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Monsanto offers cash to US farmers using controversial chemical

The United States faced an agricultural crisis this year caused by new formulations of dicamba-based herbicides

Tom Polansek | Reuters  |  Chicago 

Monsanto's research farm, grain
Monsanto's research farm is pictured near Carman, Manitoba, Canada. (Photo: Reuters)

Co will give cash back to who buy a weed killer that has been linked to widespread crop damage, offering an incentive to apply its product even as regulators in several U. S. states weigh restrictions on its use.

The incentive to use XtendiMax with VaporGrip, a herbicide based on a chemical known as dicamba, could refund farmers over half the sticker price of the product in 2018 if they spray it on soybeans engineered to resist the weed killer, according to company data.

The United States faced an agricultural crisis this year caused by new formulations of dicamba-based herbicides, which farmers and weed experts say harmed crops because they evaporated and drifted away from where they were sprayed.

says XtendiMax is safe when properly applied. The company is banking on the chemical and soybean seeds engineered to resist it, called Xtend, to dominate soybean production in the United States, the world's second-largest exporter.

BASF SE and DowDuPont also sell versions of dicamba-based herbicides.

US herbicide Monsanto’s cash-back offer comes as federal and state regulators are planning to limit when can be used Photo: Reuters

Monsanto's cash-back offer comes as federal and state regulators are requiring training for farmers who plan to spray in 2018 and limiting when it can be used.

Weed specialists say the restrictions make the chemical more costly and inconvenient to apply, but Monsanto's incentive could help convince farmers to use it anyway.

"We believe cash-back incentives for using XtendiMax with VaporGrip Technology better enable growers to use a management system that represents the next level of weed control," said Ryan Rubischko, product manager.

XtendiMax costs about $11 per acre to buy, and is offering $6 per acre in cash back to farmers when they apply it on Xtend soybeans along with other approved herbicides, according to the company.

competes against rivals including Bayer AG to sell genetically modified soybean seeds and chemicals to farmers. Bayer is selling its LibertyLink soybean brand, a main rival to Xtend, to BASF as part of a deal to acquire for $63.5 billion.

also faces increasing government oversight.

This month, North Dakota said it planned to prohibit the use of herbicides after June 30, 2018, and when temperatures top 85 degrees Fahrenheit in a bid to prevent the chemical from drifting away from where it is sprayed. Missouri said it intends to finalize restrictions on XtendiMax soon, after banning sprayings of BASF's herbicide, called Engenia, in 10 counties after June 1, 2018, and statewide after July 15, 2018.

Arkansas is close to prohibiting sprayings after April 15, 2018, the tightest limits yet, while Minnesota is also considering restrictions.

The states are taking action after the US Environmental Protection Agency mandated special training for users for 2018, requiring farmers to keep records proving they were complying with label instructions.

"Utilizing the technology, the cost will go up because of these changes," said Andrew Thostenson, a specialist for North Dakota State University.

predicts will double plantings of Xtend soybeans to about 40 million acres next year despite reports of crop damage this past summer.

Farmers said its cash-back offer was designed to increase sales.

"I think they're just trying to buy more acres," Dan Henebry, an Illinois farmer who plans to grow Xtend soybeans next year, said about

First Published: Tue, December 12 2017. 02:51 IST