Monsanto makes transgenic seeds by introducing the genetic code of one species into the DNA of another. Its transgenic seed for soybeans, called Roundup Ready, prevents the plants from being killed by an herbicide that it also sells.
30 Million Acres
The company said in January that it expects to have its transgenic soybean product in 27 million to 30 million acres this fiscal year, an increase of more than 10 million acres from the previous year. Sales from seeds and genomics rose 13 percent to $8.58 billion in the fiscal year that ended in August, Monsanto reported in October.
The growers and seed companies contended that the transgenic seeds may damage the value of organic crops, trigger the evolution of herbicide-resistant superweeds and cost farmers their organic certification if traces of genetically modified crops are found in their yields. They also cited studies purportedly showing that transgenic seeds may harm human health.
Monsanto said its transgenics reduce costs, cut soil erosion and conserve soil moisture in dry climates. It also said it has committed not to take legal action against farmers whose crops may have "inadvertent traces" of transgenic seeds.
'Win for Farmers'
"This decision is a win for all farmers as it underscores that agricultural practices such as ag biotechnology, organic and conventional systems do and will continue to coexist in the agricultural marketplace," Snively said in the statement.
The lawsuit was brought by 36 agricultural and food safety organizations, 14 seed businesses and 33 farms and farmers across the U.S., according to an amended complaint filed in June. They include the Cornucopia Institute, Fedco Seeds Inc., Mendocino Organic Network and the Maine Organic Farmers and Gardeners Association.
Monsanto fell 68 cents to $78.84 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have risen 13 percent this year.
The case is Organic Seed Growers & Trade Association v. Monsanto Co., 11-02163, U.S. District Court, Southern District of New York (Manhattan).