Print This PageLetter to Stakeholders
Hugh Grant
We have seen significant changes in global agriculture. In response to increasing social and environmental needs, farmers worldwide are working to maximize the yield from every acre of land.
Ever-rising demands are being placed on agriculture. The global population is increasing, people in developing economies are eating better, and more countries are using biofuels as a cleaner burning, home-grown source of energy. Land to bring under cultivation is declining as cities compete for land, water, and other resources. Farmers are stepping up to this challenge — and Monsanto is playing a uniquely vital role in their efforts.
When I started with Monsanto’s predecessor in 1981, the average U.S. corn yield was 109 bushels per acre.1 In 2006, U.S. farmers produced an average of 150 bushels of corn per acre — a 37 percent increase. Molecular-based breeding and biotech traits contributed to these increases. Over the next decade, even more increases in yield are expected, as well as efficiency improvements in the use of water and nitrogen.
Increased productivity adds to farmers’ incomes, allowing them to reinvest in their farms, families and communities. This is true for large commercial farmers as well as for those with only a few acres. Advances in productivity increase the quality of life for millions of farm families around the world.
Better productivity also means less environmental impact per bushel. Farmers make fewer pesticide applications on their land. They make fewer tractor passes, so they reduce their greenhouse gas emissions. They till the soil less, thus sequestering more carbon. Increasing the productivity of existing farmland makes it less likely that rain forests and other sensitive ecosystems will be converted to farmland. Drought-tolerant crops, now progressing through our research pipeline, are intended to allow crops to “sip” water instead of “gulping” it. That will be important in drought-prone regions and critical in places that depend on rain-fed agriculture.
Agriculture continues to be vital to the welfare of many people. We are making progress, working with many partners, to improve agricultural performance, to reduce our carbon footprint, to improve biodiversity, and to demonstrate economic improvements to farmers around the world. Not only is this good for our planet and our customers; it is good for our business. There is still a long way to go. But I’m pleased with our progress and optimistic about the path ahead. I hope this report helps you to share our enthusiasm.
Hugh Grant
Monsanto Chairman, President,
and Chief Executive Officer
November 30, 2007
