9 a? 1" I H. -l 2014 MONSANTO ANNUAL REPORT PREPARED FOR THE COUNTY OF MAUI 1 Monsanto Company............................................................................................................. 2-3 The Monsanto Pledge.............................................................................................................. 4 Hawaii’s Seed Crop Industry................................................................................................ 5-6 Monsanto in Hawaii & Maui County................................................................................... 7-8 Monsanto in the Community............................................................................................... 9-11 Environmental Stewardship................................................................................................... 12 Safety & Health....................................................................................................................... 13 State & Federal Oversight................................................................................................ 14-17 Agricultural Stewardship Practices................................................................................... 18-19 Integrated Pest Management........................................................................................ 20-22 Restricted Use Pesticides................................................................................................ 23-24 2014 Report on Restricted Use Pesticides in Maui County................................................ 25 Active Ingredients in Restricted Use Pesticides - Common Household Usage............... 26 Pesticides References & Resources...................................................................................... 27 Biotechnology References & Resources.............................................................................. 28 Monsanto Reference & Resources....................................................................................... 29 Introduction: Memorandum of Understanding....................................................................... ii 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI Introduction: Memorandum of Understanding In 2013, the County of Maui and Monsanto entered into a Memorandum of Understanding (“MOU”) in order to further a relationship and dialogue between Monsanto and the Mayor’s Office, and advance public knowledge regarding Monsanto’s agricultural practices and stewardship in the County. This MOU is a part of Monsanto’s efforts and commitment to working with the County of Maui to ensure transparency, responsible engagement, respectful dialogue and rational decision-making that takes into consideration the needs of our community. Elements of the MOU include: Information Sharing: to improve public understanding of agricultural practices, and to ensure that the County of Maui is appropriately familiar with key aspects of agricultural practices. Quarterly Meetings: to achieve the objectives set forth in this MOU, Monsanto and the County of Maui will meet at least quarterly. Education: Monsanto will provide, as reasonably requested, educational opportunities to County of Maui officials related to the operation of Monsanto’s agricultural facilities within the County of Maui. Examples may include: - Farm tours, presentations, seminars and/or panel discussions - Information sharing Annual Report: Monsanto will deliver, annually, to the Office of the Mayor, County of Maui, an Annual Report that includes the voluntary reporting measures and summary of other activities as set forth in the MOU. Annual reports will be issued within 60 days of the close of the calendar year. Agriculture as a whole is constantly evolving and is influenced by broad societal trends. Monsanto recognizes that Maui County, as many other places, is becoming more urbanized and less rural, and there is greater interest in our operations and farming practices. We acknowledge this change and view it as an opportunity to share information with an evolving community about agriculture in general. In the spirit of transparency, this report contains a variety of information about our company and our practices in Maui County, as well as other useful sources of information. For more information about our activities in Hawaii, or to request a Farm Tour, please visit www.monsantohawaii.com. 1 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI MONSANTO COMPANY COMPANY MONSANTO Monsanto is a sustainable agriculture company that delivers agricultural products that support farmers all around the world. Our company has 404 locations in 66 countries and employs more than 22,000 people globally. We are focused on empowering all kinds of farmers to produce more from their land while conserving more of our world’s natural resources such as water and energy. This is done via our agricultural services and products including our leading seed brands that are sold to all types of farmers in crops such as corn, cotton, oilseeds, fruits and vegetables. Every year, Monsanto must earn a farmer’s seed business, competing with other multinational companies and thousands of regional seed companies globally. Monsanto could not exist without our customers – farmers – who are the lifeblood of our company. More importantly, farmers are the support system of the world’s economy, working day in and day out to feed, clothe and provide energy for our world. Monsanto also produces leading in-the-seed trait technologies aimed at protecting farmers’ yields, supporting their on-farm efficiency and reducing their on-farm costs. We strive to make products available to farmers throughout the world by broadly licensing seed and trait technologies to other companies. In addition to the seeds and traits businesses, Monsanto also manufactures Roundup® branded herbicides and other herbicides used by farmers, consumers and lawn-and-garden professionals. 