RON WOOLLEN: Mr. Schroeder, Mr. Murphy, my name is Ron Woollen, and I'm President of the Nebraska Corn Growers Association. I farm 35 miles southwest of Kearney near Wilcox, Nebraska. And I want to thank you for coming out to Nebraska to hear firsthand from our producers how the decisions you make and the trade agreements that you are involved with affect producers on the farm.

There's one major issue affecting virtually every corn producer in Nebraska today. I am referring to genetically modified organisms or GMO's. Corn producers have looked into growing GMO corn for a variety of reasons. We have been assured that they are safe, that they allow the use of herbicides that are more friendly to the environment. And in the case of BT corn, have eliminated the need for insecticide entirely. We also were assured that they would be approved for both domestic and foreign markets in a timely manner.

In this time of depressed prices, corn growers have welcomed the opportunity to increase yield, spend less money on pesticides and help to preserve the environment. However, what we thought was opportunity has turned out to be something all together different. I'm not sure where the blame should be placed for this issue. Whether the seed companies prematurely released GMO varieties, whether it's the politics of the issue, whether it's the European Union and their consumers or if it's the scientific community. But I do know that our farmers have literally been left holding the bag.

As we began to plant corn and soybeans this spring, we had bags of seed that we were not sure we should open and plant. Not only has this jeopardized our export markets, but it is now causing concern with domestic markets as well. Several U.S. corn processors have said they will not accept GMO corn at all while others will not accept any GMO product not approved by the European Union. The EU has approved several GMO traits but to my knowledge have not approved any corn with stacked traits. A farmer may have full confidence that he was planting a fully approved variety, but because that variety contains more than one trait, it more than likely is not approved. You can see the confusion and the frustration that this causes to our producers.

We have been constantly telling our corn grower members that farming in the global economy will require sound marketing plan. One that is flexible while remaining disciplined. The GMO issue can disrupt even the best marketing plan, and it can cause already financially strapped farmers to fail. Our infrastructure makes it very difficult to separate GMO corn from non-GMO and virtually impossible to separate it by individual genetic traits.

I call on the United States Trade Representative and the administration to do everything in their power to resolve this issue as quickly as possible in a manner that is favorable to our producers. If the science is sound, I would expect nothing less. I see a favorable result on this issue along with the beef hormone issue as being essential to maintaining confidence in the WTO. Anything less could jeopardize the integrity of all of our trade agreements.

Thank you for allowing me this time and thanks again for coming to Nebraska.

JAMES MURPHY: Very interesting presentation. Just one comment. Your stacked gene point. It is correct it's not approved the stacked gene varieties. Not in our view because they have a particular problem with stacked genes. They've only just had the application for stacked genes somewhat recently. Also not to say they don't take too long to approve all the ones that they do, but they have not rejected any stacked gene applications simply because they're stacked. We're, of course, involved in the long debate about whether to reprocess in the same fashion the stacked genes for which they should be separately approved is not required, but they're taking the position it should be there. We're fighting about that.

In terms of your calling on us for results as quickly as possible, let me assure you that we are working fully to do that. And a question in that regard, as you know the Europeans have in place a mandatory labeling law for GMO's, a law which they've never put out regulations for what is the testing methodology that is acceptable, what is the negative list. What is your view on the whole question of labeling which is currently one that is highly debated in different quarters? Some U.S. industries oppose, some say, no, we should have a look at it and try to meet the European demand for labeling. Do you have a position on that question?

RON WOOLLEN: Relative to GMO products labeling, it depends on what's on the label. A label that says may contain a modified product is certainly detrimental, in that sense you can't sell them anything. So I guess in my view right now, it certainly could work to our disadvantage. But there again, it just depends if the label means something. If it actually has meaning and has value, then it may not be such a bad idea.

Certainly -- and I've heard you discuss this morning, you know, about how do we handle that situation over there. And I know that I rely on my government agencies for the safety of what I consume. And I have confidence in them, and they generally get it right. And if that is the problem with EU, if they have a lack of confidence in what they're being told or if their approval process is just not satisfactory, you know, I'm not sure. Or are the people in charge even trying to convince the consumer that these products are safe. So at some point, the consumer has to have confidence in somebody telling them something that is based on true science.

JAMES SCHROEDER: Just a quick comment on EU, so everybody knows the problem. And, Mr. Murphy, we're all having European community union, there are 24 directors that have been set up in Brussels.

Number two, all the commissioners were fired or resigned this spring. There were claims of fraud and abuse. So all the commissioners were essentially fired or resigned, and many of them are serving now sort of in a transition capacity, carry over, if you will.

Number three, we still have all these sovereign states in Europe. If you remember your history, when we started our system, we had the confederation, and that's what they've got over there. They still don't have a federal system. So you still have France and Spain with very sovereign powers and ministers. So what we're dealing with a morass and quagmire process and procedure. If we could ever get a good process, a reliable procedure the Europeans will use and abide by, then we think there's a lot more hope for approvals and solving this mess that we're in on GMO's.