Monsanto to charge RR seed fees by bag

Canola growers who buy Roundup Ready seed for 2009 will be charged license fees by the bag, not by the acre.

Monsanto Canada announced Friday that it will drop its $15 per acre license fee for Roundup Ready canola technology, starting Sept. 1, 2008 for the 2009 growing season, in favour of a per-bag fee structure.

Under the new system, Monsanto said in a release, growers will buy Roundup Ready canola technology at the cost of $156.63 per 22.7-kg bag, or $172.50 per 25-kg bag of seed.

“Invoicing will clearly indicate both the cost of the technology and the cost of the seed variety chosen by the grower,” the company wrote.

“Growers have told us our existing purchase procedure could be more convenient. Our existing process is also administratively time-consuming for Monsanto and the farm retail network,” said Norm Sissons, director of marketing for Winnipeg-based Monsanto Canada, in the release. “Pricing our technology by the bag will make the process easier for all involved.”

Canola growers will still have to sign a technology use agreement (TUA) agreeing to Monsanto’s terms of use for the Roundup Ready traits. However, the company said, “the new purchase model gives the grower the opportunity to purchase both technology and seed at one location.”

Also, Monsanto Canada said the need to report and reconcile planned canola acres will be “eliminated” under the bag license system.

The company added that access to its Roundup Ready Risk-Share Complete, a program offering added guarantees and protection against “adverse growing conditions,” will also still be available to farmers.

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