Powerfarm.com News / 11/8/99
Nine groups representing an array of food processors are urging Washington lawmakers to oppose a measure that would temporarily ban large-scale agribusiness mergers, claiming a moratorium will only hurt farmers and business owners. "Under the proposed merger moratorium bill, a faltering agribusiness would simply close its doors, leaving employees, farmers and communities to look for other sources of income," the groups wrote to senators last week. "Like farmers who seek to sell their land when they retire, mergers and acquisitions often serve as the retirement plan for small business owners," they wrote. A bill to suspend mergers for 18 months, introduced by Sen. Paul Wellstone, (D-MN) should come up for debate early this week. The measure would prohibit an agribusiness merger or acquisition if one partner has assets or revenue exceeding $100 million and the other has assets or revenue of $10 million. The moratorium would last for 18 months or until congress passes new legislation on agribusiness concentration. Sparks Companies told clients this morning that a vote on the measure could come Tuesday. Sparks said the measure is not expected to pass, but the vote is likely to be closer than first expected.:
