The USDA has put forward a plan in response to the ruling by a judge which would disallow the planting of Monsanto (NYSE:MON) sugar beets next year.
While offering several options in their plan, the USDA prefers to allow the planting of sugar beets in 2011 because it could result in a 20 percent drop in sugar production in the U.S. if they don't.
A court in California ruled the sugar beets could be produced again until May 2012 while a complete environmental impact study was performed; something the judge determined allegedly hadn't been done.
The USDA gave Monsanto permission to plant the sugar beets in 2005. Genetically modified crops are usually enhanced with the ability to resist Roundup herbicide, which is also produced by Monsanto.
Showing posts with label Roundup Ready Sugar Beets. Show all posts
Showing posts with label Roundup Ready Sugar Beets. Show all posts
Wednesday, November 3, 2010
Friday, October 22, 2010
Monsanto (NYSE:MON) Sugar Beet Ban Could Lower US Sugar Production by 20 Percent
In a study by the US Department of Agriculture on the ruling by District Judge Jeffrey White on banning Monsanto's (NYSE:MON) Roundup Ready sugar beets until further testing, the conclusion is sugar production in the U.S. could drop by 20 percent in 2011.
Daniel Colacicco, a USDA economist, concluded, "The limited availability of conventional seed will severely restrict plantings of sugar beet in 2011."
White ruled the sugar beet seed of Monsanto couldn't be planted again until more extensive environmental impact studies were completed.
In 2009, genetically modified sugar beet seeds accounted for about 95 percent of the crop grown in the U.S. Estimates are about 1.6 million tons of sugar beet production will be lost in 2011 from the decision.
Some thing there will be intervention of some type to keep that from happening.
Sugar beets already in the field are allowed to be harvested this year.
Daniel Colacicco, a USDA economist, concluded, "The limited availability of conventional seed will severely restrict plantings of sugar beet in 2011."
White ruled the sugar beet seed of Monsanto couldn't be planted again until more extensive environmental impact studies were completed.
In 2009, genetically modified sugar beet seeds accounted for about 95 percent of the crop grown in the U.S. Estimates are about 1.6 million tons of sugar beet production will be lost in 2011 from the decision.
Some thing there will be intervention of some type to keep that from happening.
Sugar beets already in the field are allowed to be harvested this year.
Monday, September 27, 2010
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.
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.
Wednesday, August 18, 2010
Monsanto (NYSE:MON) Sugar Beet Ban Troubling to Farmers
The decision by U.S. District Judge Jeffrey White to halt the use of genetically modified sugar beet seeds from Monsanto (NYSE:MON) has many farmers troubled, as the vast majority of sugar beet seeds are now modified seeds.
Judge White even said farmers could just go back to planting regular sugar beet seeds, showing he should stick to being a judge and not attempting to be a farming expert.
Farmers say, "There's not enough seed available in the non-GMO (genetically modified organism) varieties to plant all the acres that would be put into sugar beets."
If the ruling were to stand, seeds would have to be imported in an attempt to find enough to meet the demand in the United States. Seed prices would also skyrocket because of increased demand and lower supply.
Short term this won't have a detrimental effect on farmers and the market, but if it were to carry on too long, next spring planting season could be a disaster.
The ban was put in place by the judge until an environmental study could be completed, but hopes are to allow interim planting while the study is being conducted.
Judge White even said farmers could just go back to planting regular sugar beet seeds, showing he should stick to being a judge and not attempting to be a farming expert.
Farmers say, "There's not enough seed available in the non-GMO (genetically modified organism) varieties to plant all the acres that would be put into sugar beets."
If the ruling were to stand, seeds would have to be imported in an attempt to find enough to meet the demand in the United States. Seed prices would also skyrocket because of increased demand and lower supply.
Short term this won't have a detrimental effect on farmers and the market, but if it were to carry on too long, next spring planting season could be a disaster.
The ban was put in place by the judge until an environmental study could be completed, but hopes are to allow interim planting while the study is being conducted.
