RAFI-USA just published a handy brochure to help farmers understand the terms in Monsanto's licensing agreements for use of its seed technologies. If you are a farmer who plants Monsanto's patented seed, such as Roundup Ready soybeans or Bollgard cotton, you are automatically bound to Monsanto's Technology Agreement and Technology Use Guide. The fine print tells you the following:

• The contract is non-negotiable.

• You allow Monsanto access to your fields to inspect crops and determine compliance with the contract.

• The contract remains in effect until you or Monsanto choose to terminate it (even after you stop growing the company's seeds).

Monsanto announced record profits today, citing $2 billion for the 2008 fiscal year compared to $993 million in 2007. The company's total net sales increased 35% in the last quarter, which it attributed to higher sales of Roundup and soybean seeds and traits. Vegetable seed sales also contributed to this increase following Monsanto's acquisition of De Ruiter vegetable seeds earlier this year.

Its seed revenues increased from $4.9 billion in 2007 to $6.4 billion in 2008. Fourth-quarter sales from its seeds and genomics sector increased 27% to $941 million. Seed and trait sales increased for soybeans (sales doubled), cotton, vegetables, and corn (sales went up 3 percent). The company noted that 29 million acres in the U.S. are planted to its triple stack traits, which increased the market share of its Dekalb seed brand.

Sales of Roundup increased by 48 percent, from $2.6 billion in 2007 to $4.1 billion in 2008.

According to recent USDA numbers, farm and ranch production expenses were expected to hit a record $295 billion this year and input prices have gone up by 53 percent (more than $100 billion). Prices paid for seeds rose 12.3 percent in 2007 and were projected to increase by 27 percent in 2008. That's a 40 percent increase in less than two years, writes Alan Guebert. Of course, then there's the cost of fertilizer and fuel, both of which have increased in price by more than 60 percent in one year. 

And the pockets? Hugh Grant, CEO and President of Monsanto, received more than $10 million in 2007 (a 32 percent increase from 2006). The agribusiness giants win again.

(OCM supports or opposes no candidates.)  This recent article is of interest.

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AGRICULTURE

Farm Groups Blast McCain On Anti-Subsidies Stance ...

Monday, Oct. 6, 2008
by Jerry Hagstrom

The National Farmers Union, the American Farm Bureau Federation, and key commodity group leaders are denouncing Sen. John McCain's recent statements that he would end ethanol and farm subsidies on grounds that they raise food prices. Speaking Wednesday in Missouri, the GOP presidential candidate argued that subsidies "inflate the price of food, not only for Americans but for people in poverty across the world."

The President of the United Nations General Assembly condemned Monsanto as a profiteer in the world food crisis last week. His quote:

The essential purpose of food, which is to nourish people , has been subordinated to the economic aims of a handful of multinational corporations that monopolize all aspects of food production, from seeds to major distribution chains, and they have been the prime beneficiaries of the world crisis. A look at the figures for 2007, when the world food crisis began, shows that corporations such as Monsanto and Cargill, which control the cereals market, saw their profits increase by 45 and 60 per cent, respectively; the leading chemical fertilizer companies such as Mosaic Corporation, a subsidiary of Cargill, doubled their profits in a single year.

He also noted the role of market speculators:

At the same time, in response to the financial crisis, major hedge funds have shifted millions of dollars into agricultural products. These funds control 60 per cent of the supply of wheat and other basic grains. Most of these crops are purchased as “futures”. In other words, speculators have been increasingly active in food-related financial markets.

OCM has been actively investigating the role of speculation in rising commodity prices. To learn more, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

Monsanto lost one-sixth of its market value yesterday and Merrill Lynch said profits from Roundup "may slow," partly because the cost of phosphate, an ingredient in Roundup, increased ten-fold. Monsanto's Roundup business is expected to account for more than 40 percent of its earnings in 2009. This marked the biggest drop in Monsanto stock in eight years, since the company spun off from Pharmacia.

Maybe these projections have something to do with Monsanto's success in cornering the market. Over the last few years, as Monsanto has bought out or entered into licensing agreements with independent seed companies, farmers have seen their non-Roundup Ready soybean options plummet. And with talk of $500 seed in the future, farmers will be seeking out less expensive, including conventional, seed. Indeed, they already are. Yet some evidence points to a shortage of conventional seed. We believe Monsanto's dominance in the seed business has something to do with the short supply. As one farmer recently told me, "I'm getting forced to use whatever they put at you."

From Banks to Bread - Deregulation is The Seed of Destruction

By Mike Callicrate
 
Our economy is reeling from the failures of government to properly regulate business and enforce anti-trust laws. The liars, cheaters and thieves who have already made a killing are poised to make off with even more by way of a federal “rescue plan.”
 
For many years we have been told that Wall Street is “The Economy,” only to get a harsh reminder that it’s really Main Street, our farms, ranches and our manufacturers that produce our wealth. How absurd is it that we are now expected to save the very Wall Street predators that have preyed on the real businesses and working people of Middle America.

Elanco's acquisition of Monsanto's Posilac is complete. Five weeks ago Elanco announced that it would purchase the engineered hormone, also known as rBGH and rBST, for $300 million. The deal includes additional compensation for Monsanto, the details of which aren't being revealed. Elanco sold generic Posilac abroad for the past decade from a facility in Indiana and will now take over Monsanto's Augusta plant. In the face of increased opposition to rBGH, and as this market continued to shrink, Monsanto sold its rights to Posilac so it could focus on its biggest market: crop genetics and herbicides.

Dow AgroSciences announced its sixth acquisition in 12 months yesterday: Renze Hybrids, an independent that's served Iowa and regional farmers for 69 years. In addition to the company's corn business, Dow has purchased Renze's soybean facility (Dow's first soybean production facility, in fact). Dow is changing the name of Renze Hybrids to Renze Seeds. The Renze family will remain in positions of management and consulting, but it is also forming RenPro Inc., a new seed corn company to provide hybrid corn for Renze Seeds. The other companies Dow has acquired in the last 12 months include Agromen, MTI, Duo Maize, Triumph Seed and Dairyland Seed Co.

Read the local coverage here.

OCM's most recent "Taking It Back" event in Iowa made front page news last week. Renae Vander Schaaf of Farm News reports: 

'Monsanto profits are up 42 percent during the second quarter,' said State Representative Marcie Frevert, D-Emmetsburg. 'Profits came in at $811 million, up from $570 million a year ago.' Frevert was speaking at a seed concentration event that took place Sept. 11 at the Clay County Fair, sponsored by the Organization for Competitive Markets. 

District 14 Representative Mark Kuhn, D-Floyd, who is also a farmer, became interested in the issue when he witnessed how the StarLink fiasco, in 2000, affected Iowa’s economy. He believes this concentration in the seed industry is an economic development issue.

Read the full article article here.

Reprinting from the AP article.

Tyson announces expansion in Brazil
Thursday, September 25, 2008

Associated Press,  SPRINGDALE, Ark. — Tyson Foods Inc. says it’s bought two poultry companies and has acquired majority ownership in a third in southern Brazil, home to many major producers of corn and soybeans.Terms of the deal were not disclosed.The Springdale meat producer announced its agreements with the companies on Thursday. Tyson said it would buy Macedo Agroindustrial and Avicola Itaiopolis, both in the state of Santa Catarina. Tyson said it has acquired a 70 percent ownership of Frangobras in the state of Parana.Tyson, the world’s largest meat company, had sales of $26.9 billion in fiscal 2007. The company said chicken sales made up 31 percent of total sales.