Corn and soybeans are two of America’s most lucrative cash crops. Corn is used in soft drinks and processed snacks, but most corn is used to produce ethanol, a heavily subsidized industry. Soybeans turn into cooking oil and biofuel.
Given their value and centrality to the U.S. food system, the agriculture industry invests millions of dollars and years into crafting genetically modified seeds — seeds that produce higher yields. To protect their investments, the industry has patented their inventions.
Just two companies — Bayer, the German conglomerate, and Corteva Agrisciences, which spun off from DowDuPont in 2018 — control the vast majority of patents related to genetically engineered crops. They own just under 80% of these patents, according to U.S. Department of Agriculture research.
Bayer and Corteva both own thousands of patents related to seed.
With their grip on the industry’s intellectual property, Bayer and Corteva also control the majority of the market for corn and soybeans, according to USDA research using proprietary data.
The two companies also control large swaths of pesticide markets. A third chemical company, Syngenta, also owns many corn and soybean patents.
The USDA has said the concentration in intellectual property has led to fewer choices for farmers. It has also led to less innovation in the industry and higher seed costs for farmers, the USDA has said.
Under President Joe Biden, the USDA began studying concentration in the seed industry a couple years ago. It recently announced a new framework to address the concentration. One aspect of the USDA’s new approach is helping small industry players navigate the patent system so they can better understand what is legally protected.
It’s unclear how the new Donald Trump administration will handle the USDA’s new framework. During his first term, there were three mergers in the seed industry.
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