2 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI With an anticipated 2 billion additional people in the world by 2050, modern agriculture is helping farmers utilize technology to improve agricultural practices and increase yield. Source: U.S. Farmers & Ranchers Alliance, www.fooddialogues.com. 1 IRRI.org 2American Farm Bureau 3FAO.org 4EuropaBio 5PG Economics’ Seventh Annual Report 3 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI THE MONSANTO MONSANTO PLEDGE PLEDGE THE The Monsanto Pledge is our commitment to how we do business. It is a declaration that compels us to listen more, to consider our actions and their impact broadly, and to lead responsibly. It helps us to convert our values into actions, and to make clear who we are and what we champion. INTEGRITY - Integrity is the foundation for all that we do. Integrity includes honesty, decency, consistency and courage. Building on those values, we are committed to: DIALOGUE - We will listen carefully to diverse points of view and engage in thoughtful dialogue. We will broaden our understanding of issues in order to better address the needs and concerns of society and each other. TRANSPARENCY - We will ensure that information is available, accessible, and understandable. SHARING - We will share knowledge and technology to advance scientific understanding, to improve agriculture and the environment, to improve crops, and to help farmers in developing countries. BENEFITS - We will use sound and innovative science and thoughtful and effective stewardship to deliver high-quality products that are beneficial to our customers and to the environment. RESPECT - We will respect the religious, cultural, and ethical concerns of people throughout the world. The safety of our employees, the communities where we operate, our customers, consumers, and the environment will be our highest priority. ACT AS OWNERS TO ACHIEVE RESULTS - We will create clarity of direction, roles, and accountability; build strong relationships with our customers and external partners; make wise decisions; steward our company resources; and take responsibility for achieving agreed-upon results. CREATE A GREAT PLACE TO WORK - We will ensure diversity of people and thought; foster innovation, creativity and learning; practice inclusive teamwork; and reward and recognize our people. For more information about The Monsanto Pledge, please visit www.monsanto.com. 4 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI HAWAII’S SEED CROP INDUSTRY Maize (corn) in Hawaii dates back to the missionary era. Growth was limited to highland cultivation until plant breeding techniques mastered in the 20th century provided genetic resistance to tropical lowland diseases. After 50 years in Hawaii, Monsanto is a part of the State’s seed crop industry that generates an economic value of over $550 million to the State of Hawaii in direct and indirect economic contributions, and approximately $30 million in tax revenues for Hawaii each year. Collectively, seed companies like Monsanto employ approximately 1,400 residents in Hawaii. About 1,000 additional local jobs are created and supported by interactions between Hawaii’s seed companies and other businesses. Collectively, they represent about 33% of all jobs generated by Hawaii’s agricultural sector.* Of the 1.1 million acres of farmland in the State, the seed companies operate on 25,000 acres, representing one-third* of the statewide total of agricultural activity. *Source: Economic Aspects of Maui County’s Seed Industry, Paul H Brewbaker, PHD TZ Economics, 2014 5 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI In Maui County, the seed industry is*: • A generator of $84 million in economic output • More than 950 jobs including multiplier effects, county-wide • One-quarter of all Maui County agricultural activity • The most significant private industry activity besides tourism on Molokai, where the seed industry is the largest employer and comprises 10% of all private sector jobs. Direct, indirect, and induced total economic impacts of Maui County’s seed industry MILLION 2013 DOLLARS OUTPUT EARNINGS JOBS STATE TAXES Direct and indirect seed industry impacts $55.8 $22.6 769 $2.6 Including induced impacts (consumption) $84.2 $30.4 952 $4.0 Source: Author’s calculations using the State of Hawaii input-output model published in Hawaii DBEDT, Research and Economic Analysis Division (revised December 2013) The Hawaii State Input-Output Study: 2007 Benchmark Report (http://dbedt.hawaii.gov/economic/reports_studies/2007-io/) Annual seed industry outlays and employment in Maui County–aside from hundreds of millions of dollars in cumulative capital expenditure–translate through direct, indirect, and induced effects into approximately $84.2 million in total economic output for Maui County. Seed industry average annual wages are 45 percent higher than average earnings of all workers in Maui County, and are higher than in county and state governments and many private sector industries, including health care, finance, and accomodation. * Source: Economic Aspects of Maui County’s Seed Industry, Paul H Brewbaker, PHD TZ Economics, 2014 6 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI MONSANTO IN HAWAII & MAUI COUNTY In the late 1960s companies like Trojan Seed and Hawaiian Research established operations on Maui and Molokai. Over time, through a series of business changes and acquisitions, these companies evolved into today’s Monsanto Hawaii. The fundamental role of Monsanto’s seed growing operations in Maui County has not changed since then. Today, as in years past, our farms function as nurseries, where we breed and grow new varieties of corn and soybeans that will eventually be used by farmers throughout the world. In Maui County, Monsanto’s footprint encompasses less than 1% of all agricultural land. Our greatest asset is our employees, and we are proud of our hard-working employee ohana. In Maui County, Monsanto provides for approximately 500 residents and their families. The jobs we offer are well-paying, technical positions that provide opportunities for local graduates to enhance their skills and pursue successful careers while remaining in Hawaii. To encourage future leaders in our State’s agriculture and technology sectors, Monsanto supports scholarships, internships and other educational opportunities for young people in Hawaii interested in pursuing a career in agriculture. As our operations have grown over the last 50 years, Monsanto has helped return fallow farm lands to productive agricultural use, and preserve open space. State Land Use Districts, Maui County 400,913 30,060 311,601 8,326 AGRICULTURE CONSERVATION (in Acres) URBAN RURAL In Maui County, Monsanto’s footprint is less than 1% of the total of all state agriculture-zoned lands. Source: State of Hawaii, DBEDT, 2013 Databook, Table 6.04 -- Estimated Acreage of Land Use