Monsanto and Grower Associations Announce Agreement that Supports Introduction of Future Soybean Technologies for Brazil, and Provides a Mechanism to Resolve Disputes on Roundup Ready 1

Wed Jan 23, 2013 12:38pm EST

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ST. LOUIS,  Jan. 23, 2013  /PRNewswire/ -- Monsanto Company (NYSE: MON) and
leading grower organizations in  Brazil  announced today that they have reached
an agreement that will support the introduction of next-generation products like
INTACTA RR2 PRO soybeans.

The agreement represents an important next step towards the commercial
introduction of INTACTA RR2 PRO soybeans in the country. It demonstrates strong
support by the Agriculture and Livestock Confederation of Brazil (CNA), a
leading national grower organization, as well as ten state agriculture
federations in the soybean-production regions of Brazil. The agreement
recognizes the important role of technology providers that invest in new
technologies for farmers as well as for a value collection system that ensures
technology providers are duly compensated for technology each time it is used on
farm.  

"Importantly, this agreement reflects the support of key grower associations and
provides a mechanism to allow all parties to focus on the long-term solutions
that will support the Brazilian agriculture industry and its growing demands,"
said  Rodrigo Santos,  Monsanto Brazil  president.  

Under the agreement, participating Brazilian farmers will secure a new license
that will allow them to purchase soybeans containing the new INTACTA RR2 PRO
technology, expected to be available in the 2013-2014 growing season. The
agreement also underscores the grower associations' support for continuing a
royalty collection approach, which ensures that growers pay royalties each time
they use the technology.   

The agreement also provides clarity on first-generation Roundup Ready soybeans
for participating farmers.  Those farmers will be released from payment of
technology royalty fees for first-generation Roundup Ready soybeans for this and
next season, while waiving all potential legal claims for payments previously
made for this first-generation technology.  Farmers who elect to not participate
will continue to pay royalties on that technology through the term of Monsanto's
intellectual property rights in  Brazil  that cover the first-generation Roundup
Ready soybeans.   

Monsanto had previously excluded the contribution related to the company's
first-generation Roundup Ready soybean business in  Brazil  from its earnings
per share (EPS) and free cash flow guidance, reflecting an estimated historical
annual range of  $0.20 to $0.25.  

Monsanto and the leaders of these grower groups recognize that innovation in
agriculture is one of the critical paths towards delivering value to Brazil's
farmers and its economy and meeting the demands of our growing planet.  The
parties also agree and recognize the value that intellectual property rights and
the associated royalties can play in stimulating new investments made by the
agriculture industry.  

About Monsanto Company  

Monsanto Company is a leading global provider of technology-based solutions and
agricultural products that improve farm productivity and food quality. Monsanto
remains focused on enabling both small-holder and large-scale farmers to produce
more from their land while conserving more of our world's natural resources such
as water and energy. To learn more about our business and our commitments,
please visit:  www.monsanto.com.  Follow our business on Twitter®  at 
www.twitter.com/MonsantoCo, on the company blog, Beyond the Rows at 
www.monsantoblog.com, or subscribe to our  News Release RSS Feed.

Cautionary Statements Regarding Forward-Looking Information:

Certain statements contained in this release are "forward-looking statements,"
such as statements concerning the company's anticipated financial results,
current and future product performance, regulatory approvals, business and
financial plans and other non-historical facts. These statements are based on
current expectations and currently available information. However, since these
statements are based on factors that involve risks and uncertainties, the
company's actual performance and results may differ materially from those
described or implied by such forward-looking statements. Factors that could
cause or contribute to such differences include, among others: continued
competition in seeds, traits and agricultural chemicals; the company's exposure
to various contingencies, including those related to intellectual property
protection, regulatory compliance and the speed with which approvals are
received, and public acceptance of biotechnology products; the success of the
company's research and development activities; the outcomes of major lawsuits
and the previously-announced SEC investigation; developments related to foreign
currencies and economies; successful operation of recent acquisitions;
fluctuations in commodity prices; compliance with regulations affecting our
manufacturing; the accuracy of the company's estimates related to distribution
inventory levels; the company's ability to fund its short-term financing needs
and to obtain payment for the products that it sells; the effect of weather
conditions, natural disasters and accidents on the agriculture business or the
company's facilities; and other risks and factors detailed in the company's most
recent Form 10-K Report to the SEC. Undue reliance should not be placed on these
forward-looking statements, which are current only as of the date of this
release. The company disclaims any current intention or obligation to update any
forward-looking statements or any of the factors that may affect actual results.
 

Contact:
Kelli Powers  (314) 694-4003 
Lee Quarles  (314) 694-2330



SOURCE  Monsanto Company

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