US Ban On Clearfield 131 Rice Seed To Have Impact On 07 Crop

The absence of Clearfield CL131 long grain rice seed following the U.S. Department of Agriculture decision to put a "hold" order on the seed will have a profound impact on near-term demand and 2007 rice acreage, industry participants said Tuesday.

The inability to use the seeds could produce some significant reductions in acreage, particularly in the U.S. Delta, and it's going to hurt the marketing of old crop stocks planted with Clearfield CL131 seeds, said J.P. Gains, editor of a weekly rice newsletter.

Clearfield CL131 is a traditional type of rice produced by BASF Corp. (BF), but the seed may have unapproved genetically modified material. The USDA said late Monday its hold order is to keep the seed from being distributed or planted while it conducts tests this week.