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A $110 million settlement for U.S. corn farmers was approved by Judge James Moran of the U.S. District Court for the Northern District of Illinois. All farmers who harvested corn grown for grain in the United States that was not grown from StarLink corn seed between 1998 and 2002 qualify for the settlement. The money has been secured and set aside for qualified farmers who apply on or before May 31.

StarLink corn was a genetically modified, bioengineered seed corn that contaminated crops across the United States. Farmers who did not grow StarLink corn are now being compensated for the disruption of corn markets that resulted from the contamination.

Farmers interested in participating in the settlement are required to file a Corn Loss Proof of Claim form. The "operator" of the farm should file the form. The "operator" is considered to be the person making the day-to-day decisions for the farm.

Proceeds of the settlement are allocated based upon the claimed number of acres of nonStarLink corn grown in the United States in 2000. Documentation is required to verify the number of acres of nonStarLink corn the farmer harvested during the 2000 growing season. If the farmer filed an FSA-578 form with the Farm Service Agency for any of the farms described in the claim form, copies of the FSA-578 form must be attached to document the number of acres claimed. If the farmer did not file a report of acreage with the Farm Service Agency, the farmer can submit copies of acreage documentation submitted to his or her insurance carrier. If the farmer did not grow corn in 2000, he or she may still participate by averaging the number of acres of nonStarLink acres harvested between 1998 and 2002, and then reducing that average by 90 percent.

It is impossible to predict how much of a settlement amount the farmer may receive. The amount will vary depending upon the amount of interest earned on the money between Sept. 24, 2002, and the date of distribution, the amount of expenses incurred in administering the settlement, and the number of acres of nonStarLink corn claimed for 2000.

The $110 million settlement will earn interest at the rate of 4 percent from Sept. 24, 2002. It is estimated that $2.2 million in interest will be earned and added to the settlement. Deducted from the gross amount will be:

• The costs and expenses of providing notice to the settlement class
• The amount that the court awards the attorneys for the farmers as attorney fees
• The amount of administrative expenses incurred, including accrued taxes
• All amounts awarded to plaintiffs as special awards by the district court.

Deducting the foregoing expenses from the gross settlement amount will determine the net settlement amount. The net settlement amount will then be allocated as follows:

• Recognized loss for an Authorized Property Damage Claimant. If a farmer has suffered lost market value as a result of cross-pollination of his corn with StarLink corn, or as a result of the co-mingling of grain with StarLink grain, the farmer is entitled to file a Property Damage Claim in addition to the Corn Loss Claim. This amount is limited to 15 cents per bushel and will be reduced by the amount of damages paid by the seed corn company directly to the farmer.

• An additional Property Damage Claim form must be filed to claim Authorized Property Damage in addition to the Corn Loss Claim.

• The remaining amount will then be divided by the number of claimed nonStarLink corn acres across the United States and distributed to the claimants.

"Even though the amount recovered may be small if the farmer files a claim form, I am certain that the farmer will not recover anything if he does not file a claim form. The only down side to filing the claim is the amount of time it takes to fill out the form and obtaining the verification of the acres of corn planted," said Larry Gearhardt, OFBF director of local affairs.

All Corn Loss Proof of Claims must be postmarked or received no later than May 31. All Property Damage Proof of Claims must be postmarked or received no later than July 31.

LEX Acquisition Group (LEX) is assisting farmers of nonStarLink corn secure money through this settlement. Because time is of the essence, LEX has streamlined the process of applying for and securing a cash settlement. By calling LEX at 800-397-5874 or by visiting the group's Web site at www.cornforms.com, farmers can get assistance in claiming the settlement money.