South America Calling

Argentine Farmers Must Declare Soy Seed Origin

Large and medium-sized Argentine farmers must declare the origin of seeds used in soybean crops, according to a government decree issued Monday, in a step designed to reduce black-market trading.

By June 30, farmers must specify the quantity of seeds reserved for their own use and the site of their storage.

The issue of black-market trading has hit center stage because of the dispute between Monsanto and the country's farmers over royalties for its new Intacta RR2 Pro soybean technology.

Argentine law allows farmers to produce seeds on the farm for their own use, royalty free, but Monsanto included a clause in the Intacta sales contract that obliges farmers to pay on those seeds too. It is also pressuring exporters, crushers and elevators to check payments have been made on cargoes.

Black market trade in seeds is very common in Argentina and limited Monsanto's royalties from the original Roundup Ready seeds

The rules apply to farmers who earn over 1.8 million pesos ($200,000), which effectively include most commercial grain farmers.

In 2014-15, Intacta was not widely used in Argentina, covering less than 5% of the 50 million acres planted but use will likely increase over the next few years.

(AG)

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