Districts, By Island December 31, 2013 7 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI Whereas some sectors of Hawaii agriculture have declined over time due to competition from other countries where labor, water and other costs are much cheaper, Monsanto’s agricultural jobs are not as easily exportable. There are few places in the world as ideal as the Hawaiian Islands for the seed industry in spite of Hawaii’s distance from the U.S. Mainland and the high cost of land, transportation and other resources. The State’s year-round growing environment, minimal temperature fluctuations, skilled agricultural workforce and a rigorous U.S. regulatory and legal environment are attractive to the seed crop industry, and contribute to the success of Monsanto’s global operations. As a result, the seed crop industry is likely to remain a source of good, lasting jobs for the foreseeable future. Hawaii’s temperate weather allows Monsanto the opportunity to grow nurseries 3 to 4 times per year from seeds that are first cultivated on the mainland. This allows us the opportunity to get new products developed and to the consumer faster. Since only one breeding cycle per year can be grown in North America, the Hawaii climate is ideal to help feed the growing world’s population. 8 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI MONSANTO IN THE COMMUNITY Monsanto Hawaii is a good neighbor and strongly supports the communities in which our employees live and work. Below are some of Monsanto’s community activities in Hawaii. SUPPORT FOR FARMERS Monsanto is an active participant and supporter of the Agriculture Security Watch, a program spearheaded by local police departments, the Attorney General, County Prosecutor and members of Hawaii’s agricultural community in response to growing theft, vandalism and agroterrorism at local farms. The goal of the program is to foster a more cohesive network among law enforcement partners, farmers, ranchers and agriculture organizations of all sizes to prevent further loss of property and damage to their farmlands and operations. SUPPORT FOR EDUCATION During the last several years, more than $1.3 million dollars have been donated to local schools in the form of scholarships and grants supporting STEM education. Monsanto’s educational support efforts in Hawaii include: Each year, more than $10,000 in scholarships are provided to Hawaii high school students seeking college degrees in agriculture or the life sciences. Monsanto and its employees are actively involved in numerous events and organizations that support agriculture in Hawaii, including the Maui County Farm Bureau, Molokai Farm Bureau, Hawaii Farm Bureau Federation, Maui County Soil & Water Conservation Districts, Maui County Agricultural Festival, Ag in the Classroom, the 4-H Livestock Program and Future Farmers of America. Paid internships for college students pursuing future careers in agriculture. Annually, Monsanto provides $25,000 in educational grants to schools in Hawaii to support and enhance science education. Teachers and schools have used these grants for a wide array of educational efforts including environmental studies, forensic sciences, science and robotics education, lab materials, textbooks, teaching aides, agricultural science classes and more. Monsanto Hawaii set aside approximately 10% of its farmland in support of diversified farms and ranching practices. An example is the Hawaii Agricultural Foundation Ag Park at Kunia. This endeavor is the first private-public partnership of its kind where local farmers grow a variety of crops such as chili peppers, peanuts, ulu and taro. In Maui County, Monsanto has set aside approximately 125 acres of land which is currently being used by other farmers for local agriculture production. A few years ago, Monsanto provided a $500,000 gift to the University of Hawaii at Manoa’s College of Tropical Agriculture and Human Resources (CTAHR). This grant continues to be utilized today for a fellows program to support the educational and professional development of their students. 9 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI MONSANTO IN THE COMMUNITY SUPPORT FOR COMMUNITY Each year, Monsanto contributes to various community and charitable organizations. In 2014, over $177,300 was donated to a number of entities for critical services for health and human needs, disaster relief, youth programs, educational support and environmental causes. Our employees have helped clear invasive species from fragile watershed areas, collected donations for local food banks, donated school supplies to students in need, collected toys for atrisk children, helped build homes for those in need, volunteered to feed the hungry, built school gardens and more. Through Monsanto’s Community Donations Programs employees are able to assist organizations they personally support. The program is managed by a Community Outreach Committee comprised of employees who collectively determine the program’s mission and criteria, and select recipients from applicants nominated by our employees. Donations vary and can be in the form of cash, employee matching gifts, challenge donations, in-kind goods or services, loaned talent, volunteerism or donated company property. The program encourages dialogue and engagement between employees and the community and has resulted in a significant amount of employee contributions and grants to dozens of nonprofits and schools. Through a separate program called the Monsantogether Volunteer Program, employees are encouraged to support the community organizations of their choice by volunteering their time and earning monies for these organizations. In 2014, employees in Maui and Molokai logged more than 4,880 volunteer hours. Since 2010, Monsanto employees have contributed more than 12,000 hours in volunteer time. Monsanto has established Community Advisory Panels (CAP) on each of the islands where it maintains operations. Comprised of various community leaders and residents, the CAPs allow us to gain community feedback and input about our activities in Hawaii, and to discuss our business operations, biotechnology, and community outreach efforts. The CAPs meet quarterly to discuss various topics ranging from agriculture and biotechnology to community programs and outreach activities. 