Attorney General's News Release

November 15, 2000

Nixon presses for further action on "Starlink" corn

Jefferson City, Mo. — Attorney General Jay Nixon and other state attorneys general are urging Aventis CropScience — the maker of "StarLink" genetically modified corn — to take action to protect the interests of farmers, grain elevators, consumers and others in responding to the revelation that StarLink corn has gotten into the grain chain and food supply.

Nixon and Attorneys General from 15 other states sent a letter to Aventis Tuesday (Nov. 14) confirming measures the company has promised to take in response to the situation and urging Aventis to take additional steps, including establishing claims-handling procedures so farmers and elevators can obtain speedy compensation if they incur costs or losses as a result of StarLink corn.

"We told Aventis that our goals are to protect the food supply, to keep the grain-handling system running smoothly to reduce any additional losses, and to protect the economic interests of farmers, elevators and others in the grain industry," Nixon said. "Aventis has taken some steps, but we urge them to go further."

StarLink corn must be kept separate from other corn because it is not approved for human consumption. StarLink was altered with a bacterial gene to make it resistant to corn borer caterpillars, but Aventis's EPA license for StarLink does not permit use for human food because the agency could not rule out a link between the StarLink protein and food allergies. StarLink grain can be used for animal feed and non-food industrial products.

The joint letter listed several assurances the company made to the attorneys general, including:

• Aventis has extended the deadline for farmers to participate in the "StarLink Enhanced Stewardship Program" (SES), and agreed that farmers who participate in it do not waive any rights to recover any additional damages they may incur as a result of growing StarLink corn.Aventis will pay 25 cents per bushel for StarLink and "buffer corn," but not for commingled corn. However Aventis will pay logistical costs (such as transportation and storage costs) for StarLink and commingled corn delivered to approved sites. Aventis also will "work with" growers if there are value discounts assessed against their commingled corn.

The attorneys general consider it important for Aventis to say it will "work with" growers, elevators or others if there are losses in value, because it indicates the company acknowledges certain responsibility for the situation.

• "Buffer growers" — growers who grew corn within 660 feet of StarLink corn — also are eligible to participate in the SES Program for the buffer strip corn, if the corn is contained or fed on the farm. If buffer growers use StarLink Logistics (working with Aventis to move grain to approved sites), then Aventis agrees to "work with" them if there are value discounts for commingled grain.
• Grain elevators that receive StarLink corn will be paid for additional transportation, demurrage and testing costs incurred in getting StarLink and commingled corn to approved delivery points. Aventis will "work with" grain elevators if there are value discounts for StarLink and commingled grain delivered to an approved site.

"Our letter asked Aventis to confirm those reassurances in writing, so there is no misunderstanding of the company's responsibilities and so it is completely clear that the same terms are available to farmers and elevators anywhere in the country," Nixon said.

The Attorneys General urged Aventis to take further steps, including:

• Aventis should quickly establish a claims handling system to compensate farmers, elevators and others who incur costs. The Attorneys General said they had reports that claims to Aventis are not being paid expeditiously. "Delays in payment can jeopardize the financial position of many in the grain handling industry," the letter said. "Undisputed claims should be paid within 30 days. This claims handling system should be made widely available, preferably on the Internet."
• Aventis should markedly increase logistical capabilities to prevent serious disruptions of the grain handling system. The Attorneys General said the food system can be protected and economic losses can be reduced if StarLink and commingled grain can be moved efficiently to approved sites for feed and industrial uses. To reach that goal, Aventis should identify more approve sites, hire additional staff to answer questions and remove bottlenecks, provide additional testing resources, and improve its communications about StarLink Logistics through the Internet and other means.

"Aventis must take further, concrete steps to accept responsibility for economic losses," the Attorneys General said. "It is inevitable that StarLink corn and commingled corn will suffer some loss in value." They said they wanted to have further discussions with the company about Aventis's pledge to "work with" producers, buffer growers, grain elevators and others concerning such loss in value.

Nixon also said farmers and others could take several measures to minimize the impact of the StarLink situation. He advised farmers to attempt to use Aventis's StarLink Logistics System in marketing their corn, since the company has taken a position that it will pay for logistic costs or loss in value more readily if corn is marketed via StarLink Logistics. Farmers should keep good records of payments and losses, and keep seed bags and any correspondence about planting, selling and handling StarLink or commingled grain. Nixon also encouraged farmers to test any grain if there is a question of StarLink contamination.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818