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TED CROSBIEBREEDING LEAD

CITIGROUP PRE-CONFERENCE TEACH-IN

December 1, 2008

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Forward-Looking Statements

Certain statements contained in this presentation are "forward-looking statements," such as statements concerning the company's anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company's actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the company's research and development activities; the outcomes of major lawsuits, including proceedings related to Solutia Inc.; developments related to foreign currencies and economies; successful completion and operation of recent and proposed acquisitions, including Delta and Pine Land Company; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the company's ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company's facilities; and other risks and factors detailed in the company's filings with the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this presentation. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.

Trademarks

Trademarks owned by Monsanto Company and its wholly-owned subsidiaries are italicized in this presentation.

Extrax is a trademark of Renessen, LLC.

© 2008 Monsanto Company

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2000 2005 2010 2015 2020 2025 2030

2030 U.S. YIELD TARGET

2030: >2x 2000 BASELINE OF 137 BU/AC

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Monsanto’s Innovation Targeted at Doubling Yield by 2030, Extending Competitive Lead and Creating New Value

DOUBLING YIELD WITH TECHNOLOGY:U.S. CORN EXAMPLE

DOUBLING YIELD BY 2030U.S. BASELINE

CROP 2000 BASELINE1

Corn: 137 bu/ac

Soybeans: 37 bu/ac

Cotton: 632 lbs/acSTRATEGIC RATIONALE

Helping meet global demand

Furthering competitive lead

Creating new value for farmers that creates sustainable growth opportunities

STRATEGIC OUTLOOK

GERMPLASM IMPROVEMENTS

AGRONOMIC PRACTICE IMPROVEMENTS

BREEDING IMPROVEMENTS

BIOTECH IMPROVEMENTS

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OVERVIEW

Breeding and Biotech Provide Parallel R&D Paths to Commercial Products

PHASE II PHASE III PHASE IVPHASE IDISCOVERY LAUNCH

BREEDING and BIOTECHNOLOGY form two R&D pathways

Separate, but parallel, the BREEDING and BIOTECHNOLOGY pathways are linked by shared tools.

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SEED SOLD TO FARMERS

R&D PHASE:

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Germplasm Is Building Block for Better Seed; Germplasm Library Is Building Block for Better Breeding

BREEDING

TEMPERATESUB-TROPICAL

TROPICAL

SUB-TROPICAL

TEMPERATE

CORN SEED GERMPLASM LIBRARYASSEMBLED GEOGRAPHIC POOLS

GERMPLASM

OVERVIEW:Germplasm is like breeding in thoroughbred race horses –just as breeders select for the fastest race horses, seed breeders look to pair the best pool of genes for the strongest yielding seed

APPLICATION: Germplasm pools allow breeders to target key physiological traits:

Monsanto’s corn germplasm library is assembled from 36 breeding programs in 12 different countriesAnnually, breeders exchange more than a million different “packages” of germplasm material>50% of Monsanto’s corn hybrids result from intra-company crosses

• Increased Yield• Disease Resistance• Stress Tolerance• Grain Quality / Added Value

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Markers Allow Breeders to Get Best Combinations of Germplasm Faster With Greater Predictability

BREEDING

Regions associated with yield coming from Parent 1

1 2 5 6 7 8 9 103 4

Regions associated with yield coming from Parent 2

MARKERS

OVERVIEW:A corn plant has 40,000 genes spanning 10 chromosomes. Characteristics – or traits – are built from different pieces on different chromosomes. Markers are DNA ‘flags’ that indicate where particular genes are located

APPLICATION: Using markers to make better selections, breeders can improve the probability of success:

TRACKING CHARACTERISTICS FOR YIELDYIELD-RELATED AREAS ON CORN CHROMOSOMES

Probability of finding 1 trait that is controlled by 20 genes“Random” crosses: 1 per trillion

1 in 5

After application of markers and

breeding technology

Soybean Seed Chipper

This capability fuels the creation of top-tier germplasm and sets the genetic knowledge base to deliver next- generation biotech traits.

Automated Marker Analysis

BREEDING

Monsanto Investment in Molecular Breeding is Accelerating the Rate of Gain Over Conventional Breeding

► >$100M invested in molecular markers platform

► Staff of >150 scientists using proprietary tools are supporting the further development and use of marker technology

► Capability to analyze 10s of millions of samples

► $75M investment in proprietary software tools

► 3 million marker-trait associations providing detailed genome understanding

MOLECULAR MARKERS

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Core Research Methods Have Applicability Across Crop Platforms, Magnifying Investment and Productivity

BREEDING

CROP PLATRFORMS

CORN

SOYBEANS

COTTON

VEGETABLES

MARKER DISCOVERY

MARKER DETECTION

IT SYSTEMS

SHARED TECHNOLOGY AND METHODS

Focused on methods for discovering new

markers, moving to a “SNP” (single

nucleotide polymorphism)

platform for all crops

APPLICATION TODAY:Thousands of SNP markers already identified and in use for cornand soybeans

OPPORTUNITY: Development of SNP markers for 9 different row crop and vegetable species

MARKER-TRAIT ASSOCIATIONS

Focused on state-of-the-art platforms to detect markers that maximize efficiency and minimize cost

