be at a tremendous disadvantage, in terms of getting up to speed on all this department does,” Vilsack said in a statement, according to ABC.

Will McKinney be the one Trump chooses for the burden? In his capacity as an Indiana government official, McKinney—who also serves as director of agribusiness development at the Indiana Economic Development Corporation—is perhaps best known for helping lead an ultimately unsuccessful but “very aggressive” effort to entice DowDuPont to choose Indianapolis as the corporate HQ of its agrichemical arm. McKinney has a well-earned perspective on the advantages of doing agribusiness in Indiana, which sits in the heart of the US corn belt. His most recent private-sector employer, Elanco, is headquartered in the state, as was Dow AgroSciences, until its parent company merged with DuPont last year.

The seed and pesticide industries would certainly have a major ally at the helm of the USDA if McKinney gets the nod. In addition to having worked for Dow for nearly two decades, Mckinney was a co-founder and served as interim executive director for the Council for Biotechnology Information, a group funded by BASF, Bayer, Dow AgroSciences, DuPont, Monsanto, and Syngenta, to promote agriculture biotech. These companies need USDA approval to move novel genetically modified seeds from lab to market. And apparently they have Trump’s ear—on Wednesday, Bayer CEO Werner Baumann and his Monsanto counterpart Hugh Grant scored an audience with the incoming president to promote the pending merger, which will need to pass antitrust vetting from Trump’s justice department.

But McKinney isn’t purely an agri-tech nerd. In an address before an annual meeting of an Indiana pork industry group soon after taking the Indiana department of agriculture job, McKinney cited “divine intervention” as one of the main reasons for his move from the corner office to the state bureaucracy. After getting the call from Pence, he explained, “my wife and I prayed about it, it just seemed right. I took the plunge, and here we are…and I’m having a ball!”

Like former Georgia Governor Sonny Perdue, McKinney appeared on early versions of Trump’s USDA short list, disappeared from discussion for weeks, only to re-emerge with a headline-grabbing visit to Trump Tower, Politico reports.

Fun fact: McKinney’s son, Brad McKinney, works for Mike Torrey, the DC Big Food lobbyist who for a couple of weeks in November led Trump’s USDA transition. Torrey abruptly quit after Trump announced a ban on lobbyists serving in the transition.

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Trump Eyes Ex-Agrichemical Exec to Fill His Final Cabinet Post

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Trump Somehow Found Time Today to Meet With Monsanto Execs

Mother Jones

Amid the furor surrounding allegations of covert ties with Russian intelligence figures as well as his first press conference since winning the election, President-elect Donald Trump found time in his hectic Wednesday schedule to meet with two towering figures in the agriculture world, reports Fox Business Daily. But the main conversation topic wasn’t the job opening atop the US Department of Agriculture, the sole cabinet spot awaiting an appointment from Trump.

Rather, the meeting involved German chemical giant Bayer’s $66 billion buyout of US seed/agrichemical giant Monsanto—a deal that will have to pass antitrust muster with Trump’s Department of Justice (more on that here). Fox reports that Bayer CEO Werner Baumann and his Monsanto counterpart Hugh Grant met with the incoming president at Trump Tower in midtown Manhattan to promote the merger. In an email to the news organization, a Monsanto spokesperson confirmed that the two execs “had a productive meeting with President-Elect Trump and his team to share their views on the future of the agriculture industry and its need for innovation.”

Baumann and Grant have plenty to be concerned about regarding possible antitrust obstacles to their mega-deal. As I’ve reported before, a combined Bayer-Monsanto would own 29 percent of the global seed market, and 25 percent of the global pesticide market. And if the pending merger between agribiz goliaths Dow and DuPont also wins approval, three enormous companies—the above two combined firms, plus Syngenta (itself recently taken over by a Chinese chemical conglomerate)—would sell about 59 percent of the globe’s seeds and 64 percent of its pesticides. In this post, I tease out how such concentrated power can harm farmers and consumers alike.

And as The Wall Street Journal reports, opposition to these mergers has arisen even in rival agribusiness circles, including among the motley crew of execs and aligned GOP farm-state pols who served on Trump’s rural advisory committee during the campaign. Iowa corn, pork, and ethanol magnate Bruce Rastetter, a member of that committee and a leading candidate for the USDA post, told The Journal he “plans to raise his concerns about the mergers directly with Mr. Trump in the near future.” Rastetter is tightly aligned with Iowa Gov. Terry Branstad, whom Trump has picked to serve as ambassador to China.

As with everything else he does, Trump seems intent on plunging these momentous decisions—on both the future of the seed market and the leadership of the USDA—into a swirling sea of chaos and drama.

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Trump Somehow Found Time Today to Meet With Monsanto Execs

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One farmer gunned down another, apparently after a confrontation over an herbicide.

Non-white or non-male riders, however, may have a harder time. That’s the conclusion of a new study in which researchers had students in Seattle and Boston request rides on specific routes from Uber, Lyft, and taxi-hailing app Flywheel.

Here’s how it works: When you request an Uber, the driver can only see your location and star rating. After that driver accepts, they get your name and picture, too — and may cancel if they don’t like what they see. Researchers zeroed in on cancellations to measure discrimination, says Don MacKenzie, one of the study’s coauthors.

For the Boston study, riders used preset identities with names like Keisha, Rasheed, Allison, and Todd. The male riders who used stereotypically black names saw a cancellation rate of 11.2 percent, compared to the 4.5 percent cancellation rate of those using white names. Female riders using white names had a cancellation rate of 5.4 percent, while female riders with black names experienced a cancellation rate of 8.4 percent, nearly double the cancellation rate for white male riders (MacKenzie points out that difference is not statistically significant).

Finally, women were sometimes subjected to unnecessarily long rides from talkative drivers — resulting in lost time and money for those riders.

