Reuters survey:
US bio-corn plantings to soar in 2002.

Christopher Doering / Reuters 9jan02

RENO, NV -- American farmers will shrug off European and Asian concerns about genetically modified food and boost U.S. biotech corn plantings by more than 13 percent this year, with a smaller increase planned for soybeans, according to a Reuters survey of more than 300 growers.

The straw poll, conducted at the American Farm Bureau Federation's annual meeting, found no slowdown in American agriculture's embrace of gene-spliced corn and soybeans despite concerns abroad about unknown risks to health and environment.

The biggest increase will come in bio-corn plantings, with a leap of 13.8 to 19.3 percent depending on the variety, according to the survey results. Plantings for the main variety of gene-spliced soybeans will climb by a smaller 8.3 percent.

However, plantings of genetically engineered cotton will fall by 2 to 8 percent in 2002, reflecting an overall decline in cotton expected this year, the survey showed.

The Reuters survey questioned 321 farmers at the annual meeting of the United States' largest grower group. Personal interviews were conducted at random and results do not attempt to weigh responses by state, size of farm or other criteria.

The results provide an early indicator of 2002 plantings of genetically modified crops. Most U.S. growers buy soybean, corn and cotton seeds at this time for spring planting.

BIO-CORN TO LEAP HIGHER

The Reuters poll found gene-altered corn plantings would soar in 2002 for both major varieties.

Roundup Ready corn seeds enable growers to use a single herbicide, which farmers say boosts crop yields and cuts spending on costly chemicals. Another type -- Bt corn -- is engineered to help a growing plant resist harmful pests.

Farmers surveyed by Reuters said they would sharply increase plantings of Roundup Ready corn by 19.3 percent in 2002. Plantings of Bt corn will rise by 13.8 percent.

The increase appeared to be due mostly to the end of a year-long controversy over a variety of bio-corn, known as StarLink, which was not approved for human food but contaminated some 430 million bushels of the U.S. corn supply.

"We've learned a lot from StarLink, and producers have learned to ask a lot more questions," said Bob Stallman, president of the Farm Bureau. "There's a greater degree of comfort with biotech products and the marketing of them."

The discovery of StarLink in U.S. taco shells and other food in late 2000 triggered widespread recalls and prompted discounted prices to angry farmers, some of whose corn suddenly tested positive for StarLink due to windborne pollen. StarLink, made by Aventis SA AVEP.PA, was pulled off the market.

The contamination also made Japan and some other buyers temporarily halt purchases of U.S. corn.

U.S. Department of Agriculture (USDA) data showed sluggish growth last year in bio-corn plantings, which rose a meager 1 percent to 26 percent of the entire U.S. corn crop, or about 19.3 million acres.

SMALLER RISE FOR GM SOYBEANS

Growers also said they would increase use of the already popular Roundup Ready soybeans by 8.3 percent. Bt soybeans -- used by a tiny number of growers surveyed -- will fall by 14.6 percent, according to the poll.

Many U.S. farmers have already switched to engineered varieties of soybeans during the past five years.

According to data from the USDA, nearly 68 percent of U.S. soybeans, or about 51 million acres, were genetically modified during 2001. That compares to 54 percent in the prior year.

"When you look at corn, soybean and cotton, and you're on a significant amount of those acres already, I can see where you'd take a step back and say that growth has stalled," said Randy Krotz, a spokesman for biotech giant Monsanto MON.N.

"But has the excitement and acceptance slowed in agriculture? Not at all. It's simply finding the next market," Krotz added.

Monsanto and its rivals are developing new products to combat problems farmers have with soybeans and corn. Next year, Monsanto is expected to receive approval for a seed to repel the corn root worm, which caused damage estimated at $1 billion to U.S. crops last year.

Some farmers said that while biotech plantings will rise in 2002, the outlook remains less certain in coming years due to consumer resistance in the European Union and Japan. The European Union has delayed new approvals of gene-spliced crops since 1998, when France and other members demanded tougher rules for testing, labeling and tracing biotech products.

