Monsanto sees U.S. Drought as an Opportunity to Test Corn Yields
By Amanda Brodhagen, Farms.com
The drought that is plaguing across the Midwestern U.S. has many farmers in the region on edge. But as the old saying goes, in every crisis there is opportunity. Monsanto Co. is capitalizing on the less than desirable growing conditions to demonstrate that their seeds can withstand drought conditions creating a comparison between them and their competitors. Monsanto seeks to win over new customers who may see the company’s seeds outperforming their competitors.
“Our genetics tend to do well in warm, dry conditions” says Hugh Grant, Chief Executive Officer for Monsanto Co.
The returns are already starting to trickle in. Monsanto’s third-quarter earnings climbed 35 percent, which surpassed predictions as corn seed rose to a record high. Since drought conditions became evident corn futures have surged 28 percent since June 15.The drought won’t impede on Monsanto’s advancement as it plans to invest in more tractor technology that uses data on seed varieties and soil conditions to boost yields. One can only hope that both farmers and agriculture companies will take the drought situation and turn it into an opportunity to be innovative. What else do they have to loose?