More US Farmers Planting Non-GMO Soybeans This Year
NOTE: It may not just be in Europe that GM
acreage is in retreat. Wonder how they'll fiddle the figures next year :-)
http://www.non-gmoreport.com/articles/mar09/farmers_plant...
For the first time since 1996, acres of Roundup Ready genetically
modified soybeans could drop as more farmers decide to plant non-GMO.
Low commodity soybean prices, attractive premiums, and rising prices for
genetically modified soybean seed are leading American farmers to plant more
acres of non-GMO soybeans this year.
Representatives with soybean associations, universities, and grain buyers
all say that demand for non-GMO soybeans is growing, leading to more non-GMO
acres.
Genetically modified Roundup Ready soybeans have taken an increasingly
larger percentage of US soybean acreage each year since their introduction
in 1996, reaching 92% in 2008.
But this could be the first year that the trend reverses. Grover Shannon, a
soybean breeder with the University of Missouri, Delta Research Center,
thinks non-GMO acreage could account for 10% of total soybean acreage this
year.
"Record number of contracts"
"We are seeing more interest in growing non-GMO soybeans," says Mark
Albertson, director of marketing, Illinois Soybean Association.
With commodity soybean prices around $9.00 per bushel, a premium of $1.00 or
more for non-GMO is more attractive. "That is getting farmers' attention,"
Albertson says.
For example, Iowa-based ASOYIA is paying farmers as much as $2.75 per bushel
to grow its non-GMO low linolenic soybeans.
Albertson has talked to several farmers who haven't grown non-GMO soybeans
in eight years, but will this year because of the premiums.
Grain companies large and small are contracting farmers to grow non-GMO. "We
called all the companies buying non-GMO, and about one-half of them had
enough acres," Albertson said.
"We are seeing a record number of non-GMO soybean production contracts being
written this spring," says Greg Lickteig, senior group manager, The Scoular
Company. "It's a tremendous response."
"We see more growers switching to non-GMO production for 2009 planting,"
says Joe Hanusik, manager at Harmony Agricultural Products in Ohio.
University soybean breeders also see growing demand for non-GMO soybeans.
"The demand happened so fast. All of a sudden in the last year, farmers
wanted to grow non-GMO soybeans." Shannon says.
"The demand has been increasing in the last two years," says Bill Schapaugh,
a soybean breeder at Kansas State University. "The demand in 2008 was
greater than in 2007, and it is greater this year than in 2008."
Increases in commodity and food-grade non-GMO
Grain buyers report that acreage increases are expected for both generic
commodity non-GMO soybeans and specialty food-grade varieties.
"Conventional varieties can capture a premium at the larger companies and
many farmers like working with Cargill and ADM," says Tim Daley, a soybean
trader at Stonebridge, Ltd. "Higher premium food-grade beans are also
getting the interest of producers due to the premiums over Chicago Board of
Trade."
Chris Bradley, a trader with Ceres Commodities, sees a bigger increase in
acreage of commodity non-GMO soybeans. "Identity preserved food-grade
soybeans have increased as well but not to the degree of generic non-GMO,”
he says.
"Farmers upset with Monsanto"
Besides the higher non-GMO premiums, there are other reasons for the
increasing acreage of non-GMO this year. One is lower cost. "The Roundup
Ready system is not as cheap as it used to be," Shannon says.
The cost for Monsanto's Roundup Ready GM soybean seeds has increased from
$35 to $50 per bag while the cost for Roundup herbicide has increased from
$15 to $50 per gallon. "A lot of farmers are upset with Monsanto," Shannon
says.
"It's cheaper for farmers to plant non-GMO beans if they can limit their
inputs and still capture a good price for their production," Daley says.
"Non-GMO seed varieties are now available at significantly lower prices than
Roundup Ready lines," Lickteig says.
Lickteig also sees more farmers planting soybeans this year than corn. "With
high inputs costs for seed, fertilizer, and herbicide, farmers are seeing
the benefits of lower costs associated with putting in a non-GMO soybean
crop compared to corn."
Increasing problems with weeds becoming resistant to Roundup/glyphosate is
also a concern for farmers. "They are using more herbicides, which is an
added cost," Schapaugh says.
The organic food industry is also spurring demand for non-GMO soybeans, says
Craig Tomera, production agronomist/crop production manager at Northland
Organic Foods. "Organic food companies are switching to non-GMO soybeans
until prices for organics drop and the economy improves."
Seed challenges
The non-GMO soybean market faces challenges, especially with seed. With the
big emphasis on GM soybeans in recent years, many private seed companies
have focused their breeding efforts on GM varieties and phased out non-GMO.
"Seed companies are pushing GMO seed and so choices and quantities for non-GMO
seed are getting less and less available," Bradley says.
"Seed is in short supply with high yielding non-GMO soybeans simply due to
supply and demand," Daley says.
Shannon says the seed industry prefers selling GM seed because of the
technology fee requiring that farmers buy seed every year; farmers can often
save seed from non-GMO varieties. "The seed distributors don't want to go
back to selling non-GMO. They want to sell seed every year; it's more
profitable."
However, good non-GMO soybean seed varieties are becoming available through
some private companies in the US and Canada and through many US
universities.
For those farmers wanting to jump on the non-GMO bandwagon, the time to act
is now. “We are telling farmers that if they are interested in growing non-GMO,
they better find a buyer now,” Albertson says.
For a list of companies buying non-GMO soybeans, visit
http://www.soybeanpremiums.org/.
Copyright The Organic & Non-GMO Report March 2009
Organic Consumers Association
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