10 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI SUPPORT FOR COMMUNITY (continued...) On Molokai, the Sweet Corn Fundraiser Program allows local schools and nonprofits to raise funds for their organizations through sweet corn donated by Monsanto. While sweet corn is not part of Monsanto’s usual commercial crop, the company recognizes the nature of rural communities and plants sweet corn specifically to assist large community fundraising needs. In 2007, Monsanto purchased ag land in Kunia, Oahu, for farming. The purchased land parcel included remnants of the Honouliuli Internment Camp, a historically significant site where members of Hawaii’s Japanese American community were detained by the Federal Government in the days following Japan’s surprise attack on Pearl Harbor on December 7, 1941. Monsanto approached the National Park Service and other community organizations like the Japanese Cultural Center of Hawaii and UH-West Oahu, in the hopes of restoring and preserving in perpetuity the WWII site for its historic value. Our sweet corn is harvested and delivered the same day to the beneficiary organization in convenient dozen-ear bags, ready for sale. Monsanto recoups no costs, allowing 100% of the proceeds to go directly to the organization. The program contributes fresh-from-the-field corn to the local food supply while supporting the community. To date, Sweet Corn Fundraisers have helped various Molokai schools and organizations raise more than $75,000 for their programs. 11 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI ENVIRONMENTAL STEWARDSHIP STEWARDSHIP ENVIRONMENTAL In Hawaii, Monsanto is a farmer too. Just like any farmer or rancher, the natural resources used to operate our businesses are of utmost importance to a sustainable operation. We care deeply about protecting our island’s natural resources and strive daily to preserve the land for future generations. A few of our environmental stewardship projects include: Monsanto’s local recycling efforts include the collection of used drip irrigation tubing for recycling. We recycle all waste cartons, batteries, and oils on an ongoing basis. Through Monsanto’s continued support of Maui County’s Soil & Water Conservation Districts, we supported the establishment of the Southwest Maui Watershed Project. The goals prescribed by this two year effort echo our own commitments as resource stewards. Improving the quality of our water is a responsibility of everyone in the community, and we are happy to do our part. At our Piilani Farm on Maui, all landscaping irrigation, toilet water, and agricultural irrigation systems use non-potable recycled water (R-1) purchased from the Kihei Wastewater Reclamation Facility. In 2010, Monsanto signed a Memorandum of Understanding with Maui County – pledging to use more R-1 if it were to become available. In addition to grants to various conservation programs in Hawaii, a team of Monsanto Hawaii employees performed a series of studies in collaboration with the company’s Molokai and Kunia farms to better understand the movement of irrigation water in the soil and its uptake by the crop. By making key changes to our irrigation and practices, we achieved a savings of approximately 50 million gallons per year, an overall reduction in water usage of about 25%. Ongoing energy conservation efforts include automated irrigation and drip tube systems. In coordination with Hawaii Clean Energy, interior and exterior lighting continues to be retrofitted with motion-activated timers and/or LED bulbs. 12 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI SAFETY AND AND HEALTH HEALTH SAFETY Monsanto’s highest priority is the safety of our employees, the communities where we operate, our customers, consumers and the environment. OSHA and EPA regulations. All employees are mandated to attend monthly internal safety meetings and on-the-job training to maintain a safe working environment, recognize and correct hazards, and follow all ESH policies and procedures. This represents a time commitment of approximately 4 hours per month per employee, or more than 19,000 hours of ESHrelated activities annually. Monsanto’s farms at Kaunakakai on Molokai and at Kihei on Maui represent two of only five facilities in the State of Hawaii that are certified in the Voluntary Protection Program (VPP), the highest safety classification administered under the U.S. Occupational Safety and Health Administration (OSHA). Achieving the VPP is usually a multi-year effort, involving an extensive series of safety audits, inspections, employee training programs, meticulous record-keeping, trends analysis, improvements to the workplace and visits by OSHA inspectors. Approval into VPP is OSHA’s official recognition of the outstanding efforts of employers and employees who have achieved exemplary occupational safety and health. In the U.S., only 0.02% of all companies are VPP certified. In 2014, Monsanto gave special recognition to 41 hourly Maui and Molokai employees who achieved a perfect attendance record – no sick days, leaves for disability, unexcused absences or unpaid leavew. We are proud of our employees’ commitment to good health and safety, which enabled them to earn this recognition. 2014 also marked the launch of a Monsanto Hawaii Wellness Program. Over 50% of our employees participated in the program designed to increase awareness of health and wellness. The program includes valuable tools that aid in the early detection of health risks. A variety of wellness activities are also offered to employees that best fit their individual lifestyle and wellness goals. On Maui and Molokai, Monsanto maintains staff members who work full time on Environmental, Safety, and Health (ESH) compliance. Routine internal inspections, training, and meetings take place on a monthly basis to maintain compliance with Federal and State 13 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI STATE AND AND FEDERAL FEDERAL OVERSIGHT OVERSIGHT STATE BIOTECH CROPS The US regulatory framework for GM (genetically modified) crops was laid out in the 1986 ‘Coordinated Framework for Regulation of Biotechnology’ (US OSTP, 1986). Based on existing laws, new regulations regarding plant pests, pesticides and foods were developed resulting in a vertical, product-based regulatory framework which applies to GM crops and derived foods. Three principal regulatory agencies conduct science-based assessments of risks to human health and the environment: the United States Department of Agriculture (USDA), the Environmental Protection Agency (EPA), and the Food and Drug Administration (FDA). according to the same procedures as other pesticides. The FDA has authority over human food and animal feed safety and the wholesomeness of all plant products, including those produced via genetic modification, under the Federal Food Drug and Cosmetic Act. The FDA has concluded that food and feed derived from GM crops pose no unique safety concerns and, therefore, that the food and feed products derived from these plants should be regulated no differently than comparable products derived from traditional plant breeding or any other genetic modification approach (US FDA, 1992). Labeling is only mandated for foods that are materially different than its nonengineered counterpart such as a compositional or allergen difference; the FDA does not mandate process based labeling informing consumers.