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 (MON) 102.49 +0.08 : Co and leading grower organizations in Brazil announced 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. 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 co's first-generation Roundup Ready soybean business in Brazil from its EPS and free cash flow guidance, reflecting an estimated historical annual range of $0.20 to $0.25