APPLICATION TODAY:Proprietary automated systems in place for corn, soybeans and cotton

OPPORTUNITY: Leverage existing platforms for additional species and upgrading systems for all crops

Focused on creating unified decision-

making systems to better enable

breeding efficiency

APPLICATION TODAY:Proprietary interconnected IT systems in place for corn, soybeans and cotton

OPPORTUNITY: Utilize existing systems to provide comparable capabilities for vegetables

Focused on the best application of marker-trait

associations to select for most commercially-relevant traits

APPLICATION TODAY:Associations used for complex traits –like yield – in corn and soybeans, and simpler traits in vegetables

OPPORTUNITY: Marker-trait associations will allow for predictive breeding for key traits in all relevant crops

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MAB Application in Soybeans Led to Roundup Ready 2 Yield Soybeans

BREEDING & BIOTECHNOLOGY

GOAL: Use DNA Markers To Improve the Efficiency of Plant Breeding Procedures

STRATEGY: Identify genes that control key agronomic traits; use new breeding procedures to better select for these genes; increase rate of genetic gain in breeding programs.

• Roundup Ready 2 Yield soybeans offer 7% - 11% yield advantage, based on near-isolinecomparisons, based on four years of field comparisons

2007 RR2Y - 170 Total Testing Sites

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Delivering Yield Favors Companies That Can Provide Both Breeding and Biotechnology Improvements in Concert

BREEDING + BIOTECHNOLOGY

FOCUS: YIELD

BIOTECH ADVANCES

+CURRENT GENETIC POTENTIAL AND TRAITS

WHAT MATTERS TO FARMERS IS THE YIELD AT HARVEST, WHICH IS A FUNCTION OF HOW MUCH POTENTIAL A SEED HAS AND HOW IT’S PROTECTED:

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NUTRIENT DEFICIENCY

WATER DEFICIENCY

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WEED-CNTROL TRAITS

NET REALIZED YIELD WITH CURRENT PROTECTION

GENETIC POTENTIAL PRESERVED THROUGH BIOTECH TRAITS AND PRODUCTION ADVANCES

GENETIC POTENTIAL (CURRENT)

NET REALIZED YIELD WITH NO PROTECTION

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NET REALIZED YIELD WITH FUTUREPROTECTION OPPORTUNITIES

SECOND-GENERATION

INSECT CONTROL

DROUGHT TOLERANCE

IMPROVED NITROGEN

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BELOW-GROUND INSECT CONTROL

ABOVE GROUND INSECT CONTROL

+BREEDING ADVANCES

FUTURE GENETIC PLATFORM

GENETIC POTENTIAL (FUTURE)

GENETIC POTENTIAL (FUTURE)

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BIOTECHNOLOGY

Early Pipeline Work Focuses On Identifying Best Genes and Introducing Leads Into Plants for Development

BIOTECH DISCOVERY

GENE SOURCES:Hundreds of thousands of genes are screened to find candidates for biotech traits• Genes come from plant

sources, including bacteria, fungi, microorganisms (like baker’s yeast) and native genes in plants

• Genes used in insect-protected crops to date are from “bacillus thuringiensis,” or “Bt,” a class of naturally occurring soil bacteria with thousands of different strains that target specific insects

GENE INSERTION:There are two key methods used to insert genes into plants:• Agrobacterium• Particle acceleration (gene

gun)

PARTICLE ACCELERATION – GENE GUN

AGROBACTERIUM

Agrobacterium tumefaciens naturally inserts DNA segments into plant cells –this is used to transfer identified genes

Gene guns use “biolistics,” using particles coated in DNA that are introduced into plant cells

GENE TRANSFER PLASMID

DNA

AGROBACTERIUM TUMEFACIENS

GENEINSERTIONTRANSFORMED

PLANT CELL WITH GENE

NUCLEUSCHROMOSOME

DNA

GENEINSERTION

NUCLEUSCHROMOSOME

PARTICLE ACCELERATION

TRANSFORMED PLANT CELL

WITH GENE

DNA-COATED PELLETS

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BIOTECHNOLOGY

Biotech Pipeline Follows Pharmaceutical-Like Development

DISCOVERYGene/Trait Identification

PHASE IProof Of Concept

PHASE IIEarly Development

PHASE IIIAdvanced Development

PHASE IVPre-launch

AVERAGE DURATION1 24 to 48 MONTHS 12 to 24 MONTHS 12 to 24 MONTHS 12 to 24 MONTHS 12 to 36 MONTHS

GENES IN TESTING TENS OF THOUSANDS THOUSANDS 10s <5 1

MONSANTO DISCOVERY + COLLABORATIVE PARTNERS

KEY INFLECTION POINT:AFTER PHASE II COMMERCIAL SUCCESS GOES TO >50% WITH LEADS ON COMMERCIAL TRACK

1. Time estimates are based on our experience; they can overlap. Total development time for any particular product may be shorter or longer than the time estimated here.

