ACGA Speaks Against GM Wheat in North Dakota

ACGA Speaks Against GM Wheat in North Dakota

WASHINGTON--The Interim Agriculture Committee of the NorthDakota Legislature on July 10 heard testimony both in favor of and against theplanting of genetically modified (GM) wheat in the state. Members of theAmerican Corn Growers Association (ACGA) attended the meeting to voiceopposition to planting GM wheat, reasoning the wheat will eventually drive cornprices down by becoming competition as animal feed.

"Genetically modified wheat is absolutely a corn marketing and priceissue given the fact that foreign buyers have firmly warned the U.S. grainindustry, U.S. farmers and the U.S. government that they do not want--nor willthey buy--genetically modified wheat," said Dan McGuire, director of theFarmer Choice/Customer First program of ACGA (www.acga.org)."If GM wheat is introduced in the United States and cannot find a home inthe export market, it may also be rejected in the domestic milling and wheatprocessing sector and ultimately be resisted by U.S. consumers. This wouldresult into a situation where all that unwanted wheat will become a cheap feedgrain, in direct competition with corn, thereby forcing corn prices lower thanthey already are. This is a major economic issue for the farm sector, mostespecially corn producers."

Iowa State University agricultural economist Robert Wisner said at the NorthDakota legislative hearing about 80 percent of U.S. hard red spring wheatexports go to 22 countries. Those countries currently require the labeling of GMcrops and foods containing ingredients processed from genetically modifiedorganisms (GMOs). Another 15 countries are expected to have similar laws withina few years, according to Wisner, who predicted GMO wheat could cost the U.S. 50percent of its spring wheat export market, resulting in a decline in wheatprices by as much as one-third.

"In the 2001 to 2002 wheat marketing year, total U.S. wheat exports onlyreached 887 million bushels (50 percent of the export level in marketing year1981-1982) with 205 million bushels being hard red spring wheat, so losing 100million bushels per year of those exports is serious business with theyear-over-year impact being a major price depressant," McGuire said."Given the commingling and blending that goes on with wheat classes, wecould expect to see hard and soft red winter wheat exports hurt as well. There'salso the issue of split cargoes where a ship carries more than one class ofwheat in its various holds. All of this is just one more serious anti-customer,anti-farmer and anti-export development."