Required Report - public distribution

**Date:** 3/25/2004

**GAIN Report Number:** GM4014

GM4014

**Germany**

**Biotechnology**

**German Farmers\' Interest in Planting Bt-Corn**

**2004**

**Approved by:**

![](media/image1.wmf)Richard Petges

U.S. Embassy Berlin

**Prepared by:**

Dietmar Achilles

**Report Highlights:**

Currently, German farmers\' interest in growing biotech corn is limited.
The German Federal Ministry of Consumer Protection, Food and Agriculture
is opposing biotechnolgy in food and feed production. The German
Farmers\' Association and the Bavarian parliament are advising farmers
not to grow biotech crops before national liability regulations are
straightened out. Corn borer infestation is high in a limited number of
regions. Due to the small farm sizes in many areas of Germany, farmers
fear cross pollination of biotech crops to conventional and organic corn
crops. Total production area for biotech crops in 2004 is forecast at
500 hectares of Bt-corn.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Berlin \[GM1\]

\[GM\]

**German Farmers' Interest in Planting Bt-corn**

**Summary**: Currently, German farmers' interest in growing biotech
crops is limited. This is partly because of relatively low European corn
borer infestation, and cross pollination risk with biotech varieties due
to the small farm sizes in wide regions of Germany. Also, the hesitancy
of the German Farmers' Association to promote biotechnology limits the
interest of German farmers in these new varieties. The agricultural
committee of the Bavarian parliament recently advised Bavarian farmers
not to participate in the testing of biotech crop production before
national liability rules are finalized. The general opposition of the
German Federal Ministry of Consumer Protection, Food and Agriculture
against biotechnology in food and feed production is generally known.
The CDU, CSU and FDP (which are not part of Germany's coalition
government) are the only political parties publicly expressing support
for green biotechnology. The total production area for biotech crops in
2004 is forecast at 500 hectares of Bt corn.

Of the roughly 1.5 million hectares of corn area in Germany, about
350,000 hectares are at risk of infestation with the European corn
borer. The primary risk areas are in southern Germany reaching as far
north as the Oderbruch in Brandenburg. All of these regions have a
warmer climate, relative to other corn production regions in Germany.

Corn area Risk area

Bayern 390,000 \<200,000

Baden-Wuerttemberg 137,000 60,000

Sachsen-Anhalt 67,000 60,000

Hessen 30,000 20,000

Brandenburg 103,000 20,000

Sachsen 70,000 3,000

Nordtrhein-Westfalen 206,000 1,000

Rheinland-Pfalz 23,000 1,000

Source: Study of the German biotech industry, 2003

Not all of these 350,000 hectares have a high risk for corn borer
infestation, but the infestation level is increasing annually. Another
risk to corn production, the corn rootworm, is approaching Germany from
the southwest from France. German farmers fear that this pest will
arrive in Germany in 2004 or 2005.

To protect against the corn borer, farmers apply different strategies.
The most successful strategy in regions with a low level of infestation
is crop rotation plus careful plowing of the fields. Before plowing, the
corn stalks in the fields are chopped to small pieces to reduce the
survival chances of the borer larvae. In regions with somewhat higher
infestation levels, farmers make use a trichogramma strategy, a
biological form of pest control. This strategy is not successful in
intensive borer infestation regions. Here, only the application of
insecticides helps farmers to protect their crops. However, the problem
with chemical application is that farmers either have to have high
clearance tractors/sprayers or make use of helicopter spraying. Both
methods are relatively cost intensive. In addition, helicopter spraying
is strongly opposed by the German public because of the high chemical
drift potential in this densely populated country.

During the past several years, several hundred hectares of Bt-corn
varieties were planted annually for test purposes in Germany. In most
cases, the harvested corn was used as cattle feed on the corn producing
farm. These field tests by biotech corn seed producers revealed that
insecticide application and Bt-corn varieties achieved the highest
levels of crop protection.

The region with the most intense corn borer infestation is
Baden-Wuerttemberg. Theoretically, farmers here would profit most if
they would plant Bt-varieties. However, since farms and fields are
comparatively small in most of Baden-Wuerttemberg, farmers are unwilling
to take the liability risk resulting from GMO presence in organic crops
or other conventional crops labeled as free of GMOs. In addition, this
region is Germany's most important seed corn production area. Seed corn
producers want to avoid any contact with biotech corn since this would
make their seeds unmarketable.