* The USDA regulates the import, interstate movement, field trial release, and commercial release of GM crops under the Plant Protection Act, which is administered by the Animal and Plant Health Inspection Service (APHIS). Prior to approval for unrestricted release, as in commercialization, the USDA/APHIS must determine that the GM crop is not a plant pest. The EPA has regulatory oversight for all GM crops that produce a plant-incorporated protectant, such as virus or insect resistance. Plant-incorporated protectants are regulated * Globally, since 1994, 65 different countries including Japan, Canada, Mexico, Australia, South Korea, New Zealand, the European Union, Philippines, Taiwan, and South Africa, have conducted independent safety assessments and granted a total of 3,083 approvals of which 1,458 are for food use, 958 are for feed use, and 667 are for commercial planting.* A. König et al. Assessment of the safety of foods derived from genetically modified (GM) crops Food Chem. Toxicol., 42 (2004), pp. 1047–1088 14 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI BIOTECH CROPS (continued...) After 30 years of research and assessments, the safety of GM crops is strongly supported by the weight of scientific evidence, as well as the conclusions of the global scientific community. In fact, GM crops have been reviewed and tested more than any other crops in the history of agriculture and have been shown to be as safe as conventional crops. In 2013, a review by Nicolia et al of more than 1700 peer-reviewed, scientific studies was compiled and reviewed. The authors state: “We have reviewed the scientific literature on GE crop safety for the last 10 years ...., and we can conclude that the scientific research conducted so far has not detected any significant hazard directly connected with the use of GM crops.” * James, C. 2014. Global Status of Commercialized Biotech/GM Crops. ISAAA Brief No. 49. Citation: Alessandro Nicolia*, Alberto Manzo, Fabio Veronesi, and Daniele Rosellini. An overview of the last 10 years of genetically engineered crop safety research. Critical Reviews in Biotechnology. 2014 34:1, 77-88. 15 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI PESTICIDES regulations that are in place to protect human health and the environment. A pesticide is a product that is used to control pests such as insects, weeds, fungus, rodents, or microbes. These products may be naturally occurring or synthetic (man-made) substances, and are used by many individuals, farms, businesses, government agencies and other organizations. Pesticides are used in gardens and yards, on golf courses, in buildings, along public roadways and in parks, in sensitive environmental areas to keep out invasive species, and in many common household products such as toilet bowl cleaners, cockroach sprays, insect repellents, products that kill mold and mildew, flea and tick sprays, and pet collars. Pesticides are also used by many municipalities to keep their drinking water safe from harmful bacteria. The Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) directs the EPA to evaluate a multitude of possible risks to human health and the environment for all pesticide registrations. All pesticides are required to pass stringent risk assessments that typically encompass 5-10 years before they can be approved for use. This evaluation typically involves conducting and reviewing more than 120 studies. FIFRA also requires the EPA to rereview (re-register) a pesticide every 15 years which allows a product to be reevaluated to assure that they meet current EPA requirements, and review any incident reports or other research relevant to the safety of the pesticide. FIFRA requires registrants to report “adverse effect reports” that they become aware of at any time. In addition, EPA can act to remove, restrict or stop use of a pesticide if it determines it does not meet EPA’s FIFRA safety standards; FIFRA provides tools for EPA to act in emergency situations. This applies to all registered pesticides, including GE crops that express a pesticidal trait such as insect or disease resistance. In agriculture, pesticides are used by farmers in most production settings including on farms using biotechnology, conventional or organic practices. Pesticides are regulated primarily by the U.S. Environmental Protection Agency (EPA). The EPA, in combination with the Hawaii Department of Agriculture and the Hawaii Department of Health, conduct regular audits of our facilities and processes to ensure that we are compliant with applicable For pesticide products used on crops that are used as food, there are additional evaluations that specifically address human and animal consumption of these pesticide residues, as 16 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI Unlike labels on common household products such as chlorine bleach (which is a restricted use pesticide in certain applications), each pesticide product that farmers and ranchers use has an extensive label that includes a very specific set of rules for using the product as set forth by EPA. For example, a pesticide label will contain instructions on: PESTICIDES (continued...) defined by the Federal Food, Drug, and Cosmetic Act. Through all of this, the EPA uses an extensive, science-based process to ensure that products used properly will be safe for people, other organisms and for the environment. The EPA also considers potential impacts on key groups of people, such as children and the elderly, in its risk assessments. When that pesticide can or cannot be sprayed