Union Farmer - Winter 2001

Dead End - GMOs as a Path to Profit

The Convention saw a similar consensus develop on the economic riskiness of growing GM crops. In the panel on GMO profitability, University of Saskatchewan agricultural economist Harley Furtan and Dan McGuire of the American Corn Growers Association both pointed to the dubious nature of claims that GM crops save farmers money, and emphasized the damaging uncertainty that this technology has created in the world market.

Furtan cited figures showing that on-farm savings on Bt corn from reduced pesticide use are offset by the higher price of the seed, and questioned who captures whatever economic benefits there may be. McGuire went further, noting that the use of GMOs can actually contribute to keeping grain prices down, both by nudging crop estimates upwards and by reducing market demand for North American grain in countries where GMOs are becoming less acceptable.

"Are GMOs simply a technology still searching for a need?" asked McGuire. "Certainly the seed patenting and production contract issues together with the liability question gets us right into the bigger and very serious issue of corporate concentration in agriculture. Is this a good trend for farmers and rural communities? Obviously not!

"Whether it's mergers and acquisitions in the grain and livestock marketing system or in seed genetics, a few multinational corporations are controlling the entire world market for agricultural commodities. That structure has the money to keep their agenda alive in the power centers of government around the world. Currently, millions of farmers have less to say about farm and trade policy than those big corporations. That's outrageous!"