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One farmer gunned down another, apparently after a confrontation over an herbicide.

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Monsanto Just Made a Massive Mistake

Mother Jones

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A couple of weeks ago, the Environmental Protection Agency announced it had gotten an “unusually high number of reports of crop damage that appear related to misuse of herbicides containing the active ingredient dicamba.” Complaints of drooping and often dead crops appeared in no fewer than 10 states, the EPA reports. In Missouri alone, the agency says it has gotten 117 complaints “alleging misuse of pesticide products containing dicamba,” affecting more than 42,000 acres of crops, including peaches, tomatoes, cantaloupes, watermelons, rice, peas, peanuts, alfalfa, cotton, and soybeans.

The state’s largest peach farm, which lies near soybean-and-cotton country, has suffered massive and potentially permanent damage this year—and suspects dicamba drift as the culprit, reports the St. Louis Post-Dispatch.

What gives?

The trouble appears to stem from decisions made by the Missouri-based seed and pesticide giant Monsanto. Back in April, the company bet big on dicamba, announcing a $975 million expansion of its production facility in Luling, Louisiana. The chemical is the reason the company launched its new Roundup Ready Xtend soybean and cotton seeds, genetically engineered to withstand both dicamba and Monsanto’s old flagship herbicide, glyphosate (brand name: Roundup). Within a decade, the company wrote, the new GM crops will proliferate from the US Midwest all the way to Brazil and points south, covering as much as 250 million acres of farmland (a combined land mass equal to about two and a half times the acreage of California)—and moving lots of dicamba.

The plan is off to a rough start—which brings us back to those drooping crops in soybean and cotton country. The company elected to release Roundup Ready Xtend soybean and cotton seeds this spring, even though the EPA has not yet signed off on a new herbicide product that combines glyphosate and a new dicamba formulation. That was a momentous decision, because the dicamba products currently on the market are highly volatile—that is, they have a well-documented tendency to vaporize in the air and drift far away from the land they’re applied on, killing other crops. Monsanto’s new dicamba, tweaked with what the company calls “VaporGrip” technology, is supposedly much less volatile.

The trouble is that farmers have been planting glyphosate-tolerant cotton and soybeans for years, and as a result, are dealing with a mounting tide of weeds that have evolved to resist that ubiquitous weed killer. So they jumped at the new seeds, and evidently began dousing crops with old dicamba formulations as a way to knock out those glyphosate-tolerant weeds. Oops.

For its part, Monsanto says it expects the EPA to approve the new, improved dicamba formulation in time for the 2017 growing season, and that it never expected farmers to use old dicamba formulations on the dicamba-tolerant crops it released this year. If the VaporGrip formulation does indeed control volatization as promised, the drift incidents of 2016 will likely soon just be a painful memory for affected farmers. If not, they portend yet more trouble ahead for the PR-challenged ag giant.

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Monsanto Just Made a Massive Mistake

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Organic industry sales put Monsanto’s to shame

Organic industry sales put Monsanto’s to shame

By on May 19, 2016Share

If there was some stock index fund that covered organic food businesses, I’d want to invest my savings in it. In the United States organic food sales have grown steadily at around 10 percent a year since the Great Recession (and at higher rates before that), which puts the stock market to shame.

In 2015 organic product sales revenue grew 11 percent, while the rest of the food market grew at a rate of 3 percent, according to the Organic Trade Association’s annual survey of the industry. Total sales reached $43.3 billion, which makes the organic industry a force to be reckoned with. For comparison, Monsanto brought in just under $15 billion in revenue last year, and Whole Foods brought a little over $15 billion.

When people have the disposable income they’re pretty quick to take a step up the price ladder from commodity food. Organic food still only amounts to five percent of the U.S. market, which suggests that there’s room for more growth.

The term organic doesn’t automatically mean the food is produced with the best environmental practices, or that it’s healthier and tastier, but it often is: The higher prices provide farmers with bigger margins, and that gives them a greater ability to attend to quality and stewardship.

Here’s our explainer on what organic signifies.

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Organic industry sales put Monsanto’s to shame

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Monsanto Halts Its Bid to Buy Rival Syngenta—For Now

Mother Jones

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After four months of hot pursuit, genetically modified seed/pesticide giant Monsanto formally ended its bid to buy rival Syngenta Wednesday—at least for now. Earlier in the week, Monsanto had sweetened its offer for the Swiss agrochemical behemoth—most famous for its controversial atrazine herbicide and neonicotinoid pesticides—to $47 billion, in an effort to convince Syngenta’s management and shareholders to accept the merger. They balked, and Monsanto management opted to halt the effort, declaring in a press release that it would instead “focus on its growth opportunities built on its existing core business to deliver the next wave of transformational solutions for agriculture.”

However, Monsanto may just be pausing, not fully halting, its buyout push. The company’s press release states that it’s “no longer pursuing the current proposal” (emphasis added) to buy its rival, and quickly added that the combination “would have created tremendous value for shareowners of both companies and farmers.” And as Dow Jones’ Jacob Bunge notes, Monsanto CEO Hugh Grant “has coveted Syngenta since at least 2011, and said in a June interview that he viewed the effort as ‘a long game.'”

The logic that has driven Monsanto’s zeal for a deal remains in place: It wants to diversify away from its reliance on seeds by buying Syngenta, the world’s biggest purveyor of pesticides (more on that here).

Meanwhile, Monsanto has been actively hyping up a new generation of pesticides, still in the development stage, which work by killing crop-chomping pests by silencing certain genes. But the company doesn’t expect the novel sprays to hit the market until 2020—a timeline that may be overly optimistic, as I show here.

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Monsanto Halts Its Bid to Buy Rival Syngenta—For Now

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