Winnipeg, Manitoba
August 20,  2001

Monsanto Canada today announced details of a new structure for technology pricing in corn and soybeans.

Starting in the fall of 2001 and in time for the 2002 planting season, Monsanto will institute a seed license fee for seed companies who are interested in marketing Monsanto traits, including YieldGard(R) and Roundup Ready (R) in corn, and Roundup Ready(R) in soybeans. The change in pricing structure means farmers will make a single payment for the combined value of the technology and seed, rather than making one payment to the seed company to cover the cost of the seed and a separate payment to Monsanto for access to Monsanto's patented technology.

The new seed license system applies to corn and soybeans only. There are no plans to change the structure of technology pricing for canola at this time.

"The change in pricing structure was introduced to simplify the farmer's purchase of the brands of seed they prefer to plant," explained Jim Inksetter, director of biotechnology, Eastern Canada, with Monsanto Canada.

Elements in the current Monsanto Technology Use Agreement (TUA), including stewardship and saved seed requirements, will continue to be required and enforced.

"It's important for farmers to understand this change only applies to the pricing structure, not necessarily the price itself," clarified Inksetter. "In response to feedback from our customers, we are simplifying seed purchasing by farmers."

Inksetter added that Monsanto technology provides significant value to farmers and seed companies and he expects companies will continue to price seed with Monsanto traits based on this value.

In 2000 alone, Monsanto Company invested approximately U.S. $588 million in research and development aimed at bringing forward new and improved products for farmers. Income from Monsanto's seed licensing system will allow the company to continue to invest in new technologies, new variety and hybrid development, and genomics research. These investments will, in turn, deliver additional benefits to customers and their operations in the years to come.

"Our corn and soybean technologies continue to offer growers numerous advantages, and we remain committed to delivering technologies to growers to enhance both their farming operations productivity and profitability," said Inksetter.

Monsanto Canada, based in Winnipeg, Manitoba, is a leading provider of technology-based solutions and agricultural products that improve farm productivity.

Company news release
N3733