[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]
[SANET-MG] EU approves compensation from losses when crops experience gm pollution
I wonder why US and Canada have not been willing to consider such
compensation? Instead the governments aid corporations in going after
farmers who have been polluted by their gm crops.
Brussels, 23 November 2005
Commission authorises Danish state aid to compensate for losses due to
presence of GMOs in conventional and organic crops
Reference: IP/05/1458 Date: 23/11/2005
Commission authorises Danish state aid to compensate for losses due to
presence of GMOs in conventional and organic crops
The European Commission has today authorised Denmark to pay compensation
in cases where farmers with conventional or organic production suffer
economic losses when genetically modified (GM) material is found in
their crops. This is the first case where the Commission has authorised
such state aid. The compensation will be granted only if the presence of
GM material exceeds 0.9 % and is limited to the price difference between
the market price of a crop that has to be labelled as containing GM
material and a crop for which no such labelling is required. The
compensation is entirely financed by obligatory contributions from
farmers who cultivate genetically modified organisms (GMOs).
The admixture of conventional crops with GM material may cause economic
losses to the farmer with conventional crops if his products have to be
labelled as containing GM material and he gets a lower price for them.
This is in particular the case with products from organic farming. At
this point no insurance products against this risk exist in the European
Union.
The Danish compensation scheme institutes a compensation fund, wholly
financed by the producers of GM crops with an annual parafiscal tax of
DKR 100 (€ 13.4) per hectare of land cultivated with such crops, to
cover the economic losses due to admixture with GM material. The scheme
is administered by the Danish authorities.
Compensation may be paid only to farmers and if the amount of GM
material exceeds 0.9 % of the conventional or organic crop, which means
that the product has to be labelled as containing GMOs, as provided by
EU law (Regulation (EC) No 1829/2003 on genetically modified food and
feed). The amount of compensation is limited the price difference (based
on official market prices) between the GM crop and conventional or
organic crops.
The payment of compensation does not free the GM farmer from any civil
or criminal liability under Danish law. The Danish authorities will in
all cases take action to recover the compensation paid from the farmer
from whose fields the GM material has spread.
The compensation fund will be replaced by private insurance as soon as
such is available. The duration of the compensation scheme is limited to
5 years.
The Commission finds that such aid contributes to a successful
co-existence of GM crops with conventional and organic crops, not the
least because it is wholly financed by the Danish farmers with GM crops
and ends when insurance products covering the risk of admixture become
available on the Community market. Such aid appears to improve the
structures of agricultural production in a way that is compatible with
Community policy concerning such co-existence.
Therefore the Commission has approved the aid on the basis of EU state
aid rules (Article 87(3)(c) of the EC Treaty).
The text of the decisions will shortly be made available on the Internet
at
http://europa.eu.int/comm/secretariat_general/sgb/droit_com/index_en.htm#aides
under the aid number N 568/2004.
********************************************************
To unsubscribe from SANET-MG:
1- Visit http://lists.sare.org/archives/sanet-mg.html to unsubscribe or;
2- Send a message to <listserv@sare.org> from the address subscribed to the list. Type "unsubscribe sanet-mg" in the body of the message.
Visit the SANET-MG archives at: http://lists.sare.org/archives/sanet-mg.html.
Questions? Visit http://www.sare.org/about/sanetFAQ.htm.
For more information on grants and other resources available through the SARE program, please visit http://www.sare.org.