depending on specific weather conditions such as wind and rain Whether or not that product can be used near surface water On which crops the product can be applied, and at what stage of the crop’s growth The maximum amounts allowable per acre per season The maximum amounts allowable per acre per calendar year, wherever applicable The allowable rates per application If a pesticide successfully meets the EPA’s standards for safety, the pesticide is registered for use in a prescribed manner that is spelled out in a pesticide product label. Each pesticide has its own specific label that prescribes how to safely use and handle the product. There’s a saying: The label is the law. Strict adherence to the instructions on the pesticide label is mandatory. Violators are subject to significant penalties including fines and even imprisonment. The labels, which are based on the EPA’s extensive risk assessments, enable pesticide users to use the products in a manner that is safe for both human and environmental health. Pesticides used in the State of Hawaii must also be registered by the State. The State of Hawaii provides a database of all pesticide products licensed in the State of Hawaii. Product labels are also available at this site: http://npirspublic.ceris.purdue.edu/state/ state_menu.aspx?state=HI 1/20 USDA’s Pesticide Data Program monitors selected schools and childcare facility wells in Hawaii for pesticide residues at levels equivalent to 1/20 of a drop of water diluted in an Olympic-size swimming pool. To date, no levels have exceeded health standards. Source: http://www.ams.usda.gov/AMSv1.0/getfi le?dDocName=stelprdc5090867 17 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI AGRICULTURAL STEWARDSHIP PRACTICES As farmers, we value soil and water resources and recognize that our practices must be sustainable for our continued success. We partner with the USDA Natural Resources Conservation Service to develop and implement conservation plans for our farm to protect soil and water resources. In addition, we use equipment and management practices to reach our goals for air quality under the guidance of the Hawaii Department of Health, Clean Air Branch. Examples of Monsanto’s stewardship practices include: 1. CONSERVATION COVER – establishing perennial vegetative cover on land temporarily removed from agricultural production 2. CONTOUR FARMING – performing tillage and planting operations on the contour to increase water infiltration and reduce concentrated water flow 3. COVER CROP – growing grasses, legumes, or small grains for seasonal protection of water to mitigate dust erosion, improve soil, and establish beneficial insect refuges and nutrient management 4. GRASSED WATERWAY – shaping a natural or constructed channel and establishing adapted vegetation for the stable conveyance of runoff water 5. IRRIGATION SYSTEM, MICROIRRIGATION – utilizing a drip irrigation system to efficiently apply irrigation water without waste or erosion 6. IRRIGATION WATER CONVEYANCE – installing underground pipeline and appurtenances to reduce erosion and seepage 7. IRRIGATION WATER MANAGEMENT – controlling the rate, amount and timing of irrigation water to minimize soil erosion and control water loss from runoff and deep percolation 8. CONTOUR BUFFER STRIPS – establishing narrow strips of permanent, herbaceous vegetative cover around the hill slope, and alternated down the slope with wider cropped strips that are farmed on the contour 18 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI AGRICULTURAL STEWARDSHIP PRACTICES (continued...) 9. FIELD BORDER – growing a strip of permanent vegetation established at the edge or around the perimeter of a field 10. RESIDUE MANAGEMENT, SEASONAL – managing the amount, orientation and distribution of organic residue to maximize soil protection until immediately prior to planting the following crop 11. TERRACE – installing terraces at design heights, grades and intervals 12. RESTORATION AND MANAGEMENT OF RARE OR DECLINING HABITATS – restoring and managing rare and declining habitats and their associated wildlife species to conserve biodiversity 13. WINDBREAK/SHELTERBELT MAINTENANCE & ESTABLISHMENT – the windbreak/shelterbelt practice involves planting single or multiple rows of trees or shrubs in linear configurations 14. MINIMUM TILLAGE – minimize tillage to maintain as much plant residue on the soil surface as possible to mitigate dust and water erosion and improve soil health 15. BENEFICIAL INSECT REFUGES – temporary or semi-permanent areas planted with a broad variety of plant species to provide food and habitat for beneficial insects that naturally prey on destructive crop pests 19 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI INTEGRATED PEST PEST MANAGEMENT MANAGEMENT INTEGRATED Farming in Hawaii faces myriad challenges. One of the biggest is controlling pests including weeds, diseases and insects. Monsanto uses Integrated Pest Management (IPM) practices – a system of robust evaluations, careful decision-making and methodical controls to determine the best way to limit pest damage safely and economically. environment or other organisms, while at the same time successfully controlling the target pest. Examples include precision spray nozzles that minimize drift, and sprayers with advanced injection systems that apply products at micro levels. Equipment operators receive specific and recurring training on how to use the equipment properly and adhere to the pesticide’s label requirements. An IPM system starts with proper pest identification, and considers a pest’s biology and other environmental factors. Determinations are then made on how much pest and pest damage can be tolerated, and what control measures can be used. An IPM system considers multiple approaches to protect a crop. Agricultural practices create an unfavorable environment for the pest. Physical controls such as barriers or traps can eliminate the pest directly. Biological controls can leverage a pest’s natural enemies. Chemical control uses modern pesticides in a deliberate and targeted manner. All of these approaches are used for long-term, effective control of pests. Monsanto Hawaii works to comply with federal and state laws that govern responsible pesticide use. In the event of any noncompliance, we take appropriate remedial measures and fulfill all reporting requirements. Our IPM practices ensure that pesticides are used only when necessary for the health of the crop regardless of whether the crop is biotech or non-biotech. Our fields are small and managed by a dedicated staff of Monsanto employees, including individuals and supervisors licensed by the state of Hawaii. Each crop is provided great attention and care. By providing a high level of crop-supervision, this enables us to successfully grow crops while using minimum levels of inputs (water, fertilizer, pesticides). Today’s farmers and ranchers have access to a variety of modern equipment that can accurately and precisely apply products safely and without harm to the operator, the In Hawaii, our pesticide applications are made with computer-controlled spray equipment and our operators/supervisors are Hawaii State Certified Private Pesticide Applicators. 