2013 Commodity ClassicGenuity® DroughtGard™ Hybrids Update John Fietsam – Product Development Manager
Today‟s DiscussionThe Issue• Significance• Who is Affected?The Genuity® DroughtGard™ Hybrids System• Differentiation• PerformanceThe Strategy• 2013 Stewarded Introduction• Market Expansion
What‟s the Biggest Issue in Agriculture Today?
How Much Water Does it Take to Grow a Corn Crop? • It takes about 10 acre-inches of available water to grow a plant with an ear = 271,543 gallons • Each additional 1 acre-inch of available water can = ~12 Bu/A gain in yield • 200 Bu/A corn requires about 26.7 acre-inches of available water = 725,020 gallons of water per acre THAT‟S ~1.1 OLYMPIC-SIZED SWIMMING POOLS*!!!*Assumes Olympic swimming pool holds ~660,000 gallons
Who is Affected by Drought?
WHAT ARE FARMERSASKING US TO DELIVER?
More Value. Less Risk.• More value (beyond yield) from their seed investment• Opportunities to mitigate risk – Genuity® DroughtGard™ Hybrids can: • Help protect yield potential during times of drought • Maintain top-end yield potential in the absence of drought Results in PEACE OF MIND!
Genuity® DroughtGard™ HybridsA System To Help Manage Risk CHALLENGE: In between the planting and harvesting of a crop, a lot of factors can limit yield. • Disease Tolerance GERMPLASM • Drought Tolerance • Yield Potential AGRONOMIC TRAIT PRACTICES PACKAGES • Farm-level • Insect Control Recommendations • Weed Control • Drought Tolerance Monsanto Company Confidential
Farmers Have Increased Crop Yields ByContinuously Adopting New, ImprovedProducts & Practices HISTORICAL CORN YIELD IN THE UNITED STATES 325 300 275 250 BUSHELS PER ACRE 225 Δ 26% 200 Δ 16% Δ 34% 175 150 125 100 75 50 1970 1990 2010 USDA Yield
How Important A Role Can AgronomicPractices Play?
Genuity® DroughtGard™ HybridsThe Drought-Tolerant Biotech Trait • Overview of cspB – The gene encoding cold shock protein B (cspB) from the soil bacterium, Bacillus subtilis, was inserted into corn – Also known as “RNA Chaperone” RNA Chaperone from Bacillus subtilis
Where Is The Proof That Genuity®DroughtGard™ Hybrids Work?2011 Soil Moisture and Sap Flow Field Study• Sap flow sensor continuously measures water uptake by plant• Capacitance probes continuously measure soil water content Sap flow sensor on the stalk Capacitance probes in the soil Location: Davis, CA
Where Is The Proof That Genuity®DroughtGard™ Hybrids Work? 2011 Soil Moisture and Sap Flow Field Study Results Experimental product - drought imposed around flowering 1400 Drought 1400 Irrigated 1200 1200 1000 Sap flow (mL) 1000 Sap flow (mL) 800 800 600 600 400 400 Control 200 200 CspB CspB = P < 0.05 0 Control 0 7/29/2011 8/4/2011 7/17/2011 7/20/2011 7/23/2011 7/26/2011 8/1/2011 8/7/2011 8/10/2011 7/17/2011 7/20/2011 7/23/2011 7/26/2011 7/29/2011 8/1/2011 8/4/2011 8/7/2011 8/10/2011 Average sap flow in CspB and control plants on different days during drought. Twelve replicates were averaged to obtain averages. Significance was tested at P < 0.05
Where Is The Proof That Genuity®DroughtGard™ Hybrids Work? DroughtGard™ Hybrids Example: 2012 Gothenberg, NE Sap Flow Field Study 2000 UNDER DROUGHT STRESS SAP FLOW (ML/DAY) 1600 1200 800 400 DroughtGard Hybrids DroughtGard Control 0 7/28 7/30 8/1 8/3 8/5DroughtGard™ Hybrids demonstrate hydroefficiency under drought stressconditions imposed around flowering2012 experimental product study measuring average sap flow in Genuity® DroughtGardTM Hybrids and control plants on different daysduring drought stress imposed around flowering. Twelve replicates were averaged to obtain averages. Significance was tested at P < 0.05
Genuity® DroughtGard™ HybridsHydroefficiency BOTTOM LINE Legend = with gene = w/o gene Water in soil Genuity® DroughtGard™ Hybrids can leave more water in the bank Water „banking‟ Time