Basically the only farmers who are relatively open to Bt-corn production
are those with large farms, which are mostly located in eastern Germany,
where corn borer infestations are very spotty with relatively low
intensity. One exception to this is the intensive infestation in the
Oderbruch in State of Brandenburg. These farmers have the option of
surrounding their Bt-corn areas with other conventional varieties to
avoid cross-pollination of neighboring farmers' fields. There are also
large farms in locations with high corn borer infestation levels in
Baden-Wuerttemberg, in the Rottal in Bavaria, in Hessen, and in parts of
Sachsen-Anhalt that are generally interested in using modern Bt-corn
varieties.

Through an annual application, the German Federal Seed Register approves
a limited import of corn seed varieties containing EU approved biotech
events. In 2004, a special import application was approved for 30.5 tons
of seed with the biotech event MON810 (Bt-corn), which is sufficient for
planting of about 1,000 hectares, however, we expect that only half of
the 30.5 tons will be imported. Approval was granted for seven
varieties, which are already in the multi-year seed registration process
but not yet approved. The maximum volume of approved seed imports per
variety ranges between 0.5 and 5.0 tons depending on the number of
performed test years. These biotech varieties may be freely planted in
Germany and do not have to be reported to any public biotech register at
the moment. Normally, these plantings are monitored by the developer of
the seed and/or the biotech event.

In 2004, about 100 hectares of Bt-corn are expected to be planted in the
framework of a production research program on a few farms in
Sachsen-Anhalt. The resulting crop will be used for animal feed on the
farms. The University of Halle in cooperation with the State of
Sachsen-Anhalt is going to monitor the program to gather information
about cross pollination and the needed rules for coexistence of
neighboring biotech and non-biotech production. The biotech seed
industry together with the State of Sachsen-Anhalt has provided a
liability fund of Euro 240 million to cover possible damage claims
resulting from cross-pollination.

In addition to the Sachsen-Anhalt production program, another 400
hectares are likely to be planted to Bt-corn varieties in other regions
of Germany. This biotech corn production is purely commercial, but will
be monitored by the biotech industry. Most of the resulting crop will be
used for feed directly on the farm. However, some of the biotech grain
could be used for brewing beer in Sweden. .

Rapeseed production is the most important oilseed crop in Germany.
However, its high potential for cross-pollination into neighboring
fields presently limits German farmers' interest in biotech rapeseed
production. Plant breeding experts believe that chances for the use of
biotech varieties might be greater in sugar beet and potato production
since pollination in these crops is extremely limited. Herbicide and
disease resistant beet varieties are already in the EU application
pipeline.

Many farmers interested in producing biotech crops fear that their crops
could be targeted for field destruction by biotech opponents.
Neighboring farmers may confront them with their general opposition to
green biotechnology; creating some fear of being stigmatized. In
addition to these direct fears, the German Farmers' Association recently
advised their farmers not to participate in tests for biotech crop
production. The Farmers' Association claims that the liability rules are
not yet finalized, creating an uncertain financial risk for biotech
farmers. Also, the agricultural committee of the Bavarian parliament
recently advised Bavarian farmers not to participate in any biotech crop
test production before the liability rules are finalized.

The German government is currently in the process of finalizing the
national genetechnology law, which includes regulations covering the
coexistence of biotech production, non-biotech production and organic
production in German agriculture and liability for biotech crop and feed
production. The German government perceives biotech crops as a potential
financial risk to those farmers who wish to produce and market crops
free from traces of biotech varieties. The current draft requires the
biotech farmers to publicly register fields planted to biotech crops. In
addition, farmers producing biotech crops are liable for any financial
loss to near-by non-biotech farmers, resulting from biotech
outcrossing/content. The biotech farmer also carries the burden of proof
that he did not cause any alleged damage, as opposed to the complainant
proving that the biotech farmer caused the damage.

Biotech farmers and the biotech industry will be required to create a
fund which covers all potential financial losses resulting from the
production of biotech crops. Legal experts claim that this liability
requirement is highly questionable and might not hold up against a legal
review.

The German conservative parties (CDU, CSU and FDP), which currently form
the opposition in the Bundestag but hold the majority in the Bundesrat
(the German Upper House), contest these excessive liability rules. Most
recently the leading German opposition parties, the CDU and CSU, held a
symposium on the opportunities of green biotechnology for German
agriculture. In addition to the many technical presentations, opposition
leader Angela Merkel gave a very supportive speech for biotech
production, challenging the Federal government and stating that the
proposed German genetech law is hostile for any major innovation in
German agriculture. In view of all the hurdles for biotech production,
German farmers are currently extremely hesitant to plant biotech crops.