20 2013 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI INTEGRATED PEST MANAGEMENT (continued...) All of our employees who work with pesticides receive training every year regarding proper pesticide applications. The Hawaii Department of Agriculture, which regulates the manufacture, sale and use of pesticides in Hawaii, is able to review our pesticide application records and inventories at any time. We monitor the weather and wind regularly, use modern application tools that control the size of the pesticide droplet, and apply it very close to the plant we’re trying to protect. Utilizing these procedures ensures that we minimize spray drift, makes sure that the pesticide product reaches the targeted crops or pests, and provides for the safety of people and the environment. It is also our policy to apply pesticides only when necessary to protect the crop through the implementation of the IPM practices, as previously indicated. 21 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI .- --I . . -: l-r. INTEGRATED PEST MANAGEMENT . Integrated Pest Management or seeks to manage pest insects and weeds sustainably by combining biological, ecological, cultural and. chemical approaches. Successful pest management relies on considering the agroecosystem as part of the broader landscape that includEs natural areas existing sideby?side with crops. A guiding principle of ecologically?based pest management is increasing biodiversity near crops to attract and maintain an equally diverse natural enemyr population. IPM is a balanced approach to control pest insects and weeds; therebyr reducing input costs, conserving natural enemies, and minimizing development of resistance. Biological control is the use at" natural enemies that attack and kill insect pests. These include insects such as lueewings, lodybugs, minute pirate bugs, parasitic wasps, and moat-ids. lifte- Sunn hemp bordering a Tutu re cent field. This border is a refuge For butter?ies and bees, as weii as other bene?cial insects that attack corn pests such as corn ear worm. Cover crops can suppress problem weeds such as purpie riursecr'ge and sano'bur, thereby Substantially reducing chemise-i inputs. reduce erosion, improve soil characteristics. and conserve soil moisture. 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI RESTRICTED RESTRICTED USE USE PESTICIDES PESTICIDES Restricted Use Pesticides (RUP) are products that require specific handling and application procedures as their formulations and/or useconcentrations may pose additional shortterm risks to human health or the environment. These products may only be sold and applied by individuals who have the proper training and are certified by the State to handle and apply them correctly. The active ingredient in many RUPs are packaged and formulated for common household products (as noted on page 26). testing for applicators. There are multiple exams and certifications, each one is specific to the type and category of the restricted use pesticide and its applications. Preparation for the exam and certification requires many days of study and a wide range of coursework. Once the exam is passed and certification is gained, ongoing continuing education is required, and re-certification is required every five years. At Monsanto, all of our employees who use or apply pesticides received training annually. The Hawaii Department of Agriculture Pesticide Branch also enforces the pesticide laws. Monsanto applicators receive numerous visits from Enforcement Inspectors throughout the year for spot checks and audits. Hawaii Revised Statutes (Chapter 149A, HRS) includes Administrative Rules and Laws governing the sale and use of pesticides within the State of Hawaii. Under these laws, the Hawaii Department of Agriculture, Plant Industry Division, Pesticide Branch is responsible for the proper pesticide training and enforcement. In addition, the state’s Pesticides Branch conducts inspections of our farms that include the submission and inspection of detailed records, practices, worker protection standards and field sanitation (toilets, decontamination stations, hand washing). All applicators of RUPs, whether they are farmers or other pesticide users, must pass a comprehensive series of written exams in order to become certified. The Education/ Certification Division of the Hawaii Department of Agriculture Pesticide Branch provides training and certification 23 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI RESTRICTED USE PESTICIDES (continued...) On the following page is a table summarizing Monsanto’s use of Restricted Use Pesticides in the 2014 calendar year. To help provide some context to these figures, this table offers information on a per-acre basis as well as a persquare foot basis (43,560 square feet equates to one acre). To imagine how large an acre is, think about the size of an American football field minus the end zones, or about the size of six tennis courts, or three Olympic-sized swimming pools. (One Acre = A Football Field Minus the End Zones) 24 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI 2014 RESTRICTED USE PESTICIDES USAGE MAUI COUNTY ( MAUI AND MOLOKAI OPERATIONS ) LIQUID: COMMERCIAL NAME ACTIVE INGREDIENT TREATED ACRES PRODUCT USED PER ACRE (AVG) AAtrex 4L/ Atrazine 4L Atrazine Asana XL Esenvalerate Baythroid XL 541.1 43.19 oz 0.000991 oz 182.56 gal 1348.7 8.23 oz 0.000189 oz 86.69 gal B-cyfluthrin 312.8 2.79 oz 0.000064 oz 6.82 gal Cobalt Advanced chlorpyrifos 28.12%, Lambda-cyhalothrin 1.44% 126.0 31.67 oz 0.000727 oz 31.16 gal Coragen Chlorantraniliprole 804.1 5.53 oz 0.000127 oz 34.73 gal Dual II Magnum S-metolachlor 