ADM to offer premium to grow non-genetic soy

CHICAGO, May 5 (Reuters) - Major grain processor Archer Daniels Midland Co.
(ADM - news) said Wednesday it will pay farmers a premium price for soybeans
grown with a certain non-genetically altered variety of seed.

The soybeans, known as Synchrony Treated Soybeans (STS), are produced by
DuPont Co. (DD - news), and are bred to resist Synchrony herbicide, also
produced by DuPont.

Farmers participating in the STS program would receive an 18-cent per bushel
premium over the Decatur, Ill., market price for soybeans, Martin Andreas,
senior vice president for Decatur-based ADM, said in an interview.

Andreas said the program offers farmers a way to avoid the recent problems
revolving around genetically-modified crops, also referred to as GMO
(genetically modified organism) crops. The program took effect on April 27,
Andreas said.

``He's got a home for his product, he's got a good premium price, and he's
taken out of the political difficulties surrounding the GMO issue,'' said
Andreas. ``I think it's a pretty decent program for the farmer.''

Genetically modified crops have rapidly grown in popularity among U.S.
farmers in recent years, but have met resistance in the U.S.' major markets
overseas, such as Europe and Asia. Resistance revolves primarily around over
whether food products containing genetically modified crops are entirely
safe for human consumption.

For example, Roundup Ready soybeans, a product of Monsanto Co. (MTC - news),
are genetically modified to resist Monsanto's Roundup Ready herbicide.

The STS variety could be exported about anywhere in the world, because it is
not genetically modified, Andreas said.

According to Andreas, DuPont expects to offer contracts to plant STS on 9
million to 10 million acres this year. U.S. soybean acreage this year is
expected to total about 73 million acres. Most of the STS variety would be
grown in Illinois, with some in Iowa and Indiana, Andreas said.