What follows below is an excerpt from a larger article I wrote on Monsanto’s purchase of Seminis. At the time (January 2005) Seminis was the world’s largest vegetable seed company, and a supplier of seed to catalogs cherished by many small farmers and gardeners. The full article can be found in the Seed News archives on the Organic Seed Alliance web site.
I hope to do a follow-up on this story as we reach the third year anniversary of the acquisition.
A Brief History of the Development of the Seed Industry –
The Shift from Public to Private Seed Systems
One hundred fifty years ago the United States did not have a commercial seed industry; today we have the world’s largest. Some view this as real progress, a form of genetic Manifest Destiny. A nation once a ‘debtor’ in plant genetics now supplies the world. In 1854, seeds were sourced in the U.S. by way of a small number of horticultural seed catalogs, farmer (or gardener) exchange, on-farm seed saving, and through the beneficence of the United States government. Specifically, beginning in the 1850s, the U.S. Patent and Trade Office (PTO) and congressional representatives saw to the collection, propagation and distribution of varieties to their constituents throughout the states and territories. The program grew quickly so that, by 1861, the PTO had annual distribution of more than 2.4 million packages of seed (containing five packets of different varieties). The flow of seed reached its highest volume in 1897 (under USDA management) – with more than 1.1 billion packets of seed distributed.
The government’s objectives in funding such a massive movement of seed stemmed from the recognition that feeding an expanding continent would require a diversification of foods. To the early colonies, the introduction of wheat, rye, oats, peas, cabbage and many other vegetable crops was as critical to food security as was the adoption of the corn, beans and squash. Immigrants were encourage to bring seed from the old country, founding fathers such as Thomas Jefferson engaged in seed-exchange societies, and by 1819 the U.S. Treasury Department issued a directive to its overseas consultants and Navy officers to systematically collect plant materials.
The first commercial seed crop was not produced until 1866—cabbage seed produced on Long Island for the U.S. wholesale market. The industry flourished to some degree, but early seed trade professionals felt their growth was stymied by the U.S. government programs as well as the self-replicating nature of their product (that is, the factory contained within that product). In 1883, the American Seed Trade Association (ASTA) formed and immediately lobbied for the cessation of the government programs. The organization developed powerful allies, such as Grover Cleveland’s Secretary of Agriculture, J. Sterling Morton, who wrote that the government giveaway was “antagonistic to seed as a commodity-form and in direct competition with the private seed trade.” But the program was very popular with constituents, and the USDA’s seed budget was kept intact – at one point counting for a full 10 percent of the agency’s overall annual expenditures.
In the early part of the 20th century, the first wave of hybrids began to provide seed companies with a potential increase in product profitability (as farmers would now need to return to the seed distributor for materials each year). However, most of the hybrid development was occurring at Land Grant Universities, and these universities refused to give the companies exclusive rights to the seed. Once again, the industry felt its growth hindered by federal programs and complained of unfair trade practices. Mounting data also indicated a slowing in yield increases from seed developed in government programs. The industry used this last point to strengthen its argument for the privatization of seed development in order to foster greater food security.
In 1924, after more than 40 years of lobbying, ASTA succeeded in convincing Congress to cut the USDA seed distribution programs. The USDA still supported breeding at the state agricultural schools, and for a time these programs continued to compete with seed companies by developing ‘finished’ commercial varieties. Associations such as the American Society of Agronomy and American Society of Horticulture Science eventually convinced the public programs that their appropriate role was in training plant breeders, performing fundamental research, and creating raw materials and technologies for private industry to capitalize on. The LGUs began to increasingly serve in this capacity, developing inbred parental lines and breeding stock that the seed trade would use to create proprietary varieties.
These changes in the public role, along with improvements in hybrid techniques, led to the growth of the seed trade following World War II. The trade was well represented during this period by regional companies. The conversion to monocropping and large-scale corporate agriculture had not yet moved into full swing. The Santa Clara Valley grew vegetables and fruit and not internet startups, and Americans still planted their Victory Gardens. The seed trade reflected this diversity in food production.
In the 1960s, a few larger seed firms began to purchase smaller companies (mostly to acquire strong hybrid holdings). But the consolidations of this period were minor compared to the frenzy that would come with a Supreme Court ruling on June 16, 1980, in the case of Diamond v. Chakrabarty. Prior to the Chakrabarty decision, a plant (or animal) could be owned, but the genetics could not. This case cleared the patenting of life forms on the bases of their genetic coding. The PTO granted more than 1,800 such patents following the ruling. Companies that had no historical seed interests—primarily chemical and pharmaceutical firms—began purchasing seed companies. In a few short years, there were billions of dollars in mergers and acquisitions—with little to no regulatory oversight—creating for the first time a majority ownership of plant genetics by a few multinational companies. No other natural resource (marine, timber, minerals) has ever shifted from public to private hands with such rapidity, such intensity of concentration, and so little oversight...