Beet Farmers Devastated Over Monsanto (NYSE:MON) Seed Ban

The decision by seemingly activist Federal District Court Judge Jeffrey White to ban genetically modified sugar beet seeds from Monsanto (NYSE:MON) has farmers crushed under the uncertainty of what will happen to their industry going forward.

White stated in his ruling, agreeing with the Center for Food Safety, which filed the lawsuit against Monsanto, that they had not been tested thoroughly enough to ensure safety of human consumption and possible environmental risks.

The Animal and Plant Health Inspection Service or APHIS, a unit of the USDA, deregulated the sugar beet seeds, leading to the lawsuit.

White ordered the USDA to prepare an environmental impact statement and to approve the crop again. That could take up to a period of two years, or possibly more.

Similar to their other genetically modified seeds, Monsanto makes them strongly resistant to their Roundup herbicide, which allows farmers to spray the beets without concern of damaging the crop.

The benefit is much higher yields and significantly lower cost inputs, as the need to water as much, use fuel and labor costs are lowered.

Proponents of the lawsuit and decision say it shouldn't be a problem for sugar beet farmers, as they can just go out and buy sugar beet seed, which they assert is plentiful.

According to Luther Markwart, executive director of the American Sugar Beet Growers Association, it's far from as simple as that.

As far as the seed part of it goes, finding non-genetically modified seed isn't as easy as stated. And once it is found, Markwart said it will be at least two to three years old, with no guarantees as to the viability of the seed. That assumes all sugar beet growers can even obtain the seed in the first place.

Markwart added that very little conventional seed has been grown for planting in the last couple of years, making it nowhere near as easy to find as some say.

He said, "If you can even get conventional seed it would be two to three years old, so its viability is a question."

That's only the beginning of problems for sugar beet growers though. New equipment like weed sprayers have been acquired to make way for the Roundup Ready seed. Farmers would have to go out and buy old equipment to use on the old seeds.

Just as difficult will be finding past herbicides used on conventional sugar beets, said Markwart. The market is no longer there, as approximately 95 percent of sugar beets are grown in the U.S. using genetically modified seed.

He concluded, only the Animal and Plant Health Inspection Service can save things for American sugar beet farmers, which has the authority to deregulate the beets partially or conditionally, which would pave the way to planting them in the coming spring season.