599.5 24.74 oz 0.000568 oz 115.87 gal Gramoxone Inteon Paraquat Dichloride 250.8 35.00 oz 0.000803 oz 68.58 gal Intrro/Micro-Tech Alachlor 484.1 46.09 oz 0.001058 oz 174.34 gal Lannate LV Methomyl 334.7 23.73 oz 0.000545 oz 62.06 gal Lorsban Advanced Chloropyrifos 793.9 31.88 oz 0.000732 oz 197.74 gal Mustang Max S-Cyano (3-phenoxyphnyl)methyl (+) cis/trans 3(2,2-dichloroethenyl)2,2 dimethylcyclopropane carboxylate 166.5 4.00 oz 0.000092 oz 5.20 gal 2.0 64.00 oz 0.001469 oz 1.00 gal 1237.3 7.52 oz 0.000173 oz 72.73 gal Pencap-M O-Dimethyl O-pnitrophenyl phosphorothioate 20.9% PRODUCT USED PER SQUARE FOOT (AVG) AMOUNT OF PRODUCT USED Permethrin Permethrin Princep 4L Simazine 308.2 52.94 oz 0.001215 oz 127.47 gal Tombstone Cyfluthrin 308.9 2.80 oz 0.000064 oz 6.76 gal Voliam Xpress Lambda-cyhalothrin 4.63% Chlorantraniliprole 9.26% 132.0 8.80 oz 0.000202 oz 9.07 gal Warrior with Zeon Technology Lambda-cyhalothrin 84.9 2.72 oz 0.000063 oz 1.81 gal Warrior II with Zeon Technology Lambda-cyhalothrin 121.2 1.62 oz 0.000037 oz 1.54 gal GRANULAR: COMMERCIAL NAME ACTIVE INGREDIENT TREATED ACRES Force 3G Tefluthrin 3% ACTIVE INGREDIENT USED PER ACRE (AVG) 318.00 0.1440 lbs 25 ACTIVE INGREDIENT USED PER SQUARE FOOT (AVG) 0.000003 lbs AMOUNT OF ACTIVE INGREDIENT USED 45.80 lbs 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI ACTIVE INGREDIENTS IN RESTRICTED USE PESTICIDES - COMMON HOUSEHOLD USAGE Many of the active ingredients listed in RUPs are also used in common household products. Here are some examples of their other uses. To use any product safely you must read the label and follow the instructions, just like farmers and ranchers do. ACTIVE INGREDIENT TARGET PEST FOR FARMERS & RANCHERS COMMON HOUSEHOLD USE W/ SAME ACTIVE INGREDIENTS Esfenvalerate Corn Earworm Aphid Inside the Home Leafhopper HOUSEHOLD BRAND NAMES Black Flag Home Invading Spider and Scorpion Killer B-Cyfluthrin Armyworm Lawn and Garden Bayer Advanced Aphid Weed Control Carpet Ant and Leafhopper Termite Plus Stink bugs Chlorantraniliprole Corn Earworm Thrips Armyworm S-metolachlor Grasses Lawn and Garden Insect Control Scotts Grub-Ex Turf, Nursery and Landscape Pennant Magnum Chloropyrifos Beet Armyworm Inside the Home Thrips Leafhoppers Hot Shot Maxattrax Roach bait Zeta-cypermethrin (2s) Talstar XTRA Granular Thrips Lawn and Garden (fire ants, fleas, ticks) Thrips Inside the Home Ortho Ant, Permethrin Leafhoppers Livestock Flea and Tick Spray Pet Care Simazine Grasses Pet Care Algae Destroyer for Freshwater Aquariums Lambda-cyhalothrin, Chlorantraniliprole Corn Earworm Lawn and Garden Armyworm Insect Control Cabbage Looper Leafhoppers Lambda-cyhalothrin Corn Earworm Lawn and Garden Armyworm Insect Control Aphid Squash Vine Borer Spectracide Triazicide Soil and Turf Insect Granules Shultz Supreme Green Summer Fertilizer with Insect Control Spectracide Wasp and Hornet Killer Cutworm Inside the Home (Pyrethrin) Tefluthrin Lesser Corn Raid Ant and Borer Roach Killer For more information about the safe use of products in your home, please go to the EPA educational web site: http://www.epa.gov/kidshometour/ 26 2013 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI PESTICIDES REFERENCES & RESOURCES U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA): http://www.epa.gov/pesticides/about/aboutus.htm NATIONAL PESTICIDE INFORMATION RETRIEVAL SYSTEM: http://state.ceris.purdue.edu/ CENTERS FOR DISEASE CONTROL AND PREVENTION: http://www.cdc.gov/niosh/topics/pesticides/ UNITED STATES DEPARTMENT OF AGRICULTURE, PESTICIDE DATA PROGRAM: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateC&navID =PesticideDataProgram&rightNav1=PesticideDataProgram&topNav=&leftNav=ScienceandLa boratories&page=PesticideDataProgram&resultType=&acct=pestcddataprg CROPLIFE INTERNATIONAL: http://www.croplife.org WORLD HEALTH ORGANIZATION, INTERNATIONAL PROGRAM ON CHEMICAL SAFETY: http://www.who.int/ipcs/assessment/public_health/pesticides/en/index.html UNITED NATIONS ENVIRONMENT PROGRAM, PESTICIDES: http://www.unep.org/hazardoussubstances/UNEPsWork/Pesticides/tabid/298/Default.aspx NATIONAL PESTICIDE INFORMATION CENTER: (a cooperative organization formed by the EPA and Oregon State University): http://npic.orst.edu/health/humhealth.html ROTTERDAM CONVENTION: http://www.pic.int/Implementation/Pesticides/tabid/1359/language/en-US/Default.aspx NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES: http://www.niehs.nih.gov/health/topics/agents/pesticides/ LICENSED PESTICIDE LISTING: http://hdoa.hawaii.gov/pi/pest/licensed-pesticides/ ELECTRONIC CODE OF FEDERAL REGULATIONS: http://www.ecfr.gov/cgi-bin/text-idx?sid=014c60635c167593daf0d7f57e8989c1&c=ecfr&t pl=/ecfrbrowse/Title40/40cfrv25_02.tpl COLLEGE OF TROPICAL AGRICULTURE AND HUMAN RESOURCES, UNIVERSITY OF HAWAII AT MANOA: http://pesticides.hawaii.edu/ 27 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI BIOTECHNOLOGY REFERENCES & RESOURCES GMO ANSWERS: www.gmoanswers.com U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA): www.epa.gov/pesticides/biopesticides/reg_of_biotech/eparegofbiotech.htm U.S. FOOD AND DRUG ADMINISTRATION (FDA): www.fda.gov/Food/FoodScienceResearch/Biotechnology/ucm346030.htm UNITED STATES DEPARTMENT OF AGRICULTURE (USDA): www.usda.gov/wps/portal/usda/usdahome?navid=BIOTECH FREQUENTLY ASKED QUESTIONS ABOUT AGRICULTURAL BIOTECHNOLOGY: www.usda.gov/wps/portal/usda/usdahome?contentid=BiotechnologyFAQs.xml&navid =AGRICULTURE HAWAII CROP IMPROVEMENT ASSOCIATION (HCIA): www.hciaonline.com AGBIOFORUM: www.agbioform.org THE AMERICAN ASSOCIATION FOR THE ADVANCEMENT OF SCIENCE: www.aaas.org/news/aaas-board-directors-legally-mandating-gm-food-labels-could%E2%80%9Cmislead-and-falsely-alarm THE AMERICAN COUNCIL ON SCIENCE AND HEALTH (ACSH): www.acsh.org/2000/09/biotechnology-and-food-second-edition/ AMERICAN MEDICAL ASSOCIATION: www.isaaa.org/kc/Publications/htm/articles/Position/ama.htm INTERNATIONAL FOOD INFORMATION COUNCIL: www.foodinsight.org/Fact_Sheet_Benefits_of_Food_Biotechnology WORLD HEALTH ORGANIZATION: www.who.int/foodsafety/publications/biotech/20questions/en/ GENETIC LITERACY PROJECT: www.geneticliteracyproject.org 28 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI MONSANTO REFERENCES & RESOURCES MONSANTO HAWAII: www.monsantohawaii.com MONSANTO COMPANY: www.monsanto.com MONSANTO BLOG: www.monsantoblog.com DISCOVER MONSANTO: www.discover.monsanto.com 29 2014 MONSANTO ANNUAL REPORT FOR THE COUNTY OF MAUI