March 8, 2010

US soy producers mull plan for Monsanto's seed patent

US soy growers are considering a proposal that calls for industry giant Monsanto to share information about its blockbuster RoundUp Ready seed years before its patent expires.

Producers want Monsanto to share data about the soy seed with other seed companies in exchange for "appropriate compensation" so the other companies can be ready to supply it when the patent runs out in 2014, said Ron Heck, director at large for the Iowa Soybean Association. There is a roughly five-year delay between when companies start to breed a variety and when it is ready for sale, he said.

The industry does not have a process in place for expiring seed patents because RoundUp Ready was the first patented trait to be put in seed, said Heck, who is a past president of the American Soybean Association. The process being proposed for seed patents follows similar practices for patented insecticides, he said.

Farmers face a disruption in seed supply if the RoundUp Ready patent expires and farmers are unable to continue using it at a lower price, Heck said. Soy growers were discussing the matter at the annual Commodity Classic conference.

"Some process has to be put in place, either voluntarily or through legislation," Heck said. "We need to get this done right away. Without a resolution to how the industry handles this problem, you're looking at the seed industry freezing up."

A representative for Monsanto did not immediately respond to a request for comment.

RoundUp Ready soy has been wildly popular among farmers because they help control weeds. Monsanto developed "market power because farmers wanted to buy this trait," and producers understand that companies need incentives to develop new products, Heck said.

"We support the rights of patent-holders," he said.

Rob Joslin, president of the American Soybean Association, agreed growers support new technology and said companies that develop new products need a way to recoup their costs. When patents on technology expire, however, "it needs to have a mechanism for going into the generic marketplace," he said.

It is a "tough balance" for growers to take an official stance on the issue because farmers want competition in the marketplace and technological advances, said Darrin Ihnen, president of the National Corn Growers Association.

The push for action on Monsanto's seed comes as the USDA and Department of Justice are preparing to hold the first in a series of workshops on competition and regulation in agriculture on March 12. The meeting, to be held in Iowa, will offer producers a forum to provide examples of "potentially anti-competitive conduct," according to the government. Issues relating to patents are on the agenda, and representatives of the American Soybean Association and Monsanto are slated to speak.

Farmers across the country have communicated an "expression of concern" about whether suppliers of seed technology are competing on a level playing field, Agriculture Secretary Tom Vilsack told reporters at the conference. The government wants to make sure the playing field "is in fact level," he said.

"I'm not sure where this journey is going to end," Vilsack said about the examination of competition and regulation. "I just think it is important to begin the journey."