Monsanto background statement in regards to USDA report:

A June 25, 1999 report from the Economic Research Service (ERS) of the U.S. Department of
Agriculture reports that use of certain crops improved through biotechnology is associated with
"significantly higher yields,'' "significantly reduced herbicide treatments,'' and "fewer insecticide
treatments for target pests.''

ERS examined data to look at the extent of adoption of genetically engineered cotton, corn, and
soybeans. The analysis also included a comparison of yields and pesticide use for adopters and
nonadopters of the technology.

The ERS analyses of the data noted the following:

• Fewer insecticide treatments for target pests were required for Bt corn and cotton.
• In 1997, herbicide-tolerant technology significantly reduced herbicide treatments for soybeans and, to a lesser extent, for cotton.
• Use of Bt cotton and Bt corn is associated with significantly higher yields in most years for some regions.
• Herbicide tolerance in soybeans is associated with significantly higher yields in some regions in 1997.
• Adoption of genetically engineered technology on soybeans, cotton, and corn has increased dramatically since introduction in the mid-1990's, encompassing 20-44 percent of acreage planted in 1998.

Source: http://www.econ.ag.gov/whatsnew/issues/biotech/
Contact: Dr. Katherine Smith, ERS (202) 694-5500

This study confirms industry and other independent studies that demonstrate Roundup Ready
herbicide-tolerant and Bt insect-protected crops significantly reduced chemical herbicide and
insecticide use:

• The introduction of Bt Cotton has reduced the use of over 2 million pounds of chemical insecticides in the U.S. Nearly 1 million gallons of chemical insecticides eliminated in the U.S. during first three years of commercial availability of this improved crop (1996-1998).(1)
• The introduction of Bt Corn has resulted in a reduced chemical use on as much as 15 million acres in 1998. A report by an Iowa State professor indicates that 1.2 million pounds of insecticide would be reduced if 80 percent of corn acres were planted with Bt.(2)
• The introduction of Bt and virus resistant Potatoes have significantly reduced chemical use (an average of 80%) on more than 55,000 acres in 1998 by as much as 750,000 pounds. (This includes reductions of both insecticide and fungicide).(3)
• The introduction of Roundup Ready crops has shown reductions of as muchas 30 percent or more in total herbicide used in soy and corn crops.(4)

The Wall Street Journal recently noted the impact these crops are having on the traditional chemical industry's profits and viability ("In New World of Tough Plants, Pesticide Sales Soften Biotech Oriented Monsanto Thrives, but American Home May Quit Field", Wall Street Journal, 6/16/99). In fact, BASF reported that the pesticide industry was losing some $200 to $300 million a year since the introduction of biotech crops (Biotechnology Cuts Into Profit Margins, Says BASF, 01/14/99, Manitoba Cooperator).

Company news release
N1946