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Posts Tagged ‘regulatory’

Warning – this is not objective reporting and contains cynicism and sarcasm. But then again, who needs objectivity, not our Federal agencies…read on….

On September 26th Monsanto announced the “Biotech Yield Endorsement Program”(BYE), a partnership with the Federal Crop Insurance Corporation (FCIC) which will give a 20% discount on crop insurance premiums to farmers who plant Monsanto varieties that feature YieldGard Plus with Roundup Ready Corn 2 or YieldGard VT Triple technologies. In recent days there have been a slew of new press releases and articles on this (it is time to be buying your spring seed you know).

Before I get into this and complete blow a gasket, let me first key you in on the mission of the FCIC. From the FCIC web page:

The Federal Crop Insurance Corporation (FCIC) promotes the economic stability of agriculture through a sound system of crop insurance and providing the means for the research and experience helpful in devising and establishing such insurance.”

Product not Practices, and Protocols without Public Oversight

The big news isn’t the USDA having a partnership with Monsanto, as they already hold a joint patent on Terminator Technology with the seed company, but rather that it is the first time that the FCIC has allowed a premium discount for a specific commercial product. Normally the FCIC supports farmers making good decisions in practices, that is minimizing risk by choosing the best strategies in irrigation practices, pest management, harvesting or processing, and so on. Product premiums are a bit odd. If John Deere makes a cultivator that leaves less of the harvest for the field mice (thus reducing risk of loss), should farmers get a discount on their crop insurance for using the new model? Is the FCIC really going to go into the product endorsement business?

On September 26th I called FCIC to confirm that this tax-payer funded, federal insurance program, administered under the US Department of Agriculture was indeed offering such a program. FCIC Board Executive Secretary, Brent Doanne, did confirm that this was a first for the organization, but noted that section 1523(D) of the Federal Crop Insurance Act allowed for the development of discount policies if a company could prove that their product clearly demonstrated reduced risk in the field. In this instance the FCIC board allowed for Monsanto’s field trial data to stand as sufficient evidence of clear demonstration; third party verification that the biotech products really reduce risk and maximize yield wasn’t necessary according to Mr. Doanne. But, as he said, “They have thousands and thousands of acres of data.” And hey, big numbers always means good science.

Let’s outsource regulation to the private sector!!

Yes, yes, the government has spent billions of dollars creating agencies to manage regulatory oversight of our environment, public health, economy, and so on. But people still get sick and rivers get polluted, so maybe they haven’t done such a good job. In fact, they’ve done such a bad job let’s go ahead and hire someone else to do it for us. Besides, we can’t afford to spend tax-payer money on regulatory testing – as we have the newly approved energy bill and the oil industry needs that $13.5 Billion in taxpayer funded incentives that the new Energy Bill provides because they only made $35 billion in NET profits last year. Let’s outsource regulatory oversight to people who know how to make money, not spend it, like those government bureaucrats.

Okay, enough sarcasm. The reality is that the FCIC trusts the Monsanto generated data, but they are going to keep their eyes open. Mr. Doanne did say that the FCIC will monitor yield for several years to determine if Monsanto’s products really do result in reduced yield risk. I find this to be an odd regulatory protocol, kind of like buying a mail order bride isn’t it? Not sure what you’ll get but boy they say she’s a beauty, so let’s trust em. Just as the FDA and other federal agencies are now trusting corporations to verify their products efficacy and safety (and isn’t Vioxx great? And nah, OxyContin isn’t addictive), so now another USDA agency continues to avoid regulatory responsibility. They ignore not only their public duty, but deny the immense economic benefit that unregulated approval of these products has for the corporations whose revolving doors they sashay in and out of like belles at the ball.

What? Benefit to Monsanto?

As states such as Iowa launch anti-trust investigation into Monsanto marketing practices the FCIC has in one fell swoop approved a policy that will result in an obvious marketing advantage to the company that already dominates the corn market. In addition to calling Mr. Doanne I also tracked down Curt Sindergard. Mr. Sindergard is a FCIC board member, and Iowas soybean and corn farmer, and seed dealer for DeKalb – which is of course owned by Monsanto. Mr. Sindergard told me that the FCIC board does not see this as favoritism to Monsanto in that other seed companies may petition for similar discount programs. “Monsanto invested a lot of money and time in getting this approved by the (FCIC) board. Other seed companies, competitors to Monsanto, will likely benefit from the precedent and put their own traits forward for similar programs.”

Mr. Sindergard also noted that this will benefit biotech usage, and that the usage of any technology that reduces risk of yield loss is a good thing for farmers. As he put it, “We (FCIC Board) see this as a way to support future enhancement of biotech traits.” Is this the FCIC mission? To support particular technologies? I thought they were in the insurance business. Oh yes, but the insurance business often colludes with the pharmaceutical sector in human health, why not in agricultural systems? Could it be that having a representative from the biotech seed sector on the FCIC board, such as Mr. Sindergard, is just a tad bit inappropriate? Just what does he know about insurance? Economics? Research? Here’s his bio: http://www.rma.usda.gov/fcic/sindergard.pdf

I suppose being a deacon he does have some insurance background. Plant your seeds and say your prayers.

But Hey, the FCIC gives Organic special treatment too

Meanwhile organic farmers are forced to pay an additional 5% surcharge for federal crop insurance, but are paid out on claims at conventional crop values as opposed to the higher, true, organic market value. When I asked Mr. Doane about this surcharge he said that it was, “Necessary because of the higher risk associated with organic farming.” When I pressed him to document that additional risk with research he said that the FCIC was still collecting data to determine just how high the level of risk was from growing organically. Well thank goodness they’re doing their regulatory homework and spending our dollars researching the dangers of organics. In other words organics is presumed guilty of being a substandard system of production with higher risk until proven innocent, whereas industry driven biotech claims are taken as the gold standard of acceptable research? Does the FCIC have an organic or low-input agricultural representative on their board? No. At least not until Monsanto goes organic.

 

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