Creating Sustainable Outcomes for Agriculture

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1 Creating Sustainable Outcomes for Agriculture IPC Fall 2007 Seminar Jerry Steiner, Executive Vice President Monsanto Company

2 Steering Committee Members and Participants American Soybean Association Bunge Limited Cargill, Incorporated The Coca-Cola Company Conservation International DuPont General Mills Inc. Grocery Manufacturers Association/Food Products Association The Heinz Center McDonald s Mars, Inc. Monsanto National Corn Growers Association National Cotton Council The Nature Conservancy United Soybean Board Wal-Mart Stores, Inc. World Wildlife Fund 2

3 The broad conversation on sustainability has matured in many sectors Common sense and technology are teaming up to create practical solutions 3

4 The Challenge Ahead Environment Demand Technology can play a big role Farmer Health 4

5 There are opportunities to better define sustainability in agriculture the global picture Key environmental impacts of global agriculture: 55% of habitable land and growing 70% of human use of water, >60% wasted 70-90% of farmers lose more carbon/year than put back Highest industry use of chemicals More environmental impact, including pollution, than any other human activity Climate change 25+% of greenhouse gases that contribute to climate change Source: World Wildlife Fund - US And some key realities: Global food demand will double in 50 years Increased income (globally 2.4 times by 2050) will lead to increased consumption Per capita arable land globally is decreasing Renewables and biofuels are also a part of overall demand for agricultural production The poorest people on the planet have no land and can spend 75% of income on food and still go hungry Better production systems exist for virtually all crops, but they are often disseminated too slowly 5

6 Global Precipitation At A Glance (From National Geographic) Source: National Geographic Oct

7 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 food Improving the social and economic well being of agricultural communities 7

8 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 agricultural technology choices Apply information at the grower level in support of larger, overarching goal of shifting the entire sustainability curve Drive change where the opportunity is greatest throughout large area conventional agriculture Eventually, create pull through the production system all the way to the consumer via partner companies Use peer-reviewed science to identify goals and measure impacts, progress, and results 8

9 Initial key impact areas for environmentally sustainable agriculture (Focus on Large Area Crops) Impact Area Soil Water Examples Soil erosion, soil carbon, ground cover Water use, water effluent quality Habitat Biodiversity, on-farm habitat, acres converted 9

10 What can be measured? Work in Progress: Possible ideas : Farmer Input: (Nitrogen usage, tillage, yields, green stripes, on farm wild habitat/biodiversity Remote Sensing: (crop residue, soil disturbance, water flow and practices to prevent flow into streams, crop stress Continue 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 10

11 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 Biotech.2 Average Corn Yields (kg/ha) Open Pollinated 0 Double Cross.07 Single Cross Year Source: March Crop Science. Ref# 46: = Average annual gain MT/Hectare 11

12 Working On Higher and More Stable Yields In Rainfed Settings YIELD DIFFERENCE VS. CONTROL (BU/ACRE) Hybrid 1 Percent yield difference vs. control % 10.5% 23.2% Hybrid 1: 2004, 4 locations; locs; 2006, 1 loc (20 reps) -Gene YIELD DIFFERENCE VS. CONTROL (BU/ACRE) NOT TESTED Hybrid 2 Percent yield difference vs. control % 9.0% Gene Hybrid 2: 2004, not tested; 2005, 5 locs, 2006, 3 locs Source: Monsanto field trial research,

13 Producing Higher Yields With Fewer Inputs Including Nitrogen 2006 FIELD RESULTS CONFIRM CONTINUED PERFORMANCE OF LEADS IDENTIFIED IN 2005 LEAD NITROGEN UTILIZATION GENE (ACROSS 3 LOCATIONS: ILLINOIS AND IOWA) YIELD PER ACRE Reduction in Applied Nitrogen EVENT 1 EVENT 2 CONTROL NITROGEN INPUT: LBS/ACRE Source: Monsanto field trial research,

14 The Challenge Ahead Environment Demand Technology can play a big role Farmer Health 14