U.S. states seek laws to limit new biotech wheat

By Carey Gillam

KANSAS CITY, Mo., Feb. 8 (Reuters) - Top U.S. spring wheat states are
considering legislation restricting genetically modified wheat
production in order to protect farmers from losing export business to
countries opposed to buying bioengineered food.

The proposed new laws, which were being debated this week in North
Dakota and Montana, include calls for setting moratoriums on the
planting of genetically modified (GM) wheat.

``These bills are surfacing in North Dakota because of a genuine,
sincere concern for the market,'' said Terry Wanzek, chairman of North
Dakota's Senate Agriculture Committee. ``Our major wheat customers say
they won't accept any wheat that has genetically enhanced
characteristics, and we're listening to our customers.''

Controversy over the safety of GM foods is rampant around the globe,
particularly in Europe and Japan, two of the top markets for U.S. spring
wheat, and the U.S. wheat industry is under pressure from foreign
customers not to support
GM wheat.

Fears of biotech food problems were inflamed late last year when
food-grade corn was contaminated with biotech ``StarLink'' corn that is
not approved for food use. Efforts to segregate the GM corn from non-GM
corn failed, resulting in product recalls and angry importers.

The first GM wheat expected to hit the market is a spring wheat variety
engineered to be resistant to herbicide. North Dakota is the top U.S.
spring wheat growing state, producing 55 percent of the U.S. crop.

But St. Louis-based Monsanto Co. (NYSE:MON - news), the agricultural
biotech giant that has developed the world's first GM wheat product,
said Thursday th Da???aws aimed at GM wheat are not necessary.

``We appreciate that there are a lot of concerns and questions and
discussion that has to be had around biotechnology, but the benefits are
also clear,'' said Monsanto spokesman Mark Buckingham. "Going forward
the benefits w???me between 2003-2005, and will work with the wheat
industry in the interim to build mar Je???surances by Monsanto,
lawmakers in North Dakota on Thursday were scheduled to take up in
committee a proposed new law seeking a moratorium on the introduction of
GM wheat s Ka???ird bill calls for a system that would provide
third-party certification of segregation that growers could use to
market their wheat as non-GM if desired.

In Montana, another top spring wheat growing state, lawmakers are
considering a two-year moratorium on GM wheat, as well as commissioning
a study on the benefits and problems that might stem from biotech wheat.
Hearings earlier this week in the Montana legislature drew outspoken
protestors and proponents of GM wheat.

Monsanto has said it will not roll out the GM wheat until it gains
regulatory approvals in the U.S. and in Japan for food use. But
questions remain about reaction in Europe to the new product, and that
has industry watchers keeping a keen eye on developments.

``We want the European Union also,'' said North Dakota Wheat Commission
Chairman Alan Lee.

``We've told Monsanto that. Europe is a big spring wheat market for us.
You can't afford to lose a bushel of export to
anybody,'' Lee added.

Lee said 2005 was a ``possibility,'' for release of GM wheat, but he
feared acceptance would not be in place much earlier.

``The industry has been put on guard by the StarLink situation,'' said
Wanzek. ``We've invested a lot of money over the
years in trying to market our wheat. We don't want to lose our
customers.''