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 26-05-2008 

Seeds Of Conflict - Potential problems with genetically modified crops

Both farmers growing genetically modified and standard crops may find themselves facing legal action if GM crops contaminate neighbouring farmers' fields.

Genetically modified crops have had their DNA altered by genetic engineering. This is usually done to promote higher yields, faster growth times or better resistance to drought or disease.

The moratorium on the commercial planting of GM crops in NSW and Victoria has now lapsed, giving rise to a number of potential legal issues for farmers. The commercial planting of GM canola may be the first of many GM crops to come.

The need to consider liability issues arises because of concern in some quarters that GM crops may cause environmental damage through a loss of biodiversity, personal injury (through allergic reactions) and economic loss to GM-free farmers whose crops become contaminated with the GM product.

It is foreseeable that should such contamination occur, and farmers seek to take action, they may do so not only against the specific farm responsible (if it can be proved), but, potentially, against the manufacturer or distributor of the seed, or the harvesters who move from farm to farm with their equipment and who may be the source of contamination.

On the flip side, there is the issue that GM-free farmers might inadvertently grow GM crops from the spread of seed from nearby GM crops, and then be open to liability to the patent owner of the GM crop, as a Canadian farmer recently found.

Ironically, although the courts held in that case that the farmer had infringed the company's patent, and that the company was entitled to an account of profits, it didn't receive it, as it could not demonstrate that the GM crop had increased profits for the farmer.

A number of insurance issues may arise. If a GM farm contaminates another property, would the farmer's public liability policy cover this, or some other cover? And, if so, under what conditions?

This would depend on the wording of each farmer's policy, which should be considered by farmers and their advisors.

It is unclear whether an unaffected farmer would have a valid claim under a business interruption policy if no longer able to sell a GM-free crop to its intended market. It is also unclear whether a harvester's policy would cover it for such damage to a client's farm if it inadvertently transported GM seed to a GM-free farm.


© 2008 Clark McNamara Lawyers