StarLink corn settlement also to include interest
KEVIN O'HANLON
Associated Press Aug. 23, 2004

LINCOLN, Neb. - Farmers nationwide will be paid interest on the $110 million settlement with makers and distributors of genetically altered corn that was mistakenly introduced into the food supply.
Attorney General Jon Bruning's office helped clarify that the settlement included 4 percent interest after farmers expressed concern about delays in getting their money. The interest began accruing on Sept. 24, 2002, Bruning said.
Payments from the settlement could begin soon after a court hearing on Sept. 2, Bruning said.
The settlement could mean up to $2 per acre for farmers who did not grow StarLink corn but suffered from a consumer backlash when it was revealed that it had gotten into the food supply.
The StarLink corn was engineered with a bacterium's gene that's deadly to the corn borer pest.
StarLink seed had been approved in 1998 by the Environmental Protection Agency for use in animal feed. But it had not been approved for human consumption because of unresolved questions about whether a protein it contains can cause allergic reactions.
Some Starlink was mixed with other varieties of corn in 1999 and 2000.
Some was mistakenly mixed with corn intended for food or export, forcing several food companies to recall products and causing a worldwide drop in corn prices.
Several farmers sued StarLink creator Aventis SA, Starlink maker StarLink Logistics Inc. and Avanta USA, which owns StarLink distributor Garst Seed Co.
The lawsuit was elevated to class-action status, which means every farmer who did not grow StarLink was eligible for a share of the settlement - an estimated $70 million after expenses are paid.
In 2001, Aventis agreed to compensate farmers and grain elevators across the country.
That agreement, between Aventis, Nebraska and 16 other states, called for the company to pay up to 25 cents per bushel for tainted corn and also covered other losses.
It covered farmers who grew StarLink corn, had fields adjacent to StarLink corn fields or had StarLink corn commingled with theirs at grain elevators.
Some $130 million has been paid so far.
A third settlement called for $9 million to be paid to consumers who said they suffered allergic reactions from eating food products that contained the genetically modified corn.