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Seed patents choke competition and farmer subsidies

Ars Technica •
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The United States remains one of the few nations that permit patents on plant varieties, letting a handful of corporations dominate seed markets. The US Department of Agriculture reports two firms control over 70% of corn and soybean seed sales, while the top four cottonseed players command nearly 94% of that segment. This concentration lets patent owners curb competition and steer subsidies into private coffers.

Genetically engineered seeds have surged in cost since the 1990s, climbing 463 percent while farmer incomes rose just 56 percent. An August 2025 study found seed firms lift prices by half a percent for every 1% rise in farm subsidies, effectively passing taxpayer assistance straight to corporate balance sheets. The price gap squeezes growers’ margins and reduces seed diversity.

In a May 2026 filing, the Justice Department’s Antitrust Division claimed seed patents stifle competition and research, hinting at a policy shift. The document cited a 2023 Corteva lawsuit against Inari over sequencing patented seed material, emphasizing that blocking such analysis harms downstream breeders and public safety. A ruling limiting these patent extensions could reopen the market to broader innovation.