Economics of New Seed vs. Bin Run

• Income is lost by not selling bin run seed as commodity grain (1 bushel of bin run seed multiplied by the price of a soybean bushel).
• Average loss is 10-15% cleanout at harvest for bin run seed
• Handling and transportation costs for bin run are approximately 35 to 75 cents per bushel
• Bin run planting rates are generally 15% higher than new certified seed
• New seed yields an average of 1.8 bushels/acre more than bin run (University yield trials rand from 1.2-5.9 bushels/acre).

Limited Warranty Benefits

• Dealer agronomic support before and after the sale
• Risk management benefits of Roundup Rewards (over $500 million paid to growers since 1977)

New Innovations

• Royalties provide research and development of new traits and higher yielding germplasm
• Monsanto research and development spent $588 million in 2005
• Monsanto is 100% committed to agriculture
• New trait introductions
• 7-9 years of commercialization
• $50-100 million in total costs for a new biotech trait
• Seed companies and Monsanto are committed to our customer’s success