MINIMUM REQUIREMENTS FOR ATTEMPTED IDENTITY

MINIMUM REQUIREMENTS FOR ATTEMPTED IDENTITY-PRESERVED PRODUCTION, HARVESTING, AND UTILIZATION OF BIOTECHNOLOGY-ENHANCED VARIETIES/HYBRIDS THAT ARE UNAPPROVED FOR EXPORT TO MAJOR MARKETS

1. There must be a contract between the seed company and each farmer, requiring delivery of all production from the biotechnology-derived seed, allowing on-farm midseason field inspections, requiring minimum isolation distances from other types of the crop, and other requirements inherent in certified seed production. All unused seed must be returned to the seed company for proper disposal.

2. A sufficient price premium (a minimum of $.85 per bushel harvested for soybeans) must be paid to the farmers via the contracts, to ensure delivery by the farmer and to compensate for IP costs.

3. Designated delivery points must be facilities that do not deliver any crop into export channels. Transportation costs will be paid by the farmer for deliveries within a 20 driving mile radius of his farm. Additional transportation costs will be paid by the seed company at a rate of $.30 per bushel for each 10-mile increment beyond 20-mile radius of applicable farm(s).

4. The contract growing of biotechnology-enhanced varieties/hybrids that are unapproved for export should be confined to restricted "closed loop" geographic areas, and the number of these separate geographic areas kept to as few as possible, in order to minimize the likelihood for IP system failures.

5. Varietal verification testing of each load delivered by each farmer must be performed at each delivery point, with totals by farmer matched up with the midseason field yield estimates to ensure that each farmer delivered all of the biotechnology-enhanced crops he produces in that crop year.

6. Before handling or harvesting any other varieties/hybrids of crops, each farmer must thoroughly clean-out all planters, combines, trucks, wagons, augers, storage bins, etc. that were utilized in the planting, harvesting, transport, or storage of biotechnology-enhanced crops. All contract transport carriers utilized must have same clean-out requirement. The seed/biotech company shall be responsible for the proper training of farmers on these requirements.

7. No "test plots" of unapproved for export, biotechnology-derived varieties/hybrids shall be allowed, other than the above contracted fields.

8. In any publicity about biotechnology-enhanced varieties/hybrids [e.g., invitations for farmers to view fields at a fall Field Day], seed companies must always state that these crops are being grown under tightly controlled contracts while they are awaiting overseas regulatory approvals.

9. In addition to the aforementioned requirements, the seed company shall adhere to all OECD requirements established for certified seed production.

10. An outside third party will check verification of the establishment of a closed loop system and adherence to these requirements.

11. The seed company shall assume legal and financial liability for any breaches in its closed loop identity preservation system that may result in lost international markets, or cargoes that are denied entry into foreign markets due to detection of the presence of gene(s), protein(s) or DNA identified from the unapproved, biotechnology-enhanced variety/hybrid. This includes all fines and demurrage charges incurred by U.S. exporters and foreign importers due to presence of unapproved biotechnology-enhanced crops or products.

While we strongly support development of new biotechnology-enhanced crops, the action of commingling biotechnology-enhanced varieties/hybrids that are not yet approved for export to major foreign markets with either traditional or approved biotechnology-enhanced crops, endangers U.S. commodity and product exports. Therefore, we require due diligence of biotech and seed companies involved in the commercialization of biotechnology-enhanced crops to:

1) Obtain international clearances for the importation of biotechnology-enhanced varieties/hybrids into major export markets on a timely basis, before these varieties/hybrids are commercialized in the U.S. market;

2) Institute controls necessary to ensure that the commodity and products produced from biotechnology-enhanced varieties/hybrids are kept out of export channels until international clearances are obtained; and

3) Establish the documentary evidence that may be needed to document to foreign government authorities that all the commodity and products produced from biotechnology-enhanced varieties/hybrids have been utilized in the U.S. market, until international clearances are obtained. Follow ASA established criteria or standards for evaluating control and release of new biotechnology-enhanced or specialty soybean varieties.