--Provisions in U.S. House version of agriculture bill would streamline review of biotech crops

--Environmental groups, National Grain and Feed Association object to provisions

--Seed industry group says provisions will reduce spurious lawsuits

(Updates with comments from biotechnology trade group, detail)

   By Ian Berry 
 

Provisions in a pending U.S. House farm bill that would accelerate the review process for genetically modified crops are raising objections from environmental groups and a major grain industry organization.

The provisions would lead to new crops being approved before they have been fully assessed, the Center for Food Safety, an advocacy group in Washington, said in a letter Tuesday co-signed by other environmental and consumer safety groups, including the Sierra Club.

The legislation would block the U.S. Department of Agriculture from using certain federal laws, such as the National Environmental Policy Act, as a basis for rejecting a proposed seed variety.

The proposal also would impose a one-year deadline for the USDA to assess new biotech seeds, after which they would be automatically approved, although the agency would have the option to extend that period by 180 days.

Seed companies have argued that opponents of genetically modified seeds have been needlessly delaying new crops with legal challenges, which threatens to discourage additional investment in the sector. The provisions are designed to reduce "spurious lawsuits," said Cathleen Enright, executive vice president at the Biotechnology Industry Organization, a trade group that represents seed companies such as DuPont Co. (DD) and Monsanto Co. (MON).

The revisions would also eliminate "inefficiencies and duplication within the regulatory structure," the trade group said in a letter to ranking members of the U.S. House Agriculture Committee. Ms. Enright said it would leave in place a thorough review process.

"We are in no way trying to short-circuit the rigor of that review," Ms. Enright said in an interview.

The environmental and consumer groups argue in their own letter to ranking members of the U.S. House Agriculture Committee that the new rules would "make a mockery" of the USDA's crop reviews. The committee is set to finalize the bill Wednesday, and could vote on it this week.

"They've been losing in court, and they're trying to change the rules," George Kimbrell, senior attorney at the Center for Food Safety, said in an interview.

The National Grain and Feed Association, which represents grain elevators and some of the country's largest grain merchandisers, such as Archer Daniels Midland Co. (ADM) and Cargill Inc., said in a statement Monday that the provisions fail "to encompass the concerns of grain handlers, grain millers and processors, and the food industry over appropriate stewardship practices and other concerns related to premature commercialization of biotech traits."

The NGFA is working with other groups, including the Grocery Manufacturers Association, which includes food companies such as Kellogg Co. (K) and PepsiCo Inc. (PEP), to address these concerns, according to the statement. NGFA officials couldn't be reached for comment Tuesday.

Grain exporters and food manufacturers are sensitive to biotech-seed policies because some countries, such as China and South Korea, are slow to accept crops with genetically modified traits that have already been approved in the U.S.

The gap between U.S. farmer adoption of genetically modified traits and foreign approval of those traits for import can cause problems for farmers and seed companies. Last year, some farmers who planted a new corn seed from Switzerland-based Syngenta AG (SYT, SYNN.VX) had to scramble for buyers after grain elevators said they wouldn't accept the corn because China hadn't agreed to import it.

Mr. Kimbrell said one of the new farm bill provisions would require the USDA to establish for the first time standards to allow a certain low level of genetically modified material in crops deemed not genetically modified.

He added that opponents of genetically modified crops have successfully appealed USDA decisions based on violations of laws, including the Endangered Species Act, that would no longer apply to the review process. But Ms. Enright said legal victories for opponents have been based on "procedural omissions" rather than any findings of environmental harm.

Opponents of genetically modified crops argue that they cause environmental problems by increasing herbicide use and fostering pests that are resistant to the traits, and have unknown health effects. Proponents of the technology say they help reduce soil erosion and ensure better yields, boosting global food security.

Roughly 90% of the U.S. corn and soybean crops now include genetically modified traits.

Write to Ian Berry at ian.berry@dowjones.com

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