Profit Actually

Monsanto execs make millions off farmers' backs

Posted by Matthew Dillon (Guest Contributor) at 1:47 PM on 22 May 2008

Read more about: agriculture | Big Ag | business

Hugh Grant -- Monsanto chair, CEO, and president -- probably won't notice the increased price of a loaf of bread. And if he does, it will be with a smile. Grant is $13-million-and-change wealthier today than he was on Monday, as he choose to exercise stock options -- 116,000 shares worth -- that netted him a profit of over $114 per share.

Like many of us, I wouldn't mind paying the extra dollar per loaf of bread if I knew the majority of that dollar was going back into the hands of farmers. Instead, the higher prices at the checkout line are funneled to the agri-giants like Monsanto and Cargill, companies making record profits. Remind you of gas prices and oil companies? Reminds me that these agri-giants spent $100 million on getting their way in the Farm Bill, an investment with huge dividends -- for Monsanto's Hugh Grant, anyway.

Cross-posted at OCM.

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5 Comments | Post a Comment

Capitalism

Isn't the basis of capitalism that you shouldn't care about who gets the money, as long as your loaf of bread gets less pricey for you? You are the consumer. Why be angry at the wealthy CEO when he makes sure your bread is cheaper?

In capitalism it is the consumer who can decide no longer to by cheap Monsanto bread and instead to spend more on bread made by local farmers who use their own seeds.

But apparently there's no market for this type of bread. Because apparently, most consumers are not very consequential in their behavior. At the one hand they are angry about social injustice, but when you urge them to use their power as consumers to to change things, they don't.

It's best to just skip these steps and arguments, quit negotiating with capitalists, and just admit that only marxism offers a humane alternative.

by Jonas at 2:08 PM on 22 May 2008

Just Capitalism?

If it were just about capitalism, then the power of voting with dollars might work.

Unfortunately, disproportionate access to our government (and which citizens count more than others in our representative government) compromises our power in the "free" market. If Monsanto, Cargill, and ADM can spend a billion dollars and influence the supply-demand balance, etc. then they can make the market, and our choices for where to cast our vote as consumers is artificially narrowed.

Sure, to a certain extent we should be mindful of how our dollar is spent, and what it reinforces in the market. But if all candidates on the ticket listen to these giant corporations while I'm busy earning the dollars with which to "vote", how much is my political vote worth? That vote controls - in a small way - which team the tax base cheers for...but if none of my choices makes a meaningful difference to steer government support away from industrialized agriculture, CAFOs and the rest, what's the point?

Too many people think that if we could just act as more responsible consumers, everything will be okay. Maybe, but we're fighting a pretty difficult battle when you consider that the realm of what's possible to consume is largely determined by three companies, in this case.

by jdcasey at 5:48 PM on 22 May 2008

Evil Monsanto's

Hah ha . That guy' laughing all the way to the bank !!!
Read Vanity Fairs green issue to see where Monsanto's comes from. They have REAL skeletons in their collective closets and their own Gestapo. When they control the price of food thru GMO seeds etc etc. We are sheeple who reward criminals like Monsanto's.
Who can equate the social , environmental , let alone the CO2 footprint of this GIANT BAD SEED !!!
And can you point out the bread made with their products???

by maverick at 7:44 PM on 22 May 2008

"Bread" was a metaphor

Thanks for the comments one and all. Monsanto doesn't produce bread - they produce trangenic traits, seed, and agricultural chemicals that work with their seed. I was using "bread" in a metaphorical sense to cover the wide array of food products that we are paying more for while the lion's share of profits go to large agribusiness firms (Cargill, Monsanto, ADM, ConAgra)and their execs.

In the case of Monsanto, a better item than bread would have been "breakfast cereal" as Monsanto corn varieties go into cereals and other processed foods.

Monsanto doesn't have retail brands, they supply inputs - and are making a pretty penny doing so in part due to their having unfair competitive practices (market concentration/monopoly) on seeds.

Sorry that was confusing.

by Matthew Dillon at 12:42 PM on 23 May 2008

capitalism

I am not saying the CEO of Monsanto should make 13 million dollars, or anyone for that matter, but that is pretty much how the world works. The reality of the situation is a tad bit more complicated than people would like to believe. Monsantos profits have very little effect on world food price. There are a lot of reasons why food prices are increasing and most of it has to do with oil prices, drought caused by global warming and China. Oil prices are causing ethanol prices to go up and farmers are planting more corn and less food crops. Monsanto supplies corn seed, therefore Monsanto makes money. Farmers are growing less food, and china is buying more food, therefore food prices rise. As oil prices rise, food prices are going to rise also and there is not much you can do about it. If anything, Monsanto is keeping corn prices more stable. Farmers are buying Monsanto corn for better yields so we can have more corn without increasing farm land. (Don't give me this BS that GMO corn produces worse yields, farmers aren't stupid, they buy the seed that makes them more money). If you are still angry that Monsanto is making so much money, then go buy some stock. By stock in all the ag companies because this food/oil problem isn't going to go away anytime soon.

by inferno at 9:14 PM on 23 May 2008
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