Iowa StarLink costs $9.2 million

Aventis CropScience pays claims to farmers, elevators.

By JERRY PERKINS
Des Moines Register Farm Editor
09/15/2001 

Aventis CropScience, developer of StarLink corn, has paid $9.2 million to
Iowa farmers and elevators in premiums and compensation for losses tied to
growing and handling the genetically modified grain that contaminated the
grain supply. 

Payments to Iowa farmers and elevators from Aventis could top $10 million,
said Steve Moline, an assistant Iowa attorney general monitoring the payments.
Iowa farmers have received an average of $5,528 and elevators an average of
$4,616 for StarLink claims.

"Given the discounts in the market that developed for StarLink corn, the
payments are right where we expected them to be," Moline said.
Ed Beaman, executive vice president of the Agribusiness Association of
Iowa, said he's received calls from grain elevators "who feel they haven't
been paid on a timely basis or who feel they haven't been paid enough."
"I have called the Aventis people directly and got those cases resolved,"
he said.

The deadline for farmers to make a claim was Sept. 1, Moline said. More
than 400 Iowa claims still await payment from Aventis.

Although the government approved StarLink for use in livestock feed, it was
not cleared for human consumption after possible allergic reactions were
reported in people who consumed the protein that StarLink produces.
Hundreds of food products were recalled last year after testing showed
residues of the StarLink protein in taco shells and other food.

Aventis CropScience leased StarLink technology to seed corn companies for
use in their products. Aventis, based in Research Triangle Park, N.C.,
agreed to pay farmers a premium to keep StarLink corn off the market by
feeding it to livestock or sending it to an approved storage site that
would channel it to livestock feed.

It also agreed to compensate elevators for losses suffered from StarLink
being commingled in corn supplies.

StarLink corn was grown on 135,000 acres in Iowa last year, 40 percent of
the U.S. corn acreage planted to StarLink.

As much as 1 billion bushels of Iowa corn were estimated to be contaminated
with StarLink after last year's harvest.

Aventis reported to the Iowa attorney general the number of claims and
payments it made to Iowa farmers and elevators.

Although Aventis asked that the information be kept secret, Iowa Attorney
General Tom Miller released the reports to The Des Moines Register after
the newspaper requested the information.

Aventis chose not to contest Miller's decision, Moline said.
Iowa is one of 17 states where Aventis CropScience USA agreed to cover the
expenses of farmers and elevators.

Miller announced the agreement in January. It gave Iowa and the other
states authority to sue Aventis CropScience should it fail to live up to
its promises.

In July, the agreement was clarified to require Aventis to pay farmers
whose corn was contaminated through cross-pollination from nearby StarLink
fields, or who weren't told they had purchased corn that contained StarLink
genetics.

Aventis had refused to pay those farmers.

Aventis officials have declined to say how much has been paid nationwide in
compensation, but Aventis SA, the French drugmaker that owns Aventis
CropScience, took a charge of $90 million in its fourth quarter last year
to cover costs from the StarLink recall.

Costs could eventually exceed $200 million, some estimates say. 

By the numbers

Payments made by Aventis as of Sept. 4: 

Iowa farmers
Pending claims: 255
Claims paid: 950
Amount paid: $5.25 million

Iowa elevators
Pending claims: 176
Claims paid: 865
Amount paid: $3.99 million
Sources: Iowa attorney general and Aventis CropScience USA