Sygenta to pay US$1.51B to America corn farmers
In what could be the biggest nationwide class action, agribusiness giant Syngenta AG has agreed to pay a record $1.51 billion settlement to U.S. corn farmers, grain handling facilities, and ethanol plants over the introduction of a genetically engineered corn variety that has yet to be approved in major markets in the world.
The lawsuit stemmed from the decision of Syngenta to introdude a new corn seed to American farmers during the 2011 growing season, but was only approved by China’s importers in 2014. This resulted very limited access to Chinese corn markets, resulting to drop in prices of the commodity over the three year period.
Under the settlement deal, which is still subject to the approval of feredal court in Kansas, farmers will be paid by first half of the 2019 thru a fund manager.
The settlement, which covers corn priced after September 15, 2013, still does not include the amount to be paid to major exporters such as Cargill and ADM, which also sued Syngenta.