Monsanto (MON) Closer To Releasing Drought-Resistant Corn Seed

Seeking to go beyond saving farmers cost on pesticide inputs and controlling of weeds, Monsanto (NYSE:MON) is getting closer to releasing a corn seed which will make the crop more resistant to drought, which would no doubt be a big image-booster for the GMO industry.

The problem for Monsanto in this area has been to have the weather cooperate enough to engage in field tests which can confirm the value of the seed.

The target year to release the new seed is 2012, but since 2008 an ongoing number of wet summers has kept the company from successfully and convincingly showing its assertions are accurate about the corn seed.

How it works is the corn has a bacterium gene in it that allows the plant to survive during its flowering time on less water.

So far tests have been inconclusive. Some results have shown no improvement over current corn seed hybrids, while others have shown yields of 35 percent and higher over their hybrid counterparts, according to the USDA.

The Bill and Melinda Gates Foundation is funding the project which Monsanto has provided the genetic material for use in the testing.

Assuming it is proven successful, poor African farmers are expected to be provided with seed free of royalties.

Monsanto closed Friday at $66.33, dropping $0.26, or 0.39 percent.