Environmental Regulation, Market Power and Price Discrimination in the Agricultural Chemical Industry



The survey, administered to U.S. and Canadian retailers selling agricultural
chemicals directly to farmers and ranchers, included 12 herbicides and one pesticide that
are widely used both in Alberta and Montana. The agricultural chemicals included in the
survey were selected from a list of chemicals identified by the Montana Department of
Agriculture in collaboration with representatives of Montana commodity organizations
and agribusiness organizations that include agricultural chemical dealers. Alberta
Agriculture, Food and Rural Development pesticide experts then identified agricultural
chemicals on the Montana list that were also registered and used in Alberta.

Agricultural chemical companies market the same or very similar products under
different brand names in Canada and the United States (see table 1). Two of the 13
agricultural chemicals in this study, Mirage and Touchdown, were non-selective
herbicides used on fallow and some non-cropland areas. Six - Amine 4 and 2, LV6,
Bronate Advanced, Clarity, Achieve SC, and Discover - were herbicides used for
broadleaf weed control in wheat, barley and other small grain crops and on fallow and
some non-cropland applications. Four - Everest, Puma 1EC, Ally XP, and Express EP -
were selective herbicides used primarily to control grassy weeds, including wild oats in
wheat and barley and one was a general purpose insecticide, Warrior (with Zeon).

For each chemical, respondents were given descriptions of active ingredients and
formulations obtained from each chemical’s U.S. or Canadian product labels. They were
then asked to (1) provide prices for either two or three sizes of containers (generally 2.5
gallon, 110 gallon, and 220 gallon containers), (2) identify the manufacturer of the
chemical, and (3) provide any additional pricing information on quantity or manufacturer
program discounts to farmers. Respondents in both Alberta and Montana provided very

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