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Bioceres Crop Solutions (NASDAQ:BIOX) +2% post-market Tuesday after the U.S. Department of Agriculture said the type of genetically modified wheat developed by the company may be safely produced in the U.S., putting the agriculture technology company a step closer to its goal of bringing the first genetically modified wheat to the U.S.
The USDA said Bioceres’ (BIOX) drought tolerant and herbicide resistant HB4 wheat is unlikely to pose an increased plant pest threat and “may be safely grown and bred in the United States.”
The approval makes the U.S. the fourth country to receive clearance to produce and commercialize HB4 wheat, after Brazil, Paraguay and Argentina previously approved the grain, the company told Bloomberg.
Bioceres (BIOX) must still complete additional steps, including field trials, that will take years before it can commercialize HB4 wheat, industry group U.S. Wheat Associates said, but the USDA’s finding moves GM wheat closer to production in the U.S. in a potential win for farmers combating drought and severe weather.
