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                                                                  EXHIBIT 10.17

                       2003 ANNUAL INCENTIVE PLAN SUMMARY
           as approved by the People and Compensation Committee of the
             Board of Directors of Monsanto Company on Dec. 17, 2002

GENERAL:
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o    The 2003 Annual Incentive Plan will cover the performance period January 1
     through December 31, 2003

     >>    Any payout as determined by the Board People and Compensation
           Committee is made in March 2004

o    Eligibility includes regular employees who do not participate in a local
     sales or manufacturing annual incentive plan

o    Funding of the Plan is determined by the Company's attainment of certain
     financial goals and the Committee's determination that such attainment
     satisfies certain subjective performance criteria as determined by the
     Committee. In addition, regardless of the attainment of any one or more of
     the Plan's financial goals, the Committee, in its sole discretion, shall
     determine whether the incentive pool should be funded and the amount of
     such funding, if any

o    A Target Annual Incentive Opportunity, expressed as a percentage of base
     pay, is established for each participant with respect to the performance
     year

o    Various performance levels are approved by the Committee with a payout
     level associated with each level of performance:

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                                                    POTENTIAL PAYOUT
       PERFORMANCE LEVEL                      AS A PERCENT OF TARGET ANNUAL
                                                 INCENTIVE OPPORTUNITY
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      Threshold                                            20%

      Budget                                              100%

      Outstanding                                         200%
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FINANCIAL GOALS:
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o    The Committee approves Threshold, Budget and Outstanding levels of
     performance for 2003 relating to:

     >>  Sales Growth               (10% weighting)
     >>  Earnings per Share         (50% weighting)
     >>  Cash Flow                  (40% weighting)

o    Sales Growth, Earnings Per Share and Cash Flow are determined in accordance
     with the "Definition of Performance Metrics" attached

o    Following the end of the performance year, the Committee evaluates Company
     performance for the year relative to the financial goals

     >>  The Committee may consider subjective criteria in determining
         whether or not any financial goal has been attained and the amount
         of incentive pool funding with respect to any financial goal

     >>  The Committee applies the "special considerations" described below in
         determining funding of the incentive pool

SPECIAL CONSIDERATIONS REGARDING ATTAINMENT OF FINANCIAL GOALS AND FUNDING OF
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INCENTIVE POOL:
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o    The incentive pool will be funded at no less than 20% of Budget level
     funding in the event Monsanto pays dividends with respect to each quarter
     during the performance year

o    The Company must meet the Threshold level of performance with respect to
     Earnings Per Share (considering the financial goal metrics for Earnings Per
     Share and other subjective performance factors) in order for there to be
     any funding of the incentive pool above the 20% of Budget funding level

o    If the Company exceeds the Outstanding level of performance with respect to
     any one or more financial goals, the incentive pool may be funded above the
     Outstanding level

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FUNDING OF INCENTIVE POOL AND PAYOUT OF AWARDS:
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o    At the beginning of the performance year, a target incentive award pool,
     equal to the sum of base salaries of all Plan participants multiplied by
     their respective Target Annual Incentive Opportunities, is calculated

o    After the end of the performance year, the Committee determines the actual
     funding of the incentive pool for the Plan based upon the Company's
     performance for the year, measured against the Plan's financial goals and
     other subjective performance factors

     >>  The Committee may, in its judgment, consider subjective factors,
         in determining to what extent, if any, the incentive pool will be
         funded

o    The amount of money available for awards (i.e. the funding of the incentive
     pool) is determined by multiplying the value of the targeted incentive
     award pool by the percentage of overall Company performance achieved, as
     determined by the Committee

     >>  In the event Monsanto does not pay dividends with respect to any
         quarter of the performance year, the incentive pool will not fund
         and no payout will occur

     >>  In the event Monsanto does pay dividends with respect to each
         quarter of the performance year, but the Company does not attain
         the Threshold level of performance with respect to the Earnings
         Per Share financial goal (considering the financial goal metrics
         for Earnings Per Share and other subjective performance factors),
         the incentive pool may not fund at greater than 20% of Budget
         level funding

     >>  If performance exceeds the Outstanding level of performance, the
         actual pool (i.e. available funding) may exceed the Outstanding
         level funding

o    Individual awards are determined based on team and individual
     performance

     >>  People Managers: 50% of award based on development of people,
         team and personal development; 50% based on business results

     >>  Non-managers: 75% of award based on business results; 25% on
         personal development

     o   The payment and amount of any award are subject to the sole discretion
         of the Committee or its delegate

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EVENTS AFFECTING PAYOUT OF INDIVIDUAL ANNUAL INCENTIVES:
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     o   If an employee commences employment during the performance year, he/she
         is eligible for an award reflecting actual months of participation to
         the nearest whole month

     o   If a participant's Target Annual Incentive Opportunity changes during
         the performance year, he/she is eligible for an award reflecting the
         Target Annual Incentive Opportunity at year-end

     o   If a participant's pay changes during the year, any incentive award
         received is based on base pay at year-end

     o   If a participant transfers within the Company, his/her award will come
         from the unit in which he/she is working at year-end, but performance
         for the whole year will be considered

     o   A participant who:

         >>   voluntarily resigns may be considered for an award only if the
              resignation occurs after the end of the year

         >>   involuntarily separates without cause, is eligible for an award
              reflecting participation to the nearest whole month if he/she has
              already worked more than three months in the year

         >>   retires, dies, or becomes permanently disabled, is eligible for an
              award reflecting actual participation to the nearest whole month.
              (Retirement is defined as termination at or after age 50.)

         >>   terminates for cause, forfeits all rights to any award

              o   Any award will be paid in March following the participant's
                  separation

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