Dual Advancement Process to SelectGenuity® DroughtGard™ Hybrids GERMPLASM DROUGHT-TOLERANT BIOTECH TRAIT Germplasm Pool Trait Evaluation Across Genetics Top-End Yield Products Selected Performance Evaluation in Stress Environments New Commercial Products Drought Stress Tolerance Selection Criteria Trait Selection Drought-Tolerant Selections Only after passing through the two selection criteria for germplasm and trait are they introduced into the market stacked with:
Field Trials for Genuity® DroughtGard™Hybrids in 2012 • Approximately 250 22% (57) of farmers sites • Up to 40 acres per farmer discarded • Stewarded to keep grain All sites harvested out of export markets 11-16-12 • Targeted to dryland acres in the Western Great Plains
Genuity® DroughtGard™ HybridsImpact on Yield in 2012 Ground Breakers® TestingOver 72 percent experienced (36 Responses – Block Only)an increase in bushels per 72.2%acre compared to otherproducts they grew undersimilar conditions. 16.7% 8.3% 2.8% No Change Increase Dont Know Decrease Source: Monsanto DroughtGard™ Hybrids 2012 Ground Breakers® Corn Trials – Summary of Post- Harvest Grower Interviews Conducted by Beck Ag, Inc. (November 17, 2012)
Future Planting Intentions forGenuity® DroughtGard™ HybridsDuring the Feedback DroughtGard Hybrids – 2013 Plans (113 Responses – Feedback Session Polling)Sessions, 113 growers wereasked .. “Based on yourexperiences in 2012 and 17.0%what you heard today, willyou plant DroughtGardHybrids in 2013?” A total of83 percent responded“yes” they would plantDroughtGard Hybrids in 83.0%2013. Yes - WillPlant DroughtGard Hybrids2013 Will Plant DroughtGard in in 2013 No - Wont Plant DroughtGard Hybrids2013 Won‟t Plant DroughtGard in in 2013
The Visual Difference Strong Performance in 2012 On-Farm Trials GROUND BREAKERS® ON-FARM TRIALS NICKERSON, KANSAS – JULY 3, 2012 Genuity® DroughtGard™ Hybrids Competitor Product 100RM Product Commercially projected DEKALB® Genuity® DroughtGard™ Hybrids selected for 2013 commercial deployment in head-to-head comparisons vs. competitor productsGenuity® DroughtGard™ Hybrids can deliver Hydroefficiency that can lead to: • fewer barren plants • more kernels per ear • less risk • more bushels in the bin
Yield Advantage of Monsanto EXP Products in2012 Ground Breakers® TestingWeighted Average YieldAdvantage vs. DuPontPioneer® Checks• Includes data for all EXP products tested without regard to commercial deployment decisions SOURCE: Weighted average yield advantages calculated using head to head comparisons of coded EXP products versus DuPont Pioneer® checks in 2012 Ground Breakers testing.
Yield Advantage of Monsanto EXP Products in2012 Ground Breakers® TestingWeighted Average YieldAdvantage vs.Monsanto Checks• Includes data for all EXP products tested without regard to commercial deployment decisions SOURCE: Weighted average yield advantages calculated using head to head comparisons of coded EXP products versus Monsanto in 2012 Ground Breakers® testing.
Genuity® DroughtGard™ Hybrids2013 Sales & Testing• Stewarded commercial introduction focused in the Western Great Plains• Elevators willing to accept & channel grain have been identified• >20 products introduced for testing – >10 available for commercial sale
SummaryThe Issue• Water is the most significant issue affecting agriculture today• All corn growing geographies can be affectedThe Genuity® DroughtGard™ Hybrids System• A system including the world’s first drought-tolerant biotech trait• Hydroefficiency can lead to less risk and more yield potentialThe Strategy• 2013 stewarded introduction focused on the Western Great Plains• Additional testing and broader market expansion planned for 2014