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Monsanto's Caribbean experiment
Eliván Martínez   
The Center for Investigative Journalism, 21 November 2011
http://cpipr.org/inicio/index.php?option=com_content&view=article&id=271

*The largest producer of transgenic seeds in the world is leasing some of the
best agricultural lands on the Island [of Puerto Rico] with a pattern of
questionable legality, while receiving incentives from the Fortuño
administration.

When environmentalist Juan Rosario traveled to an Amish religious community in
Iowa, to learn to make compost, he was surprised that they had a laboratory and
the services of an expert in chemistry. What was a scientist doing in a place
where people live far from technology and practice ecological farming with the
simplest of methods?

An Amish dressed in their style, with a wide-brimmed black hat, white shirt, and
black pants and black jacket, pointed toward a large cornfield on a nearby farm.
"The scientist helps us verify that pollen from genetically modified corn does
not contaminate our crops," he told Juan Rosario. "It's the same corn that you
develop in Salinas." [Salinas is a small municipality in the southern part of
Puerto Rico]

Puerto Rico, laboratory for corn, sorghum, cotton and transgenic soybeans

The island is hosting a reality that the government hides and sponsors: the
island is an important center for eight companies, seven of them multinationals,
that are developing the first generation of genetically modified seeds for
distribution to the United States and around the world. The strongholds of these
corporations extend into public and private farms, especially in the best
farmland along the island's southern coast, which in the last century was under
the rule of His Majesty's sugarcane, exalted by large landowners that sought to
take over the land.

Most of these seed developers occupy more than the 500-acre limit that the
Constitution of Puerto Rico allows, while receiving hefty government benefits
and advantages under the Law to Promote and Develop Agricultural Biotechnology
Companies of 2009, tailored to favor them.

Among them is the world's main transgenic seed developer, Monsanto, which leases
about 1,500 acres of land between Juana Díaz, Santa Isabel, Isabela and
Aguadilla. Of these acres, 500 are public property administered by the Land
Authority, and the rest belongs mostly to the Succession Serrallés in several
southern towns, confirmed Juan Santiago, the company's chief operating officer
in Puerto Rico.

But having more than 500 acres is an apparent violation to the provisions of the
Constitution of Puerto Rico, which prevents an agricultural corporation to own
more than 500 acres. The purpose of Section 14 of Article VI was to prevent
American landlords to come implement a monopoly and squeeze out the smaller
local farmer.

New settlers

Are we facing a new colonization of agriculture? Is it the beginning of a new
monopoly? "While Monsanto is leasing those lands, and although many of these
lands are private, I believe they may be violating the Constitution because its
intention was to prevent a single corporation from having control of more than
500 acres to dominate agriculture," says professor Carlos Ramos, specialist in
the field and professor at the at Interamerican University Law School. "If this
law no longer makes sense, let's open the debate. The intent of the law is as
valid today as in the 1900's. The Justice Secretary is required to enforce the
Constitution and must act."

The events of the agricultural history are repeating themselves. As was the case
with some sugar corporations over the past century, one of these companies,
Monsanto, changes names to access more land than allowed by law, said a source
at the Center for Investigative Journalism. So this media outlet went to the
corporation registry at State Department to confirm this. Carlos Morales
Figueroa, who was the vice president of the company at that time, incorporated
Monsanto Caribe LLC in 2004 . Two years later, he incorporated Monsanto AG
Products LLC.
What is this scheme about? "It was done to be able to lease more land ... They
are both Monsanto. The two entities belong to the parent company," admitted
Carlos Morales's successor, Juan Santiago. "I'd have to check the data, but
Monsanto AG has not yet been a lease contract." However, a source told this
media outlet that the other corporation also rents land in Juana Díaz.

Puerto Rico's Constitution also prohibits any member of an agricultural
corporation to have an interest in a corporation of that nature. "That scheme,
to create another company under another name makes the situation more dramatic.
Now we have to see if the government takes a blind eye to the situation because
they believe these people are creating jobs," said Carlos Ramos.

The government itself is putting the best land on a silver platter for the seed
producers. A source at the Center for Investigative Journalism said that the
Land Authority offers is offering them some 2,518 cuerdas (2,445 acres), about
8% of all publicly owned land in the south of the island. All of them occupy a
combined 6,000 acres of public and private land all around the island, according
to Juan Carlos Justiniano, who represents the seed producers as chairman of the
Association of Agricultural Biotechnology Industry of Puerto Rico.


Experiment "on demand"
Paradoxically, while much of the rest of agriculture is dying, last year Puerto
Rico was the fifth most important transgenic research center in the U.S., after
Iowa, Illinois, Hawaii and Nebraska, the U.S. Department of Agriculture told the
Center for Investigative Journalism.

The business focuses on developing seeds custom-ordered mostly by U.S. farmers.
The seed producers genetically modify corn, sorghum, cotton and soybeans, and
add genes from other organisms, to make them resistant to pests, extreme weather
changes or to have more nutritional value and resist herbicides.

