Monsanto fears GM liabilities?
New contracts that Monsanto are now requiring farmers to sign when buying their genetically modified seed would seem to indicate that Monsanto realise that the use of such crops could lead to substantial claims against them for poor performance or other liabilities. Monsanto have already paid out millions of dollars in previous claims for defective GM crops. Here's what farmers are now required to sign up to:
"....that the limit of liability of Monsanto or any seller for any and all losses, injury or damages resulting from the use or
handling of a product containing Monsanto's gene technology shall be the price paid by the grower for the quantity of such product involved or, at the election of Monsanto or any seller, the replacement of such quantity. In no event shall Monsanto or any seller be liable for any incidental, consequential, special or punitive damages."
If Monsanto does not have confidence in their own seed products then what does this tell us? There have been problems with the performance of transgenic crops in the US for some time now despite the huge acreage planted ( see
http://www.btinternet.com/~nlpwessex/Documents/gmnebraskasoycomment.htm
).
"After reviewing Monsanto's 2001 Technology Agreement, I would discourage any farmer from signing this document," says
Dennis Howard, Oklahoma's Secretary of Agriculture.
"Despite the growing pains of transgenic varieties, our growers have jumped right in and planted Roundup Ready
soybeans. But I believe this agreement puts the seed industry and growers at a real crossroads, and I'm not so sure this
agreement is going to set too well with the people who have to pay for this technology," Alan Blaine,
Mississippi State University Extension soybean specialist (who has previously been critical of the agronomic performance of new transgenic soy varieties - see:
http://www.btinternet.com/~nlpwessex/Documents/gmagric.htm
)
NATURAL LAW PARTY WESSEX
nlpwessex@bigfoot.com
www.btinternet.com/~nlpwessex
====================================================================================
Monsanto Contracts: To Sign or Not to Sign.
12-01-2000 - Eva Ann Dorris, Mississippi Farmer, a Farm Progress publication
Growers who want to plant varieties containing Monsanto's biotechnology
traits in 2001 have some decisions to make.
Planting varieties with Roundup Ready or Bollgard traits comes at a price
and not just a price that can be paid with dollars. Under the 2001
Technology Agreement, growers have to decide if they believe strongly
enough in transgenic varieties to sign away their choice of legal recourse
should the technology or the variety fail to perform.
On the heels of new seed laws enacted or in the works in some states,
Monsanto has chosen to address the issue of seed and technology liability
through its technology agreement rather than through the courts.
By signing the agreement, growers agree to binding arbitration as the sole
method of settling any disputes that might arise involving performance of
the seed or the technology traits within that seed. Taking Monsanto or the
owner of the seed variety to court is no longer an option.
The American Arbitration Association (AAA), under its commercial resolution
procedures, will handle the arbitration. More information on the rules and
procedures of this organization can be obtained at www.adr.org.
Under the new contract, growers have 15 days from the time any issue
regarding performance or non-performance of the gene technology and/or the
seed in which it is contained is first observed to contact a Monsanto
representative.
Dave Rhylander, director of marketing in Monsanto's southern region, says
the time limit was included in the new contract because in past years some
growers have waited until harvest to file complaints, making it difficult
to determine the cause or effect of the problem.
If after field inspection the grower and Monsanto cannot reach an agreement
as to the cause or fault for the problem and a settlement cannot be
reached, the grower may then file a complaint with the AAA.
The AAA will notify Monsanto and/or the owner of the germplasm in question
of the complaint and allow a designated time for response. The cost to file and carry through with the arbitration process varies depending on the amount sought by the person filing the claim. Initially, the half the cost is paid by each party -- half by the grower and half by Monsanto or the company that owns the seed, depending on the whether the complaint is against the technology or the variety. However, in its final
judgement, the AAA can apportion fees and arbitrator compensation in the
award.
"This binding arbitration process will be much quicker and easier for all
parties," says Rhylander. "We want a quick resolution for farmers when
there is a problem. Binding arbitration has become a common method of
resolving disputes in many industries, because our legal system is just so
backed up."
Steve Hawkins, president of Delta and Pine Land Company, says he supports
the new agreement and feels it allows farmers a "clear path to get their
disputes taken care of. This agreement is not intended to limit their
ability to dispute, but to add structure to the process."
Adds Rhylander: "We feel this process is quicker, fairer to both sides and
comes to completion sooner. It is not an attempt to skirt the issues. We
all want any disputes settled quickly by knowledgeable people of
agriculture."
However, Rylander admits the current resource pool from which the AAA
selects arbitrators is weak on people trained in agriculture. "This is
something we, as an industry, are working on and are asking ag agencies and
commodity groups to help us with. The AAA will be recruiting and training
arbitrators with extensive agriculture backgrounds. The entire industry
needs to help identify these people," says Rhylander.
The contract, a mere two pages in length, packs a lot of punch. By signing
this contract, growers also must accept Monsanto's Exclusive Limited
Warranty, which states "that the limit of liability of Monsanto or any
seller for any and all losses, injury or damages resulting from the use or
handling of a product containing Monsanto's gene technology . Shall be the
price paid by the grower for the quantity of such product involved or, at
the election of Monsanto or any seller, the replacement of such quantity, .
in no event shall Monsanto or any seller be liable for any incidental,
consequential, special or punitive damages."
Another issue within the contract is the acknowledged awareness by growers
that grain with certain Monsanto biotechnologies is not yet approved for
export and must be channeled into appropriate U.S. markets.
Also stated in the contract is the policy that Monsanto does not warrant
the performance of non-Roundup-brand herbicides on Roundup Ready crops,
even though those herbicides are labeled for use on Roundup Ready crops.
Rylander says anyone wishing to purchase seed containing Monsanto's Roundup
Ready or Bollgard technologies will have to sign the new contract. That's a
decision ag leaders say growers should not take lightly.
"After reviewing Monsanto's 2001 Technology Agreement, I would discourage
any farmer from signing this document," says Dennis Howard, Oklahoma's
Secretary of Agriculture. "Not only does this contract severely limit the
options of the producer, it also limits Monsanto's liability. Marketing
agreements and contracts are only effective if they serve to protect the
interests of all parties involved. The protection of the Monsanto contract
is strictly one-sided and I would encourage producers to carefully consider
this before entering into this agreement."
In Mississippi, where close to 50% of that state's 1.6 million-acre soybean
crop was planted to Roundup Ready soybeans in 2000, and where stricter seed
quality laws were put into place this year, another warning is heard.
Alan Blaine, Mississippi State University Extension soybean specialist,
says he believes this new agreement pushes growers to put a lot of faith in
varieties they know little about. "Despite the growing pains of transgenic
varieties, our growers have jumped right in and planted Roundup Ready
soybeans," says Blaine. "But I believe this agreement puts the seed
industry and growers at a real crossroads, and I'm not so sure this
agreement is going to set too well with the people who have to pay for this
technology."
Bill Hawks, a north Mississippi grower, planted 5,500 acres of Roundup
Ready soybeans in 2000. However, he says he's going to have to look "long
and hard" at this agreement.
"I will have to take this to my personal attorney and let him advise me on
this one," says Hawks. "It looks like if we sign it, we are giving up a lotof our rights." ((Developed for DirectAg.com by Farm Progress. Copyright 2000, Farm Progress. ))