Why does Monsanto sue farmers who save seeds?

Monsanto seeks intellectual property protection, including patents and often plant breeders’ rights, to cover many of the traits and seed varieties we develop. These protections help to ensure we are paid for our products and for the investments we put into developing them.  We sell these proprietary products in the market using business models that reinforce our obligations to reinvest, provide a return to our shareowners and provide for our employees. Monsanto re-invests more than $2.6 million per day in research and development that ultimately benefits farmers and consumers.  No business can survive without being paid for its products or services and we maintain rigor in assuring the success of the business models we implement to deliver our products and services to the market.

When farmers purchase seed with a patented trait in the United States or Canada, they sign an agreement that they will not save and replant seeds produced from the seed they buy from us. In fact, other seed companies sell their seed under similar provisions. The vast majority of farmers understand and appreciate our research and are willing to pay for our inventions and the value they provide as long as their neighbor is not allowed to operate outside of the rules.  Farmers want a level playing field and when one farmer decides not to honor his or her agreement, other farmers expect a seed company to enforce that agreement.  When we become aware, through our own actions or through third-parties, of individuals who are suspected of violating our patents and agreements, we work with professionals to verify the allegation and, if necessary, approach the farmer for a discussion around accountability for the actions we confirm.  This effort keeps integrity in the system for everyone.

Here are the facts:

  • More than 300,000 farmers a year buy seed under these agreements.
  • “Saved seed” is vastly a soybean seed issue.  Farmers in most parts of the world do not save corn seed.
  • A very small percentage of farmers do not honor this agreement.
  • When we confirm a violation, most cases are settled without any legal process and in many instances the farmers remain our customers.
  • Since the launch of our technology over 12 years ago, Monsanto has filed approximately 138 lawsuits in cases where settlements were not initially possible.
  • Most lawsuits settle before trial but we have completed 9 trials since 1996 where we could not reach a settlement.  In every one of these instances, the jury or court decided in Monsanto’s favor.
  • Regardless of when and how settlements occur, the proceeds are donated to youth leadership initiatives, including scholarship programs.