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GMO wheat is a corn grower issue (July 15, 2002 -- CropChoice news) -- "Genetically modified wheat is absolutely a
corn marketing and price issue given the fact that foreign buyers have firmly
warned the U.S. grain industry, U.S. farmers, and the U.S. government that
they do not want- nor will they buy - genetically modified wheat," says Dan
McGuire, director of the Farmer Choice - Customer First program of the American
Corn Growers Association (ACGA).
On July 10, the Interim Agriculture Committee of the North Dakota
Legislature heard testimony concerning the issue of whether the state should allow
the
planting of genetically modified (GMO) wheat. Both proponents and opponents
of GMO wheat made presentations.
"If GMO wheat is introduced in the United States and cannot find a home in
the export market, it may also be rejected in the domestic milling and wheat
processing sector and ultimately be resisted by U.S. consumers. This would
result into a situation where all that unwanted wheat will become a cheap feed
grain, in direct competition with corn, thereby forcing corn prices lower
than they already are. This is a major economic issue for the farm sector,
most especially corn producers," added McGuire.
Iowa State University agricultural economist Robert Wisner told the N. D.
legislative hearing that about eighty percent of U.S. hard red spring wheat
exports go to twenty-two countries. Those countries currently require the
labeling of GMO crops and foods containing ingredients processed from GMOs.
Another 15 countries are expected to have similar laws within a few years. Wisner
predicted that GMO wheat could cost the U.S. 50 percent of its spring wheat
export market resulting in as much as a one-third decline in wheat prices.
"What has happened to the 'market-oriented' U.S. farm policy strategy?"
asked Larry Mitchell, CEO of the ACGA "Have we reversed this policy after fifty
years of hard work and after spending millions of producer funded grain
check-off dollars, and billions of federal tax dollars to create and expand
foreign markets for corn, wheat, and other grains? It appears so as our attempt to
force the production and acceptance of GMOs can only be described as a
'market-development-in-reverse' program."
"In the 2001/02 wheat marketing year (MY) total U.S. wheat exports only
reached 887 million bushels (50 percent of the export level in MY 1981/82) with
205 million bushels being hard red spring wheat, so losing 100 million
bushels per year of those exports is serious business with the year-over-year
impact being a major price depressant. Given the commingling and blending that
goes on with wheat classes, we could expect to see hard and soft red winter
wheat exports hurt as well," added McGuire. "There's also the issue of split
cargoes where a ship carries more than one class of wheat in its various holds.
All of this is just one more serious anti-customer, anti-farmer, and
anti-export development." |