March 22, 2001

GMOs Bring Increased Liability Risk for Producers

The development of transgenic crops and the capability to test for them have exposed producers to a new liability risk, according to a North Dakota State University agricultural economist. And that risk could have serious financial repercussions.

"Do you know where your crops are ultimately shipped to once they leave your farm?" asks Dwight Aakre of the NDSU Extension Service. "In the past, producers didn’t need to worry about that. Once payment was received, little thought was given to how or where the crop was utilized or even if it was to be used for human food, livestock feed or industrial purposes."

However, for 2001, the technology agreement that producers must sign to purchase some GMO seed states that the grower is restricted from introducing these commodities into channels of trade where the potential exists for export to markets where it is not yet approved for import, Aakre says. "Signing that agreement means you accept a risk that you have very little control over. If a ship load of grain arrives at one of these export markets, is tested and found to contain unapproved genetics and the source can be traced back to your farm, what is your responsibility?"

Aakre says the fact that U.S. agriculture has become dependent on the export market for sales of a significant portion of most commodities produced, makes the issue especially complicated. "Because some export markets do not accept all GMO crops, responsibility falls on the seller to guarantee the shipments are free of or within accepted tolerance levels for the unapproved genetics," he says. "To the extent possible, this responsibility for providing assurance of non-contamination with GMO materials is being pushed back to the individual producer."

The technology agreement also states that the producer has responsibility to provide any necessary crop isolation necessary to insure that pollen drift does not trespass on a neighbors crop. Pollen drift from a GMO crop may result in economic harm for a neighbor planning to market non-GMO crops.

How much liability is an individual producer exposed to? Aakre says this is a relatively new legal issue for producers and the implications are relatively unknown.

"It is not only the mixing of production from known GMO crops with production from non-GMO crops that is a concern. Agricultural production does not take place in a laboratory under controlled conditions. Natural contamination from pollination can and does occur meaning no producer can be absolutely certain of genetic purity," he says.

Aakre urges producers to learn more about the legal risks and liabilities associated with GMO crops. "Each producer has to determine what level of risk is acceptable," he says. "At the very least, take a look at your farm liability insurance policy. Is this liability even covered under your policy and to what extent?"

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Source: Dwight Aakre, (701) 231-7378, daakre@ndsuext.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu