Monsanto Canada Moves to Seamless "In-the-Bag" Pricing for Genuity(R) Roundup Ready(R) Canola

No more Technology Use Agreement (TUA) under new sales model

WINNIPEG, MANITOBA--(Marketwire - July 5, 2012) - Monsanto Canada today announced details of its plans to change the way farmers purchase its popular Genuity® Roundup Ready® canola to make it simpler for farmers, retailers and Monsanto.

Effective for the 2013 crop year, the cost of purchasing Genuity® Roundup Ready® canola will move to a seamless "in-the-bag" model with one price - a sales model consistent with how farmers purchase seed and technology in other crops like soybeans, corn and wheat.

The new sales model significantly simplifies the sales process, as farmers are no longer required to pay a separate technology fee. As well, farmers and retailers will no longer have to pay GST with the seamless model because seed is zero-rated for GST. Finally, with the technology fee now being included in the price of a bag of Genuity® Roundup Ready® canola seed, there is no longer a requirement for farmers to sign a Technology Use Agreement (TUA).

"We asked growers their opinion about different purchasing processes and the seamless in-the-bag model was their clear preference," said Jesse Hamonic, canola trait marketing lead with Monsanto Canada based in Winnipeg. "Farmers told us they want simplicity and convenience when it comes to purchasing seed and technology. The old process required separate invoicing for technology and this was administratively cumbersome for our retail customers. Our decision to move to seamless in-the-bag pricing will make the process easier for all involved."

Hamonic also noted that the new sales model will mean farmers can more easily assess the per acre value of the Genuity® Roundup Ready® canola system and compare it to other options in the marketplace.

Roundup Ready® canola technology was sold on the acre when it was first introduced to farmers in 1996. In 2009, Monsanto introduced a per-bag technology fee for Roundup Ready canola technology, but the cost of the technology and the seed was still outlined separately. While that sales model change introduced some administrative improvements and offered growers a high level of transparency in technology pricing, the TUA was still an irritant for farmers and the retail network. Starting in 2013, the technology fee is being combined into the price of a bag of Genuity® Roundup Ready® canola.

Farmers who choose to plant Genuity® Roundup Ready® canola will still need to have a valid license to use Monsanto's patented technology. This license is the Technology Stewardship Agreement (TSA) which farmers can apply for and secure before purchasing Genuity® Roundup Ready® canola. Although there will no longer be a separate TUA for the payment of technology fees, farmers will still be held to the stewardship responsibilities outlined in the TSA contract.

"We continually evaluate all our business processes based on feedback we receive from farmers and our retail customers. The new sales model system is Monsanto listening to our customers and finding a way to meet both their needs and our needs," said Hamonic. "We know the Genuity® Roundup Ready® canola system continues to be a popular choice among farmers because of its outstanding yield performance and exceptional weed control."

Headquartered in Winnipeg, Manitoba, Monsanto Canada Inc. is part of the larger global Monsanto family. Monsanto Company is an agricultural company and 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. Learn more about our business and our commitments at

Contact Information:

Monsanto Canada
Trish Jordan
(204) 985 1005