Ethanol Blog

After the recent trade debacles with China over corn and distillers grains carrying a biotech trait, farmers may want to weigh the pros and cons of using GMO seeds, according to an article by Iowa Farmer Today (http://bit.ly/…).

Although Syngenta's Agrisure Viptera (MIR 162) trait was approved in the U.S. and other countries for some time, China did not approve it until late Dec. 2014. In most of 2014, China made trade with U.S. exporters difficult by rejecting shipments of DDG and corn with the trait, as well as making a series of unrealistic demands for certification.

The events of the past year led to great losses for U.S. traders and have resulted in a class-action lawsuit against Syngenta, which argues it should not have sold the MIR 162 trait in corn to farmers before it was approved in China, and that Syngenta failed to inform U.S. farmers planting the seed with the trait that their crops might not be marketable there.

Charles Hurburgh, Iowa State University grain-handling specialist, said these losses may come back to farmers in the form of basis, storage or transportation costs.

While the use of biotechnology presents some great opportunities for farmers such as resistance to insects and drought, it has also created complications for seed companies and grain handlers, and especially for farmers in terms of regulatory approvals.

Hurburgh also said he believes that stewardship agreements for biotech traits might be pushed more into the spotlight in the future to ensure such traits are properly channeled. Farmers may need to examine whether the benefits of the trait offset restrictions or limits to locations for sales.

In any case, Hurburgh said he believes that proposals for GMO-labeling will likely create additional grain-handling issues and could increase food costs as much as 15-20% to cover costs for companies to ensure their foods carry no GMO traits.

Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.

(ES)

© Copyright 2015 DTN/The Progressive Farmer. All rights reserved.