A new Syngenta lawsuit was  filed in an Iowa federal court by Deere Run, LTD, which accused Syngenta of contaminating the U.S. grain system costing the company profits.

Syngenta develops, produces, and sells genetically modified corn and soybean seeds. In 2011 Syngenta began selling a new hybrid corn seed called Viptera.

Syngenta claimed Viptera increased crop yields due to improved insect resistance. Before genetically modified foods can be sold, they must be approved by the appropriate government agency. According to the lawsuit, Syngenta began selling the genetically modified seeds within the U.S. prior to gaining approval from other countries.

Although some countries eventually approved Viptera, China and several other key export countries had not. In 2014, Syngenta began marketing a new genetically modified seed known as Duracade, which contains some of the genetically modified traits of Viptera.

Deere Run alleges that Syngenta began selling Duracade domestically knowing that Viptera had not been approved and was unlikely to be approved by nearly 25% of the export market.

Overview of the Importance of Corn and Foreign Exports

China has become a key export country for U.S. farmers growing and selling corn products. According to the Syngenta lawsuit, nearly 20% of corn is exported to foreign countries each year.

Revenues on corn exports for the years 2011-2012 came close to $18 billion. Over the last five years China has become a major market for corn exports.

China, however, has been averse to new genetically modified crops, and the country requires extensive testing before a GMO crop is approved for import. Due to China’s strong GMO resistance, the country has a strict zero tolerance policy on unapproved genetic traits.

Each year Iowa alone generates $9 billion of revenue in agriculture commodities. Of that $9 billion, 40% is generated from corn products. The different varieties of corn available on the market are extremely difficult for farmers to keep separated.

Corn replicates through cross-pollination, meaning pollen can easily drift long distances (across fields) to pollinate with other corn plants. Corn is also a co-mingled commodity, meaning hundreds to thousands of farms from similar regions store their product in the same grain elevators for resale.

This co-mingling became a major problem for the U.S. in 2013 when shipments of corn exported to China tested positive for Viptera. Due to China’s zero tolerance policy for genetically modified traits, U.S. corn was banned from entering the country.

Even though plaintiff Deere Run did not plant Syngenta’s genetically modified corn, the company alleges problems with that product cost them corn sales. In the Syngenta lawsuit, Deere Run alleges that Syngenta acted selfishly and with a complete disregard to farmers.

The lawsuit brings claims for negligence, nuisance, and strict product liability. Deere Run seeks both compensatory and punitive damages.

The Syngenta Lawsuit is Case No. 1:15-cv-13, in the U.S. District Court for the Southern District of Iowa, Western Division.