Monsanto May Lose Billions in Brazil Over “Monsanto Tax”

Farmers Have Had Enough With Monsanto’s Royalty Taxes and Penalties

In case you’re wondering how Monsanto has risen to the ranks of a superpower, a major reason is their patent on GM seeds, like the GM soya seeds in Brazil, which account for nearly 85 percent of the country’s total soybean crop. Each GM seed is patented and sold under exclusive rights.

Therefore, farmers must purchase the GM seeds every year, because saving seeds (which has long been the traditional way) is considered to be patent infringement. Anyone who does save GM seeds must pay a license fee to actually re-sow them.

But that’s not all.

In Brazil, Monsanto has charged farmers a 2 percent royalty fee on all of their Roundup Ready sales since 2005! And, they test all of the soy seeds marketed as “non-GM” to be sure they don’t contain any Monsanto seeds. If they are found to contain the patented seeds, the farmer is penalized close to 3 percent of his sales!

The issue with the latter penalty is that GM soy is very hard to contain, and often contaminates nearby fields. So farmers are forced to pay a penalty for having their fields contaminated with GM crops, through no fault of their own – and likely against their wishes entirely!

For years now, farmers have been taking Monsanto to court over their excessive fees and taxes, and in 2009, a group of farmers sued the company, claiming the Monsanto tax was illegal because it was impossible to keep the GM seeds away from the non-GM varieties.

A judge ruled that the tax was illegal, especially since the patents on Roundup Ready seeds in Brazil already expired. Monsanto was ordered to stop collecting all royalties … and to return all the royalties collected since 2004 – an amount that could add up to a minimum of $2 billion!

Monsanto appealed, but in June 2012 the Supreme Court dismissed it, so it looks like Monsanto is going to be getting their just deserts.

France, India Also Find Monsanto Guilty

Earlier this year, a French court found Monsanto guilty of chemical poisoning in a case involving a French farmer, who suffered neurological problems after exposure to Monsanto’s Lasso weed killer. A few years before that, a French court again found Monsanto guilty, this time of falsely advertising its Roundup herbicide as "biodegradable," "environmentally friendly" and claiming it "left the soil clean."

France has also recently asked the European Commission to suspend Monsanto's authorization to plant genetically modified MON 810 corn, citing "significant risks for the environment" shown in recent scientific studies (Germany has also banned the cultivation of MON 810 corn).