Nebraska is the third largest producer of corn in America. In 2014, the United States Department of Agriculture reported that Nebraska corn farmers grew one billion, six hundred million bushels of corn in crop year 2014. There were nine million three hundred thousand acres of corn planted in 2014 in the State of Nebraska.
The yields in Nebraska for corn per acre vary greatly. Non-irrigated corn can yield as low as 70 bushels per acre to over 160 bushels per acre depending on the amount of available moisture or rainfall. Irrigated corn acres can yield under 150 bushels per acre to over 260 bushels per acre.
Nebraska corn farmers use the resources set before them of land, soil types, sunlight and water to create impressive yields. Farmers face risks of unpredictable weather and all manner of pests and blights, which can harm their crops. Once their crops are harvested and farmers go to market, again there are all manner of perils, which can affect price and cannot be avoided. However, one peril farmers neither count on nor deserve is a careless seed company allowing its unapproved GMO traits to wreck the export market.
In 2013 and 2014 China detected MIR-162 a genetic trait belonging to Syngenta in shipments of American corn at China’s borders. China, like America, and most countries regulate which genetic modifications are allowed into its country. Syngenta applied to China for approval of MIR-162 corn (Agrisure) and 5307 corn (Duracade), Syngenta did not wait for approval of the traits by China before putting them into the market place. As a direct consequence of this careless behavior, China rejected American corn contaminated by Syngenta traits. American corn prices crashed in all states including Nebraska.
Naturally, as a commodity, the price of corn is affected by many things. However, one undeniable factor affecting corn price is any disruption in the export market. Syngenta caused part of the largest price drop in corn in American history in 2013 and 2014 when China banned American corn due to contamination by Syngenta’s traits.
In 2013 and 2014 Nebraska corn farmers grew around three billion two hundred million bushels of corn. If Syngenta caused a $.50 drop in price, that would equate to $1.6 billion of injury to Nebraska corn farmers. Whether the price drop determined by a jury is higher or lower, there is but one conclusion. Syngenta caused hundreds of millions of dollars of losses to Nebraska corn farmers.
The price drop could have been avoided in part if Syngenta had exercised reasonable care. Thus Nebraska farmers’ financial losses from corn sales at artificially low prices in 2013, 2014, and 2015 could have been avoided. There is a reason thousands of Nebraska corn farmers have attended town hall meetings and filed claims against Syngenta to recover their losses. If you sold corn in 2013, 2014, or 2015 do not delay in consulting with an attorney.
Written by:
Jon Givens
Watts Guerra LLP
4 Dominion Drive, Bldg. 3, Suite 100
San Antonio, Texas 78257
Phone (210) 447-0500
Email jgivens@guerrallp.com
* This information is provided to supply relevant information concerning the GMO corn lawsuit, and should not be received as legal advice. Legal advice is only given to persons or entities with whom Watts Guerra LLP has established an attorney-client relationship. If you have another lawyer in the GMO Corn lawsuit, you should consult with your own attorney, and rely upon his or her advice, rather than the information contained herein.
© Watts Guerra LLP 2015
