UNCERTAINTY CONTINUES TO PLAGUE GENETICALLY MODIFIED CROPS INTO THE NEW YEAR No Good News in Store for Biotechnology Companies as U.S. Farmers Turn Their Backs on the Planting of GMOs TULSA, OK. January 4, 2000---As corn producers enter the new year, the American Corn Growers Association (ACGA) sees no change in the uncertainty facing genetically modified crops (GMOs). In fact, the likelihood is that both foreign and domestic opposition to these products will continue to grow. "Since last March, U.S. trading customers in Europe, Asia, India, Brazil, and Mexico have been very clear in their refusal to purchase GMOs. It is time our governmental leaders and grain exporters recognize this opposition and act accordingly," said Gary Goldberg, Chief Executive Officer of the ACGA. In Europe, most major supermarket chains are now rejecting genetically modified food products, while in Asia, major beer breweries and Japan's largest flour miller will stop using ingredients produced from GMOs. In Mexico, the nation's largest tortilla maker has announced that they will no longer purchase GMO corn. Brazil recently ripped out their GMO soybean seed crops so that they can supply the world with non-GMOs. "Everywhere we turn, our customers are rejecting GMOs. It is time that we return to the premise that the customer is always right, and that it is the responsibility of American agricultural producers to supply the market what it demands. In this case it is non-GMO products," added Goldberg. Other important issues that surround the GMO situation for the year 2000 includes the questions of certification, segregation, cross-pollination, corporate concentration, product labeling and liability. The recent meeting of the National Grain and Feed Association included discussions of grain contracts that could allow an elevator to reject the delivery of GMOs. If this action were taken, not only would American farmers face the loss of foreign markets, but the likelihood of limited domestic markets to deliver their crops to. Recent statements by a leading agricultural economist for the Federal Reserve Bank predicted higher consumer food costs because of the expense to segregate, test and label GMO products. The liability question also continues to face agriculture. Who is legally responsible for contamination of a neighbor's field? Will farmer begin suing farmer over cross-pollination or will the liability rest with the seed corn companies where it belongs? On the issue of segregation and certification, who will bear the financial burden of testing crops and the added expense of keeping GMOs separate from non-GMOs? All indications point to a sizable reduction in GMO seed purchases for this coming season. The uncertainty over market availability caused by consumer resistance, and the questions of liability and segregation are driving farmers away from genetically modified seeds. The ACGA prediction of a 20 percent to 25 percent reduction in GMO planted acres seems more likely everyday. "If production agriculture has not been able to answer these questions to their own satisfaction, they may want to consider planting alternatives to GMOs. After all, can farmers afford to plant a crop in the spring that may not be marketable come fall? Or will their GMO crop face sizable discounts come harvest time or even premiums for non-GMOs," added Goldberg. The American Corn Growers Association will continue to protect the interests of this nation's farmers who are caught in the middle of this dispute between seed dealers, chemical companies, grain exporters and processors, foreign consumers and U.S. trade policy. Through no fault of their own, farmers are facing the uncertainty of market loss, increased expenses and lower farm income. "The problems with genetically modified crops will not be going away anytime soon. Nor will the likelihood of questionable export markets, legal liability and increased costs for certification and segregation. We suggest that farmers examine their own individual farming operation to weight any benefits versus the risks of GMOs," concluded Goldberg Contact: Gary Goldberg, 918-488-1829 acga@acga.org