Farm Talk – PARSONS, KS – January 27, 2010 – In letters sent to producers and seed companies recently, Monsanto announced that the Roundup Ready 1 (RR1) technology is scheduled to go off patent after 2014.

This, according to Doug Shoup, Kansas State University southeast area agronomy specialist, may change the way farmers and seed companies handle soybean seed.

“Basically, when RR1 seed loses its patent it would allow farmers to keep seed back and replant it,” Shoup says.

Currently, growers using the RR1 technology are contractually bound by Monsanto and cannot replant seed.

“There have been people who have tried to get away with replanting soybean seed, but were caught and faced some pretty hefty fines and penalties.” he explains.

Fines and penalties large enough, according to Shoup, it could put some producers out of business.

“When the patent expires it would allow farmers to go back to the old days when they could save their seed back whereas now they agree not to do that,” Shoup says.

As the RR1 technology prepares to go off patent, Monsanto is focusing its research on the new RR2Y technology.

The letter states that:

“Monsanto continues to make significant annual commitments to improve soybeans. This includes a very expansive and sophisticated breeding program and four new biotech traits in mid-to late-development phases. Last year, we introduced Genuity Roundup Ready 2 Yield trait for farmers to try in 2009. We expect to offer over 65 new varieties of RR2Y soybeans for planting in 2010, which beat the competitive RR1 varieties by 4.7 bushels per acre in 2009 trials. The four new traits (dicamba tolerance, intrinsic yield, improved oil quality and Omega 3) will be stacked on the RR2Y platform by 2012. We believe that the grower benefits will be impressive, as compared to the post patent choice of a royalty free RR1 trait.”

“The important thing for producers to remember is that, at this point in time, all Monsanto’s research efforts are going to be focused on the RR2Y technology,” Shoup explains. “They are going to stop all breeding efforts with RR1 soybeans meaning that not only will the RR2Ys have more yield potential from the new Roundup trait, but RR1 varieties will have a zero yield improvements through breeding efforts.”

In the letter Monsanto confirmed that:

• All RR1 licenses will extend to the end of the term of all applicable patents for which Monsanto has granted licenses. As a result, the last crop year for which Monsanto will collect royalties on the technology is 2014.
• Licensees have no obligation to destroy or return seed due to expiration of the RR1 trait licenses.
• Monsanto will not use variety patents against U.S. farmers who save varieties containing the RR1 trait for planting on their own farms after expiration of the RR1 trait patent. Farmers should check with seed suppliers regarding the policy for seed varieties developed by other companies that contain the RR1 trait.
• Monsanto will maintain full global regulatory support for this first-generation technology for at least three years post patent (i.e., through 2017). This will allow grain from the 2014 crop to be sold and processed. We will continue to monitor and assess the planned use of this first-generation technology beyond 2017 and work with appropriate stake holders on any extension of regulatory support that may be needed.
• Seed company licensees who choose to work with RR2Y will be able to continue to sell varieties with RR1 after the patent expires.
  

Although the year 2015 is what most people are looking at, Shoup said there is one more date to be concerned with – 2017.

“In 2017 Monsanto is not going to be renewing their registration obligations in other countries with RR1 soybeans,” he says. “This means if Europe wants re-registration the technology would have to go through testing again to make sure the soybeans are safe environmentally and for consumption.”

Therefore, the way Shoup understands it, it would be illegal to export RR1 soybeans to other countries after that date.

Overall, according to Shoup, when RR1 soybeans come off patent it will give farmers some more freedom. Yet he advises producers that all of this is still a little fuzzy and a lot can change in four or five years.

“There has to be more details outlined in the future to know exactly what is going to happen in five years.” Shoup concludes.

Author: By Doug Toburen, Farm Talk Newspaper, Parsons, Kan.