Among these corporations is U.S.-based AgReliant Genetics LLC (based in Santa
Isabel), Germany's Bayer CropScience LP (in Sabana Grande), U.S. company Dow
Agrosciences LLC (in Santa Isabel), U.S. company Illinois Crop Improvement
Association Inc. (in Juana Díaz), U.S.-based and the world's second largest
genetically modified seed producer Pioneer Hi-Bred (in Salinas, Santa Isabel,
Guayama and Juana Díaz), Switzerland's Syngenta AG (in Juana Díaz and Salinas)
and the U.S.'s Rice Tec Inc. (in Lajas). The group is joined Puerto Rico's 3rd
Millennium Genetics Inc. (in Santa Isabel). Among all of them they produced
around $70 million last year, according to Juan Carlos Justiniano, also owner of
3rd Millennium Genetics Inc.

Despite the profits they get on the island, and from the multi-million business
they have around the world, the Puerto Rico government gives them the same tax
breaks that a bonafide local farmers get. In addition, they are reimbursed $2.72
for each hour in wages paid to field workers. That said, the Government of
Puerto Rico paid Monsanto, in the April, May and June quarter alone, a total of
$121,040, according to a source close to the Department of Agriculture. The
subsidy from public funds this year granted to that company could reach nearly
half a million dollars.

"I am not opposed in principle to experiments done with transgenics," said an
agronomist close to the seed business. "What bothers me is that they are
subsidized to produce a product that is not for here, that does not contribute
to the local agricultural economy and does not support better wages for farmers
who are experiencing a difficult situation, such as coffee farmers."

That's the way things are while Monsanto reinforces its presence in Puerto Rico.
Economic Development and Commerce Secretary, José Pérez Riera revealed the news
during the most important biotechnology development convention in the world, Bio
2011, last June in Washington DC. There he said Monsanto is investing $4.3
million to establish a 20,000 square foot laboratory in Juana Díaz, in order to
develop more genetically modified corn and cotton seeds, which will create 45
new jobs.
"Monsanto's project is precisely the type of investment that the Government of
Puerto Rico has fostered. This Monsanto investment serves to consolidate our
position as an optimal destination for the bioscience industry, while advancing
our mission to promote an innovation economy," said Pérez-Riera, in a press
release. This announcement is in addition to a $6 million investment by Pioneer
Hi-Bred to establish an agricultural biotechnology research laboratory in
Salinas. And last May, AgReliant Genetics LLC in Santa Isabel opened a
development center for hybrid corn at a cost of $800,000.

What are the novel incentives that the government gives? Was it the government
who invested the $4.3 million for Monsanto's lab? Why subsidize the salaries of
the employees of these multimillion-dollar companies? How about the allegedly
illegal schemes Monsanto has been carrying out to access more land? The Center
for Investigative Journalism has been trying to get an interview with
Pérez-Riera since Oct. 21 to raise these issues, with no answer. On Thursday
Nov. 3, the CPI (as the Center is known for its initials in Spanish) intercepted
Pérez-Riera at the State Election Commission, and he said he would grant the
interview. The request was forwarded by email to Susana González, the government
representative's public relations staffer, who was with him when the CPI
approached chim, but she has not responded either. Agriculture Secretary Javier
Rivera Aquino, has also refused to grant an interview.


Tailor-made legislation?
Transgenic seed companies operate freely and the government protects them. The
whole structure to continue making Puerto Rico a transgenic paradise is based on
Law 62 of 2009, better known as the Business Promotion and Development of
Agricultural Biotechnology Law, driven by Luis Fortuño. It establishes "cutting
edge" public policy for Puerto Rico to become a mecca for these companies,
giving them fast-track permits, facilitating the acquisition of buildings and
providing financial incentives through the Puerto Rico Industrial Development
Company and the Department of Agriculture.

During the public hearings to create the law, only companies and government
agencies with interests in the industry testified, according to information from
the legislative process in the House of Representatives. The law orders the
Puerto Rico Industrial Development Company and the Department of Agriculture to
advise these corporations regarding permitting and assist them in establishing
or expanding in a maximum period of one year. Otherwise, they must compensate
them for the costs invested. The Secretary of Agriculture can change the law "to
ease the regulations and administrative provisions necessary to make the
efficient operation of these enterprises possible, safeguarding the best
interests of local agriculture and the people of Puerto Rico, in general."

That means that the law is written to suit the seed companies that are illegally
accessing much of the island's best farmlands. "If on one hand you allow them to
perform mass production and on the other you allow the law to be amended to meet
their needs - claimed Law Professor and Director of the Interamerican
University's Environmental Law Program, Jessica Rodríguez Martin - you are
putting in their hands the power to manipulate our legal system to their
liking."
The Genetic Engineering Blog is produced by Thomas Wittman and EcoFarm, and supported by a generous donation from the Newman's Own Foundation.

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