Monsanto 10-K 2005 FY Annual report

Exhibit 12

MONSANTO COMPANY
COMPUTATION OF EARNINGS TO FIXED CHARGES⁽¹⁾
(Dollars in millions)

							Eight Months
							Ended
	Year Ended Aug. 31,						Aug. 31,			Year Ended Dec. 31,
	2005			2004			2003			2002			2001			2000
EARNINGS:
Income (Loss) from Continuing Operations Before Income
Taxes and Cumulative Effect
of Accounting Change	$	261		$	394		$	(21	)	$	231		$	485		$	359
Add:
Fixed charges		136			112			71			105			147			272
Dividends from affiliated companies		0			0			0			1			1			1
Equity affiliate expense — net		31			36			26			43			41			34
Less:
Capitalized interest		(6	)		(7	)		(4	)		(8	)		(30	)		(37	)
Earnings available for fixed charges	$	422		$	535		$	72		$	372		$	644		$	629
FIXED CHARGES:
Interest expense(2)	$	115		$	91		$	57		$	81		$	99		$	214
Capitalized interest		6			7			4			8			30			37
Portion of rents representative of interest factor		15			14			10			16			18			21
Total Fixed Charges	$	136		$	112		$	71		$	105		$	147		$	272
Ratio of Earnings to Fixed Charges		3.10			4.78			1.01			3.54			4.38			2.31

⁽¹⁾ Monsanto has not paid any preference security dividends and, therefore, has not included the ratio of combined fixed charges and preference security dividends to earnings for the relevant periods.

⁽²⁾Includes amortization of deferred debt issuance costs.