GMO Issues Impacting Wisconsin’s Farmers, Elevators, And Processors For 2000 December 1999

1. GMO Issues Impacting Wisconsin’s Farmers, Elevators, And Processors For 2000December 1999 M.J. Ballweg, C.M. Boerboom, T.R. Fortenbery, J.G. Lauer, D.P. Nehring, J.L. Wedberg University of Wisconsin - Extension College of Agriculture and Life Sciences, UW- Madison

2. What are GMOs? • Genetically Modified Organisms • Transfer of a gene from one species into another host species • Introduced gene gives a new characteristic to the host plant, animal, or bacteria • “Transgenic” crop is a more accurate term

3. Improving Genetics is not new to Agriculture • Traditional crop breeding has used genes from the same species or closely related species • Biotechnology allows use of genes from different species

4. Examples of Gene Transfer in Agriculture and Medicine • Human insulin gene into a yeast cell • Edible vaccines into crops like bananas • Bt corn and Roundup Ready crops • Transgenic cows with milk that protects against Hepatitis B • Corn rootworm resistant corn

5. Grain Markets • The GMO debate may affect: • Export markets • Domestic foods markets

6. The Corn Market • The domestic feed market has not been a concern • 17% of corn is exported • 14% is used in the domestic food market

7. The Corn Market- Ethanol • Some corn by-products of ethanol production are exported to the European Union • If EU demands non-GMO by products, the ethanol market could demand non-GMO corn

8. What does this mean for corn? • A maximum of 40% of U.S. corn production could demand non-GMO corn • The market may not provide large premiums for non-GMO corn

9. Soybeans • 32% of 1999 production is likely to be exported as whole beans • Total crush for 1999 is expected to be 60% with 19% of the meal and 10% of the oil exported • Demand for non-GMO soybeans may be greater than for corn

10. Production Considerations • All GMO’s are approved for use in the U.S. • GMO’s for farm or feed markets are O.K.

11. Production Considerations • Correctly identify your specific hybrids and varieties • Is it GMO? • Is it non-GMO? • Know where you plan to market your crop

12. Non-GMO crops High oil corn Clearfield (IMI) corn White corn Waxy corn STS soybeans GMO crops All Bt corn hybrids Liberty Link corn Roundup Ready corn High oleic acid soybeans Roundup Ready soybeans Production Considerations

13. Switching between GMO and non-GMO hybrids or varieties? • Still need to consider: • yield • agronomic traits • pest management • Plus: • market risk • potential premiums

14. Segregating Crops • Several Wisconsin elevators have indicated that they will only take non-GMO crop for 2000 • Growers, elevators and exporters may need to segregate for non-GMO markets

15. Segregating Is Not A Simple Task • Some non-GMO seed may contain low levels of GMO germplasm • Contamination from pollen drift may occur • Contamination from planters, grain carts, trucks, grain bins, and combines may occur

16. Producing non-GMO Corn • Pollen from a field with a GMO corn hybrid can “contaminate” a neighboring field GMO corn pollen non-GMO corn most falls in 50 ft 660 ft for hybrid seed fields 2 miles is rare

17. What about Soybean Pollen? • Soybeans are self-pollinated and GMO pollen should not contaminate neighboring fields

18. Segregation is counter to Bt Resistance Management Bt corn block Bt corn block Bt corn block Bt corn block non-Bt corn refuge non-Bt corn refuge non-Bt corn refuge

19. GMO Testing • ELISA and PCR tests available • Tests are sensitive and can be quick, easy to use and inexpensive • Each load could be tested

20. Test Duration A few minutes Min. Sample Size 25 Grams (100 Kernels) Cost per sample Approx. $4 - $100 Coverage Specific to a single GMO event Test Sensitivity To < 0.1% Positive or Negative ELISA (Enzyme-Linked Immunosorption Assay)

21. Test Duration 1 - 2 days Min. Sample Size 2,500 Grams (10,000 Kernels) Cost of Test $250 - $300 Coverage Detects all GMO’s Test Sensitivity Commodities to <0.01% PCR (Polymerase Chain Reaction)

22. Status of Official Tests • USDA has not approved official tests • Grain industry is using commercially available testing

23. More On Tests • Once an official test has been approved, DATCP will provide testing • Plant Industry Lab (608) 266-7132 • Superior (DATCP) (715) 392-7850 • Milwaukee (DATCP) (414) 747-3077

24. Uniform Commercial Code Imposes Implied Warranties • Laws regulate misrepresentation of products including grain

25. Producers Can Realistically • State that GMO seed, as designated by the seed company, WAS NOT planted • State that non-GMO seed, as designated by the seed company, WAS planted • State that care was taken in avoiding contamination in bins, augers, and in the combine

26. Producers Should not say • The crop has no GMO germplasm • That no contamination has occurred

27. The Bottom Line • Check with likely purchasers. What are they requiring? Some may not know yet • Check carefully the language in any statement you’re asked to sign • Use caution when responding orally

28. Remember • Non-GMO crops may not be 100% free of GMO germplasm • Tolerance levels have not been set

29. Potential Premiums & Markets • Premiums for non-GMO grain were not common in 1999 • What about 2000? • Depends on supply/demand relationships

30. Export/Food Processing Markets • Be careful about planting GMO seed unless you have a guaranteed commitment, in writing, that delivery will be accepted

31. Know Your Local Market • Local elevators are subject to global market forces • Check forward contracts (GMO vs non-GMO)

32. Will Non-GMO Premiums Cover Segregation Costs? • Consider non-GMO crop production costs for: • cleaning • handling • storage • transportation

33. Finally . . . • Know additional costs and potential liabilities • Will the premiums for non-GMO exceed additional management costs? • Keep asking questions as we move ahead

34. Produced by Team Grain