REGULATORY DATA GENERATION

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BIOTECHNOLOGY

Stage-Gate Model Provides Systematic Evaluation and Built-In Cost Prioritization

DISCOVERYGene/Trait Identification

PHASE IProof Of Concept

PHASE IIEarly Development

PHASE IIIAdvanced Development

PHASE IVPre-launch

AVERAGE DURATION1 24 to 48 MONTHS 12 to 24 MONTHS 12 to 24 MONTHS 12 to 24 MONTHS 12 to 36 MONTHS

KEY ACTIVITY

• High-throughput gene screening

• Model crop testing

• Optimizing gene in greenhouse and fields to establish proof of concept

• Commercial transformations of genes into crop plants

• Scale up events for large-scale field testing

• Extensive field testing to generate regulatory data and for agronomic testing

• Completion of regulatory submissions

• Commercial seed bulk up

TRIGGER TO ADVANCE TO NEXT PHASE

AVERAGE PROBABILITY OF SUCCESS2

5% 25% 50% 75% 90%

RELATIVE R&D COST PER PROJECT3

1. Time estimates are based on our experience; they can overlap. Total development time for any particular product may be shorter or longer than the time estimated here.2. This is the estimated average probability that the traits will ultimately become commercial products, based on our experience. These probabilities may change over time.3. Relative cost reflects an estimate of cumulative costs for a composite project. Actual spending will vary for any individual project.

GENE LEADS IDENTIFIED

“BEST” GENES IDENTIFIED

LEAD EVENTS SELECTED

REGULATORY PACKAGES SUBMITTED

RELEVANT REGULATORY REVIEWS COMPLETED

COST-INFLECTION POINT:PER-PROJECT COSTS ONLY MOVE UP ONCE COMMERCIAL TRANSFORMATIONS ARE MADE, AND THE PROBABILITY OF SUCCESS ALSO INCREASES

Step 1Gene sourcing& nomination

Step 2Gene cloning& sequencing

Step 3Transformation

Step 4Seed increase

Step 5Field testing

Step 6Data analysis& decision making

BIOTECHNOLOGY

Genes Selected for Evaluation Travel the Circuit from Sequencing to Field Testing

LIFE OF A GENE LEAD IN PLANT BIOTECHNOLOGY

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Performance of Lead Genes Re-Affirmed From Early Testing in Model Crops to Large Scale Field Trials

BIOTECHNOLOGY

DISCOVERY: MODEL CROPS

Gene B

Gene A

Gene E

Gene D

Gene C

Gene F

Gene A

Gene IGene H

Gene GGene F

Gene A

PHASE I: TARGET CROP

PHASE II & III: LARGE SCALE FIELD TRIALS

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R&D PIPELINE

R&D Engine Is Poised to Launch Average of One Game-Changing Technology Every Other Year Through Mid-Decade

R&D PIPELINE: ADVANCED GAME-CHANGING TECHNOLOGIES

2008 2009 2010 2011 2012 TO MID-DECADE

Roundup Ready 2 YieldSoybeans

SmartStaxDrought-Tolerant Corn Family1

Nitrogen-Utilization Corn Family1

• Second-gen soybean trait platform

• China import approval received in September 2008

• On track for 2009 release; 2010 full launch

• All-in-one corn trait platform

• On track for 2010 launch – Submitted for regulatory review and refuge reduction

• Value likely in improved yield under stress and potential for water replacement

• Targets ways to use nitrogen more efficiently

CONTROL HYBRID(76 BU/AC)

WITH GENE(94 BU/AC)

SUPERIOR, NE - FIELD TRIALS – 2007

1. Part of the Monsanto-BASF Yield and Stress R&D Collaboration

FARM PROGRESS SHOW – 2007

FARM PROGRESS SHOW – 2007

Monsanto’s Yield Leadership Widens With Each New Game-Changing Technology Launched

SUMMARY

DuPont Syngenta

2nd‐GenSoybean Trait

  2009Roundup 

Ready 2 Yield¹

2011Optimum®GAT®³

Option to License Roundup Ready 2 

Yield⁶

All‐in‐OneCorn Trait Platform 

  2010SmartStax

2012Optimum 

AcreMax™ Plus⁴No Specified Platform⁷

BiotechDrought

ToleranceCorn

    2012+² 2014+⁵ Post‐2014⁸

1. Controlled commercial release of 1‐2M acres; Large‐scale launch of 5‐6M in 2010

2. First trait in the Drought‐tolerant corn family, currently Phase III

3. Optimum® and GAT® are registered trademarks of Pioneer Hi‐Bred; Date as stated in DuPont press release 07‐17‐08

4. AcreMax™  is a trademark of Pioneer Hi‐Bred; Date as stated by William S. Niebur, Ph.D., Merrill Lynch Agricultural Chemicals Conference, 06‐05‐08, Slide 14

5. Ibid, Slide 23

6. Press Release: “Monsanto and Syngenta Reach Royalty‐Bearing Licensing Agreement on Roundup Ready 2 YieldSoybean Technology,” 05‐23‐08

7. No specified platform indicated via Corn Technology Pipeline, Syngenta Half Year Results Presentation, 07‐24‐08, Slide 22.  Relevant component traits: VIP/Broad lep: 2009 and RW dual mode of action: 2012

8. Ibid.

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