EPA Seeks to Revoke Approval of Dow Chemical's Enlist Duo Herbicide -- 4th Update
November 25 2015 - 7:03PM
Dow Jones News
By Jesse Newman
The Environmental Protection Agency plans to withdraw its
approval of a Dow Chemical Co. herbicide, saying it has new
information that suggests the weedkiller is more toxic to
surrounding plants than previously thought.
In a setback for one of Dow's newest agricultural products, the
EPA this week asked the Ninth U.S. Circuit Court of Appeals to
vacate the agency's approval last year of Dow's Enlist Duo
herbicide, which is designed to be used on genetically engineered
crops, so that it may reevaluate the spray.
Dow Chemical shares closed 2.7% lower at $51.92 on
Wednesday.
The EPA in October 2014 greenlighted the use of Enlist Duo in
six states, offering farmers a new tool to combat "super" weeds
that have taken a heavy toll in the Farm Belt. It expanded that
approval to nine more states earlier this year.
Several environmental-advocacy groups including the Center for
Food Safety and Earthjustice sued the agency last year, arguing it
had failed to adequately consider the pesticide's effects on
threatened and endangered plants and animals.
The EPA this week said new information, which Dow hadn't
provided to the agency before Enlist Duo's approval, could lead it
to a "different decision" about restrictions for farmers' use of
the herbicide. Specifically, the agency said farmers may be
required to follow more-stringent measures to protect nearby
plants, including those listed as endangered.
Dow spokesman Garry Hamlin said the Midland, Mich., company is
confident in the data supporting Enlist Duo.
"We are working with EPA to quickly provide further assurances
that our product's conditions of registered use will continue to
protect the environment, including threatened and endangered plant
species," he said. "We expect that these new evaluations will
result in a prompt resolution of all outstanding issues."
In a press release late Wednesday, Dow said the company expects
its Enlist Duo herbicide to be available for the upcoming 2016 U.S.
growing season, and continues to prepare for commercial sales of
the spray.
Supporters of the herbicide argued that it was badly needed by
farmers who have been combating fast-growing weeds that have
developed defenses against glyphosate, a widely used weedkiller
sold by Monsanto Co. as Roundup. Enlist Duo combines glyphosate and
a new version of 2,4-D, a decades-old chemical, that Dow says is
safer for farmers and neighboring crops than older versions.
Dow now has an opportunity to respond to EPA's motion. The
appellate court then will decide whether to vacate Enlist's
approval.
"With this action, EPA confirms the toxic nature of this lethal
cocktail of chemicals, and has stepped back from the brink," said
Earthjustice attorney Paul Achitoff.
Opponents of the herbicide, including environmental groups, have
argued that ongoing reliance on chemicals increases the risk that
weeds such as palmer amaranth and marestail will develop further
herbicide resistance and plague more farms.
The EPA's move may be a temporary setback for the chemical
company, said Bernstein analyst Jonas Oxgaard. He said the agency
likely will move quickly to review the new information and
determine appropriate restrictions over use of the herbicide.
"It's basically a speed bump on the ramp more than anything
else," he said.
Still, he noted that EPA's actions may impact the company's
prospects for growth at a time when Dow is exploring the sale of
its seed and pesticide unit.
"Enlist is their crown jewel," he said.
Write to Jesse Newman at jesse.newman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 25, 2015 18:48 ET (23:48 GMT)
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