October 20, 2000

For Immediate Release:

Contact: Ben Lilliston, Institute for Agriculture and Trade Policy, 612-870-3416

Minneapolis – The buy back plan proposed by Aventis for its genetically engineered Starlink corn may be a bad deal for some farmers, and more time is needed for farmers to consider the deal. The Minneapolis-based Institute for Agriculture and Trade Policy (IATP) called on Aventis and the US Department of Agriculture to extend the deadline for at least another ten days to allow farmers to consider options, and get more answers to numerous questions regarding the buy back plan.

The buy back of Starlink corn became necessary when it was discovered in taco shells. Starlink has only been approved by the Environmental Protection Agency (EPA) for animal consumption. There have been several highly publicized recalls from Taco Bell and Safeway taco shells because of contamination from the Starlink corn.

Aventis was responsible for educating farmers on the need to segregate Starlink from the food supply, but numerous reports from farmers around the country indicate that the company did little to inform them about proper handling procedures. In an effort to limit the amount of Starlink entering the human food supply, Aventis is participating with the USDA in a plan to buy back the corn from farmers.

"Aventis made the critical mistake of not educating farmers about how this crop should be handled," said IATP’s Niel Ritchie. "Now they are trying to pressure farmers into making a snap decision on what appears to be a deeply flawed buyback plan. The deadline for this buyback needs to be extended until farmers can have answered some basic questions."

The controversial buyback plan may pay farmers below the current market value for their corn in some parts of the country. In addition, many farmers around the country elect to sell their harvested corn in the winter months, when corn prices are traditionally higher. Others may choose to wait to sell their corn for tax purposes. These options would be eliminated as part of the buy back plan.

Much of the recall efforts, and the extent of Starlink in the food supply has been, continues to be unknown. Questions important to farmers growing Starlink, and farms next to fields growing Starlink, include:

• To what extent will farmers be reimbursed if their crop has already been co-mingled with non-Starlink corn within their own storage space on the farm?
• What options are available if farmers decide not to participate in the buy back program?
• Who is responsible for what could be considerable transportation costs associated with participation in the program?
• How should farmers address problems of Starlink contamination in next years crop, and who will compensate them?
• How should farmers who planted Starlink in 1999 address problems of contamination in this year’s crop?
• How is liability being assigned in the case of contamination which could lower the value of the crop?

Under the current plan, it is possible that Aventis could actually profit from the buy back deal. If Aventis buys the corn back at the October 2 price, plus 25 cents per bushel, they could re-sell the corn at a higher price at a later date.

"Thus far, the US Department of Agriculture has been extremely quiet on this recall," says Ritchie. "One has to wonder whose interests are they representing? Are they ensuring that farmers, who are caught in the middle of this thing, get fair compensation from Aventis for their crop?"

It has not been made clear by Aventis or the USDA why the October 20 deadline was chosen. Until more information is available to farmers about their options, the deadline to participate in this plan should be extended at least another 10 days.

The Institute for Agriculture and Trade Policy is a partner of Genetically Engineered Food Alert – the coalition which discovered the presence of Starlink in Taco Bell and Safeway taco shells.

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