* Monsanto agrees to lower price if lawsuit dropped
* Farmers encouraged to buy Monsanto's seeds
* Monsanto's Intacta seeds to be planted in 8 pct of Brazil
SAO PAULO, Aug 9 Brazil's largest soybean
cooperative, Aprosoja, has decided to drop a lawsuit against
U.S.-based Monsanto and is encouraging farmers to sign
agreements with the seed giant, the group's lawyer said on
Aprosoja decided after a long assembly in top soy producing
state Mato Grosso late on Thursday that members should accept
Monsanto's offer to reduce the price on its new Intacta RR2 pro
soybeans in exchange for dropping a case against the company
over its old seed technology, Roundup Ready.
"Yesterday, the agreement was accepted by the producers;
next week the judicial action will be retired," Ricardo Tomczyk,
a lawyer who represents Aprosoja, told Reuters.
Another entity, Mato Grosso state's farm and ranch
federation Famato, had already decided to support the agreement.
Tomczyk said individual farmers could still sue Monsanto for
royalties, but they will no longer have the backing of the
country's two powerful farm groups.
Monsanto's genetically modified technology is present in 85
percent of Brazil's soy fields and helped the country become an
agricultural powerhouse over the past decade. Brazil is
virtually tied with the United States in soybean production.
The company is also fighting off legal battles with farmers
over its business practices in the United States.
Monsanto offered on July 24 to give Brazilian farmers a
discount on Intacta seeds of 18.5 reais ($8.15) per hectare, or
16 percent off the 115 reais per hectare price if they signed an
agreement promising not to sue Monsanto for royalties paid in
Producers harvest nearly three tonnes of soybeans per
hectare on average in Brazil. Monsanto says Intacta, which is
resistant to worms, will save farmers money on chemical sprays.
The lawsuits in Brazil started because farmers claimed
Monsanto's right to charge royalties on Roundup Ready expired in
2010 under Brazilian law while the company said its patent
didn't expire until 2014, the same as in the United States.
Monsanto already stopped charging royalties on Roundup Ready
sales in February after Brazil's Upper Tribunal of Justice (STJ)
rejected the company's 2014 patent claim. But some farmers
wanted the firm to pay back the royalties collected since 2010.
China, which buys 70 percent of Brazil's soy, approved
Intacta imports on June 10, clearing the way for the new seeds
to be sold in Brazil and giving Monsanto a way out of the
royalty dispute in its second largest market after the United
Monsanto's spokesman in Brazil declined to say how sales of
Intacta were progressing but estimated 2.8 million bags of the
seeds would be available for the 2013/14 crop that will be
planted starting in September in Brazil. This represents about 8
percent of the expected demand for seed.