Creating Sustainable Outcomes for Agriculture

Jerry Steiner, Executive Vice PresidentMonsanto Company

IPC Fall 2007 Seminar

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Steering Committee Members and Participants

American Soybean AssociationBunge LimitedCargill, IncorporatedThe Coca-Cola CompanyConservation InternationalDuPontGeneral Mills Inc.Grocery Manufacturers Association/Food Products Association

The Heinz Center McDonald’s Mars, Inc.MonsantoNational Corn Growers AssociationNational Cotton CouncilThe Nature ConservancyUnited Soybean BoardWal-Mart Stores, Inc.World Wildlife Fund

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The broad conversation on sustainability has matured in many sectors

Common sense and technology are teaming up to create practical solutions

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The Challenge Ahead

Technology can play a

big role

Demand

Farmer Health

Environment

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There are opportunities to better define sustainability in agriculture – the global picture

Key environmental impacts of global agriculture:

And some key realities:Global food demand will double in 50 yearsIncreased income (globally 2.4 times by 2050) will lead to increased consumptionPer capita arable land globally is decreasingRenewables and biofuels are also a part of overall demand for agricultural productionThe poorest people on the planet have no land and can spend 75% of income on food and still go hungryBetter production systems exist for virtually all crops, but they are often disseminated too slowly

55% of habitable land and growing70% of human use of water, >60% wasted70-90% of farmers lose more carbon/year than put backHighest industry use of chemicalsMore environmental impact, including pollution, than any other human activityClimate change — 25+% of greenhouse gases that contribute to climate change

Source: World Wildlife Fund - US

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Global Precipitation At A Glance (From National Geographic)

Source: National Geographic Oct. 2007

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Our working definition of sustainable agriculture

Sustainable agriculture will meet the needs of the present while improving the ability of future generations to meet their own needs by:

Increasing productivity to meet future nutritional and fiber needs while decreasing impacts on the environment. Improving human health through access to safe, nutritious foodImproving the social and economic well being of agricultural communities

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Premise: We can shift the discussion on sustainability in agriculture

We can:Focus on outcomes and results and allow producers to find the best way to achieve results through a full range of agriculturaltechnology choicesApply information at the grower level in support of larger, overarching goal of shifting the entire sustainability curveDrive change where the opportunity is greatest – throughout large area “conventional” agricultureEventually, create pull through the production system all the way to the consumer via partner companiesUse peer-reviewed science to identify goals and measure impacts, progress, and results

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Water

Initial key impact areas for environmentally sustainable agriculture (Focus on Large Area Crops)

ExamplesImpact Area

Biodiversity, on-farm habitat, acres converted

Habitat

Water use, water effluent quality

Soil erosion, soil carbon, ground cover

Soil

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What can be measured?

Work in Progress: Possible ideas :

Farmer Input: (Nitrogen usage, tillage, yields, green stripes, on farm wild habitat/biodiversityRemote Sensing: (crop residue, soil disturbance, water flow andpractices to prevent flow into streams, crop stressContinue other landscape Measurements (water quality etc.)

Broad Results such as reducing input per unit produced of: N, Soil Loss, Land used, Water added, etc., and added farmer viability

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Breeding better seeds delivers results

Actual Breeding Plus Cultural Practice Gain: Corn Yields Continue to Advance in U.S., Tremendous Gains Made Last Ten Years

Source: March 2006. Crop Science. Ref# 46:528-543

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1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

1865 1875 1885 1895 1905 1915 1925 1935 1945 1955 1965 1975 1985 1995 2005Year

Ave

rage

Cor

n Yi

elds

(kg

/ha)

Double CrossOpen Pollinated

Single Cross

Biotech

= Average annual gain MT/Hectare

.2

.1

.070

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Working On Higher and More Stable Yields In Rainfed Settings

- Gene + Gene

Source: Monsanto field trial research, 2006.

2004 2005 2006

Hybrid 1

Percent yield difference vs. control

02468

101214

YIEL

D D

IFFE

REN

CE V

S.

CON

TRO

L (B

U/A

CRE)

Hybrid 1: 2004, 4 locations; 2005 5 locs; 2006, 1 loc (20 reps)

7.3% 10.5% 23.2%

NO

T TE

STED

2004 2005 2006

Hybrid 2

Percent yield difference vs. control

02468

101214

YIEL

D D

IFFE

REN

CE V

S.

CON

TRO

L (B

U/A

CRE)

Hybrid 2: 2004, not tested; 2005, 5 locs, 2006, 3 locs

10.9% 9.0%

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Producing Higher Yields With Fewer Inputs Including Nitrogen

2006 FIELD RESULTS CONFIRM CONTINUED PERFORMANCE OF LEADS IDENTIFIED IN 2005

140

145

150

155

160

165

170

175

0

EVENT 1

EVENT 2

CONTROL

LEAD NITROGEN UTILIZATION GENE(ACROSS 3 LOCATIONS: ILLINOIS AND IOWA)

YIE

LD P

ER

AC

RE

Reduction in Applied Nitrogen

40 80 180

NITROGEN INPUT: LBS/ACRE

Source: Monsanto field trial research, 2006.

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The Challenge Ahead

Technology can play a

big role

Demand

Farmer Health

Environment