Brewery's boycott talk puts halt to biotech rice

Anheuser-Busch Cos. has dropped its threat to boycott Missouri's rice crop after a biotechnology firm agreed to grow its genetically engineered rice farther away from commercial rice farms in the state's Bootheel.

The agreement reached Friday ends a dispute between the beer giant, the state and California-based Ventria Biosciences, which wants to grow about 200 acres of genetically modified rice to produce human proteins used in drugs.

"I am pleased that Anheuser-Busch and Ventria have reached a fair compromise that furthers cutting-edge life-sciences technology while protecting current markets for Missouri rice farmers," Missouri Gov. Matt Blunt said in a statement.

Earlier this week, Anheuser-Busch said it was concerned the genetically modified crops could contaminate rice grown in the southeastern part of the state. Under the agreement, Ventria's rice would be planted at least 120 miles away from commercial growing areas.

It was not clear whether the agreement with Anheuser-Busch would resolve similar safety concerns raised by Arkansas-based Riceland Foods Inc., the world's largest rice miller and marketer and the largest purchaser of Missouri rice. Both companies had urged federal regulators to deny a permit for Ventria's project.

Riceland did not return repeated calls from The Associated Press.

The practice of growing engineered crops to produce drugs -- known as "biopharming" -- has angered environmental groups, the food industry and farmers, who fear modified crops could contaminate soil or food and crossbreed with other plants.

The agreement Friday was brokered by Blunt and Missouri Sen. Kit Bond. It came just hours after Rep. Jo Ann Emerson, R-Mo., sent a letter to Blunt saying she would oppose Ventria's plan because safety concerns raised by rice purchasers could jeopardize the state's ability to market its crop.

"First and foremost we must protect this industry's markets and not jeopardize our farmers' income," Emerson's letter said. She urged Blunt to take any action necessary to keep markets open to Missouri's $95 million rice crop.

Under the agreement, Ventria's rice would no longer be grown in Cape Girardeau, Scott and Mississippi counties, where much of the state's rice crop is grown. Emerson represents those counties.

"I am very proud that friends have come together in good faith and reached an agreement that addresses all concerns while permitting this critical technology to find a welcome home here in Missouri," Bond said in a statement. "I congratulate Governor Blunt, the leadership at Anheuser Busch and Ventria, and the indispensable scientific, agricultural, and civic leaders who stuck to our commitment to put life sciences to work in Missouri to improve health and economic opportunity."

Permit before USDA

Ventria's request to plant rice enhanced with synthetic human genes to produce the proteins lactoferrin and lysozyme is pending with the U.S. Department of Agriculture. The company hopes to harvest and refine the proteins for use in medicines to fight diarrhea and dehydration.

The USDA can either deny Ventria's permit or issue a permit with additional conditions.

Ventria's president, Scott Deeter, has said fears of contamination are overblown because the company intends to use "a totally closed system of production" with a plant that pollinates itself. Deeter said Friday the company is still considering where to grow the rice but has not made a decision.

He added that he hopes the agreement would address Riceland's concerns, although he said he has not talked to Riceland officials.

The Missouri Farm Bureau supports Ventria, which is moving from Sacramento, Calif., to Northwest Missouri State University to be the anchor tenant of a new center for plant-made pharmaceuticals.