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Not Everyone Will Be Onboard If PotashCorp Acquires Agrium

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Not a bumper crop of profits

U.S. farmers, though, are already under pressure from their own low-pricing environment for their crops. Corn today goes for a little more than $3 per bushel, nearly half of what it was getting just a few years ago, while wheat has fallen by a like percentage. They're also being cornered by consolidation underway in the seed and chemicals markets: Syngenta is being acquired by China National Chemical; Dow Chemical and DuPont are looking to merge; and GMO seed giant Monsanto (NYSE: MON) is being pursued by Bayer .

The Justice Department is also trying to thwart John Deere 's(NYSE: DE) plan to acquire Monsanto's precision planting technology business for being anticompetitive, too, so a situation in which there were fewer companies from which to buy fertilizer and crop protection products doubtless wouldn't sit well with them. Canadian farmers probably wouldn't be ecstatic either.

The deal may still get a pass from regulators because there are low-cost international suppliers, but the idea of Canadian and U.S. farmers being forced to shop for those vital supplies in Eastern Europe may not sit well. It could end up being the tractor lobby that causes this merger of equals to fall apart.

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Rich Duprey has no position in any stocks mentioned. The Motley Fool is short John Deere. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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