Amanda Antell  |  February 10, 2016

Category: Consumer News

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Syngenta

In recent corn market news, Syngenta is facing a new corn farmer lawsuit from South Dakota alleging that the genetically modified (GMO) corn seed producer caused him major financial damages. 

Like many farmers of the American agricultural industry, South Dakota plaintiff Harlan O.’s  income depends heavily on the publicly-determined market price of his crop. For Harlan, the crop that makes his living is corn and the corn severely affected by the Syngenta corn seed scandal. 

Similar to many corn farmers, Harlan had bought and grown the infamous Viptera corn seed without any knowledge of China’s initial rejection of the GMO corn. While recent corn market news states that China finally did approve the Viptera corn a couple years after the initial release, the decision came too late to the corn farmers of America, according to the claim. 

When the Viptera corn was first released, China rejected the corn seed for import. Unfortunately this information was not revealed to farmers until later, and afterwards the United States corn market dropped by 85% in 2014. Since this revelation, numerous corn market lawsuits have been filed against Syngenta seeking financial compensation. 

Along with rejection of the company’s Viptera corn seed, China had reportedly blocked many of American corn shipments due to the Viptera corn strain cross pollinating with other corn seed. 

The Viptera corn was developed with the MIR162 strain, which was meant to make corn genetically more resistant to pests such as black cutworms or corn earworms. Syngenta had started selling the Viptera corn seed to corn farmers in America in 2011, after it received approval in Brazil and Argentina in the same year. 

The year previous, Syngenta had submitted the Syngenta corn seed for import approval to China’s authorities but had been rejected. China had come to this initial decision in order to take a tougher stance against GMO foods and to encourage healthy living in its citizens. 

By late 2013, China had started turning away corn shipments from the United States indicated to contain the Viptera strain. As mentioned before, it was not until a couple years had passed that China approved the Viptera corn for import.

Overview of Syngenta Corn Seed Financial Damages

While this idea would ideally make pest control more convenient for farmers, those in the corn industry claim the Viptera corn seed induced severe financial stress and uncertainty for farmers. Before the release of Viptera corn seed, China was the third largest importer of corn for the United States at 2.5 million tons per year. In 2014, Chinese imports of American corn shipments were down to 375,000 tons with the market reduction indicating bad news for corn farmers.The result of the Viptera corn seed scandal has totaled $1-$3 billion in losses so far, with no end in sight. Syngenta is facing a growing number of corn farmer lawsuits, with the claimants alleging that Syngenta sold them the corn seed under false pretenses. Essentially, the farmers claim that Syngenta had sold them the corn prematurely, before gaining or confirming approval from countries with major stakes in the United States corn market. Corn market news indicates that it will take some time for the American corn market to recover, with many farmers opting to file legal action against Syngenta seeking financial compensation.The Syngenta Corn Farmer Lawsuit is Case No. 1:16-cv-01006-CBK, in the U.S. District Court of South Dakota, Northern Division.

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