Monsanto transitioned from a chemical manufacturing giant to a dominant force in agricultural biotechnology and genetically modified organisms (GMOs). Founded in 1901, the company pivoted toward life sciences in the 1980s, shifting focus from industrial chemicals to agricultural genetics and crop protection. This change positioned Monsanto to become one of the first entities to successfully engineer and commercialize transgenic crops.
Monsanto’s research teams were among the first to successfully modify a plant cell (1983), followed by the first field trials of genetically modified crops (1987). This foundation allowed Monsanto to develop a new business model centered on biological patents and proprietary seed systems. This innovation fundamentally changed farming practices and the structure of the seed industry worldwide.
The Core Technology of Genetically Modified Crops
The creation of a genetically modified plant involves the precise insertion of foreign DNA into a plant’s genome to introduce a new trait. Monsanto pioneered this technology, often using the modified bacterium, Agrobacterium tumefaciens, which naturally transfers DNA into plant cells. This process allows scientists to deliver a specific gene sequence that codes for a new function, such as insect resistance or herbicide tolerance.
For herbicide-tolerant crops, the technology relies on a gene sourced from the soil bacterium Agrobacterium sp. strain CP4. This bacterial gene codes for the enzyme CP4 EPSP synthase, which is the basis for the resistance trait. In unmodified plants, glyphosate inhibits the native EPSP synthase enzyme, shutting down the production of essential proteins.
By inserting the CP4 EPSP synthase gene, the engineered crop bypasses the herbicide’s action, allowing the plant to survive. A different application involved introducing a gene from the soil bacterium Bacillus thuringiensis (Bt), which allows the plant to produce a protein toxic to specific insect pests.
The Primary Product Line Roundup Ready Systems
Monsanto’s most transformative product line was the Roundup Ready system, which paired the broad-spectrum herbicide, glyphosate, with seeds genetically engineered to tolerate it. The system gave farmers a simple, flexible method for weed control, allowing them to spray the herbicide directly over their fields, eliminating weeds without harming the planted crop.
The first Roundup Ready soybeans were introduced in 1996, and the technology was rapidly adopted across commodity crops, including corn, cotton, and canola. By the early 2010s, over 90% of the soybeans grown in the United States were Roundup Ready varieties. This dominance was driven by the system’s ability to control a wide range of weeds and its compatibility with conservation tillage practices.
Controlling Seeds and Intellectual Property
To protect the financial investment made in developing transgenic seeds, Monsanto relied heavily on utility patents for the engineered gene sequence. Utility patents provided strong intellectual property protection over the genetic trait itself. This legal framework prohibited farmers from saving seeds from their harvest to plant in subsequent seasons, a practice common in agriculture for centuries.
Farmers purchasing the patented seeds were required to sign a Technology Use Agreement (TUA), a contract that explicitly forbade them from saving or selling the harvested seeds for replanting. The TUA ensured that farmers had to buy new seeds from Monsanto or its licensees every year, creating a recurring revenue stream. This model transformed the seed business from a one-time sale into an annual licensing arrangement for the technology contained within the seed.
Monsanto vigorously enforced these patents, initiating hundreds of legal actions against farmers suspected of violating the TUAs. The company used investigators to monitor and audit farms. A landmark 2013 Supreme Court case, Bowman v. Monsanto Co., affirmed that replanting patented seeds constituted patent infringement, solidifying the company’s legal control over the reproductive use of its engineered crops.
Corporate Legacy and Current Legal Status
Monsanto’s existence as an independent entity concluded in 2018 when it was acquired by the German pharmaceutical and life sciences company Bayer AG in a deal valued at $63 billion. Following the acquisition, the Monsanto name was discontinued, though product brand names, including Roundup, were maintained. This merger created the world’s largest seed and pesticide company.
The most significant element of Monsanto’s legacy has been the massive volume of lawsuits linking its herbicide, Roundup, to cancer. Thousands of plaintiffs, primarily agricultural workers, filed claims alleging that exposure to the glyphosate-based product caused them to develop non-Hodgkin lymphoma. This litigation was spurred by the International Agency for Research on Cancer’s 2015 classification of glyphosate as “probably carcinogenic to humans.”
Bayer inherited this legal liability and has faced numerous large jury verdicts since the acquisition. The company has dedicated billions of dollars, with settlements exceeding $11 billion, to resolve a large portion of the 170,000 claims. Despite these ongoing legal challenges, the Roundup product and the engineered crop systems remain a foundation of modern global agriculture.