Monsanto will no longer break out a technology fee for biotech seed. The company announced that in 2002 growers will make a single payment that covers both technology and seed, rather than one payment to the seed company and a separate payment to Monsanto for the technology. Seed companies will pay a royalty to Monsanto for the technology. Products included in this new pricing structure are YieldGard insect-protected corn, Roundup Ready corn and Roundup Ready soybeans.
Dow Chemical Company's $1 billion purchase of Rohm and Haas Company's agricultural business is complete. Dow estimates its agricultural sales will now reach $3 billion a year.
Deere & Company reportedly will cut 8% of its workforce 1,250 jobs through voluntary early retirement, according to Doane's Agricultural Report. Deere reported a 37% drop in second quarter profits.
The Tyson Foods purchase of IBP is back on after a judge ruled in June that Tyson could not withdraw its $3.2 billion purchase agreement. News reports indicate the two companies have renewed talks. Meanwhile, IBP shareholders who sold stock when Tyson tried to pull out of the deal have filed lawsuits against Tyson for their losses.
Land O'Lakes will purchase Purina Mills for $230 million. This purchase will boost Land O'Lakes' control of the domestic feed business to 13%, which includes the joint feed venture with Farmland Industries. Purina is expected to remain a separate company, but its 42 feed mills will combine with Land O'Lakes' and Farmland's 70 feed mills.