Big Ag’s Dependence on Big Finance

Tracking down financial relationships between monopolies and oligopolies in agriculture is key to tackling their power and avoiding systemic crises in food.

Andy Pilny, John Canfield, Mariyam Jamila, Ryan Thomson and I found that the Farm Credit System, a U.S government sponsored enterprise, is the top loan provider (via UCC filings) to the largest pork conglomerates. This includes firms like Smithfield, held by WH Group Ltd., which largely traces back to ownership in China. Outside of the Farm Credit System, the same big banks dominate the network, tying Big Ag into Big Finance.

We identify systemic risk and dependency between the top ten pork powerhouses, making the entire network vulnerable to collapse if any one big player falters. The pork network is highly consolidated already. But these companies are positioned to become even more powerful.  

Graphic by Andy Pilny and Loka Ashwood.

Taking on consolidation to give small farmers and local rural businesses a chance requires coming to terms with our government support systems and banks with unhinged investment power. The public deserves to know who the ultimate beneficiaries of this risky and highly consolidated system that puts eaters, farmers, and rural communities at risk. Read the paper in full here.