"The rate of increase has slowed, and I think we are just hanging back and seeing how the whole issue plays out in terms of access to markets," said Stallman, of the Farm Bureau.

BIO-COTTON FALLING

However, gene-altered cotton plantings will shrink this year, the farmers said.

Bt cotton plantings will fall 8.4 percent and Roundup Ready cotton will decline by 2.1 percent, according to the survey.

The decline is blamed mostly on a global glut of cotton.

Agricultural economists at the meeting projected a 10 percent drop in U.S. cotton planting this spring because of low prices and bloated inventories after a record 20.06 million bale crop last year.

Wheat, another key U.S. crop, also has a bright future for genetically altered varieties, according to those surveyed.

The poll showed that 54 percent of farmers surveyed who already grow wheat said they would plant a biotech variety, when one becomes commercially available.

"I'd be quite interested," said John Lindstrom, a Utah farmer who was interviewed. "I'd look at value enhancement and nutritional value as to where it might have a higher market price."

Monsanto hopes to roll out the first bio-wheat seed in 2003. Development of gene-spliced wheat has taken longer than other crops because of the plant's trickier genetics.

Reuters poll of 2002 US biotech crop plans
10jan02

RENO, NV - American farmers will plant significantly more bio-engineered corn and soybeans but less cotton in 2002, according to a Reuters straw poll of growers on their planting intentions. Information for the poll was obtained through 321 random personal interviews at the American Farm Bureau Federation's national convention this week in Reno, Nevada.

The meeting, which tends to attract larger and more sophisticated farmers, was attended by more than 4,000 growers, spouses, agribusiness executives and others.

The 2002 Reuters straw poll is not scientific and did not attempt to weight responses by state, size of farm, or other criteria.

Agricultural economists speaking at the convention projected a 10 percent drop in U.S. planting of both biotech and conventional cotton this spring because of low prices and a global glut. The experts also forecast overall soybean plantings would rise about 1.1 percent and corn would increase about 2.6 percent.

The following table shows the results of the Reuters poll:

2002 PLANTING INTENTIONS - ALL CROPS (in acres)

                              Percent   No. of
             2002      2001    Change   Responses
Soybeans   109,647   110,697   -0.9      186 
Corn       108,397   104,244    4.0      221 
Cotton(1)   14,246    13,290    7.2       18 
Wheat       60,071    60,647   -0.9      155 
All crops  357,413   349,186    2.4      580 (2)

2002 PLANTING INTENTIONS - BIOTECH CROPS (in acres)

                               Percent   No. of
              2002     2001    Change   Responses
Roundup Ready: 
Soybeans    80,858    74,668     8.3      178 
Corn(3)      8,645     7,247    19.3       62 
Cotton(4)    8,260     8,435    -2.1       12 
Bt: 
Soybeans(5)  1,515     1,775   -14.6        8 
Corn        21,037    18,479    13.8       80 
Cotton       4,990     5,445    -8.4        9 
TOTAL:     125,305   116,049     8.0      349(2)

The survey also collected the following data from U.S. farmers regarding genetically modified crops:

Farmers who will plant a biotech crop this year:
Yes: 68 percent No: 32 percent

Farmers who planted a biotech crop last year:
Yes: 62 percent No: 38 percent

If you grow wheat, will you plant biotech wheat when it is available:
Yes: 54 percent No: 46 percent

Have you invested in special equipment/facilities to segregate biotech crops:
Yes: 12 percent No: 88 percent

Have you already purchased your biotech seed for this year:
Yes: 57 percent No: 43 percent

Do you have any production contracts for non-biotech crops:
Yes: 11 percent No: 88 percent

Notes:

(1) Excludes one farmer who will plant 3,500 acres of cotton in 2002 after not planting the crop a year ago.

(2) The number of responses may exceed 321 farmers because many planted more than one crop.

(3) Excludes one farmer who will plant 1,500 acres of Roundup Ready corn after not planting the crop a year ago.

(4) Excludes one farmer who will plant 1,250 acres of Roundup Ready cotton after planting 100 acres last year.

(5) Excludes one farmer who will increase his Bt soybean plantings to 1,200 acres from 200 acres in 2001.