The U.S. Senate Judiciary Committee is investigating how consolidation in the seed and fertilizer industries is driving up input costs for farmers. Lawmakers and witnesses warned that a handful of companies dominate the markets.

Two companies control approximately 73% of the corn seed market and two-thirds of the soybean seed market. Four firms dominate the majority of the nitrogen, phosphate, and potash fertilizer markets.

Experts argued that mergers have stifled innovation and competition, despite promises of efficiency gains. Independent seed producer John Latham testified that farmers are paying record royalties—up to 70% of corn seed costs — for off-patent technologies with no new innovation.

He accused major seed companies of manipulating licensing systems and using coded genetic registrations to block smaller competitors. Restrictive rebate programs also discourage farmers from buying from independents.

Farmers said they are facing both rising costs and tighter corporate control. For instance, digital farming tools charge per-acre fees even where products aren’t used, while fertilizer costs have surged since the Ukraine war.

Industry officials blamed global market pressures and high capital costs. Senators like Dick Durbin countered that consolidation has left farmers with few choices and unsustainable prices.

Read more on the Senate’s investigation into seed and fertilizer prices here.