Monday, August 16, 2010
Citigroup (NYSE:C) Maintains "Buy" on Monsanto (NYSE:MON)
Analysts from Citigroup Inc (NYSE:C) wrote in a note to clients Friday that they're maintaining their "Buy" rating on the seed giant Monsanto (NYSE:MON) with a price target of $62.00.
News on Monsanto has been mixed lately, as they've made decisions to lower some of their seed prices in 2011 by as much as 75 percent to drive sales, which have been down because farmers have battled them on the high costs.
Negative news was the recent decision by a federal judge to ban the planting of new Roundup ready sugar beet seeds, which could have a dramatic impact on the company.
Over 50 percent of all sugar grown in the U.S. comes from sugar beets, and 95 percent of that comes from the Roundup ready sugar beet seeds of Monsanto, which could have a major affect on sugar prices if the ruling is held up ... assuming an appeal.
News on Monsanto has been mixed lately, as they've made decisions to lower some of their seed prices in 2011 by as much as 75 percent to drive sales, which have been down because farmers have battled them on the high costs.
Negative news was the recent decision by a federal judge to ban the planting of new Roundup ready sugar beet seeds, which could have a dramatic impact on the company.
Over 50 percent of all sugar grown in the U.S. comes from sugar beets, and 95 percent of that comes from the Roundup ready sugar beet seeds of Monsanto, which could have a major affect on sugar prices if the ruling is held up ... assuming an appeal.
Judge Bans Monsanto (NYSE:MON) Sugar Beets from Being Planted
Monsanto's (NYSE:MON) troubles continue to mount, as their latest setback is the banning of their genetically modified sugar beets by U.S. District Judge Jeffrey White.
The same judge ruled in 2009 that the U.S. Department of Agriculture hadn't done a sufficient environmental study concerning the sugar beets.
On a temporary and short term basis, the ban won't have an impact on the availability of sugar, as it doesn't apply to sugar beets already harvested or planted.
Sugar beets account for over half of the sugar crop in the U.S., and a whopping 95 percent of that is from sugar beets from Roundup ready seed, which is the subject of the ban.
One of the radical environmental groups suing, the Center for Food Safety, asserts all farmers have to do is go back to planting regular sugar beets seeds, as if they have the knowledge farmers do in knowing what's best.
Since sugar beets are planted in the spring months, this shouldn't have an impact until 2011. The farmers are now looking at what planting options are available next spring, assuming their isn't an appeal and the situation changes.
It could result in much higher sugar prices in the future for consumers, although we won't know until the process plays itself out. We won't find out what the unintended consequences may be until then.
One attorney called it a "victory for farmers, for the environment and for the public," but it was really only a victory for them. With 95 percent of the sugar beet production in the U.S. coming from farmers freely choosing to use genetically modified sugar beets, they've had that freedom now taken away from them, however you want to describe it.
The same judge ruled in 2009 that the U.S. Department of Agriculture hadn't done a sufficient environmental study concerning the sugar beets.
On a temporary and short term basis, the ban won't have an impact on the availability of sugar, as it doesn't apply to sugar beets already harvested or planted.
Sugar beets account for over half of the sugar crop in the U.S., and a whopping 95 percent of that is from sugar beets from Roundup ready seed, which is the subject of the ban.
One of the radical environmental groups suing, the Center for Food Safety, asserts all farmers have to do is go back to planting regular sugar beets seeds, as if they have the knowledge farmers do in knowing what's best.
Since sugar beets are planted in the spring months, this shouldn't have an impact until 2011. The farmers are now looking at what planting options are available next spring, assuming their isn't an appeal and the situation changes.
It could result in much higher sugar prices in the future for consumers, although we won't know until the process plays itself out. We won't find out what the unintended consequences may be until then.
One attorney called it a "victory for farmers, for the environment and for the public," but it was really only a victory for them. With 95 percent of the sugar beet production in the U.S. coming from farmers freely choosing to use genetically modified sugar beets, they've had that freedom now taken away from them, however you want to describe it.
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