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                                                                Exhibit (10)(18)

                           2001 ANNUAL INCENTIVE PLAN
                                     SUMMARY

                  GENERAL:


                  o 2001 Plan will cover the performance period January 1 -
                  December 31, 2001 (March 2002 payout)

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

                  o A Target incentive opportunity level will be established for
                  each participant, expressed as percentage of base pay.

                       o Target awards range from 7.5% of pay for entry level
                       roles to 70% of pay for the CEO

                  o Various performance levels are approved by the Board
                  Committee with a payout level associated with each level of
                  performance:
                  <TABLE>
                  <CAPTION>
                  -----------------------------------------------------------------------------
                                                              POTENTIAL PAYOUT
                                                     AS A PERCENT OF TARGET OPPORTUNITY
                                                     ----------------------------------
                    PERFORMANCE LEVEL                  OFFICERS          NON-OFFICERS
                  -----------------------------------------------------------------------------
                  <S>                                             <C>                      <C>
                    Threshold                                     50%                      50%

                    Target                              75%                       100%

                    Above Target                       100%                       150%

                    Outstanding                        200%                       200%
                  -----------------------------------------------------------------------------
                  </TABLE>

                  FINANCIAL GOALS:

                  o The Board People Committee approves Threshold, Target, Above
                  Target and Outstanding levels of performance for 2001 relating
                  to:

                       o Sales Growth (25% weighting)
                       o Earnings per Share (50% weighting)
                       o Cash Flow (25% weighting)


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                  o Following the end of the performance year, the Board People
                  Committee evaluates attainment of pre-established goals
                  relative to Target

                  o Funding and Payout of Awards

                       o The Board People Committee will determine the funding
                       for the plan based on performance against the financial
                       goals. The Committee may, in its judgment, adjust this
                       amount

                       o The available funding is then allocated within Monsanto
                       based on Goal achievement

                       o Individual awards are based on team and individual
                       performance

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

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

                  INCENTIVE AWARD POOL AVAILABLE FOR AWARDS

                  o A "Target incentive award pool" equal to the sum of base
                  salaries of all plan participants multiplied by their Target
                  annual incentive opportunities is established

                  o The amount of money available for awards is determined by
                  multiplying the Target pool by the percent of Target
                  performance achieved. If performance exceeds outstanding, the
                  pool may exceed outstanding

                  o The Internal People Committee allocates the available
                  funding among the different business areas based on their
                  annual results. The total amount of awards cannot exceed the
                  amount of the annual incentive award pool

                  EVENTS AFFECTING PAYOUT OF INDIVIDUAL ANNUAL INCENTIVES

                  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 incentive opportunity changes during the
                  performance year, he/she is eligible for an award reflecting
                  the incentive opportunity at year-end


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                  o If a participant's pay increases during the performance year
                  as a result of change in position or increase in
                  responsibilities, 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:

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

                       o 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

                       o 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.)

                       o terminates for cause, forfeits all rights to any award

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




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