Monsanto Company (MON), DuPont Fabros Technology, Inc. (DFT): The U.S. Government’s Favorite Agriculture Company

To some, lawsuits such as this one against poor farmers are morally reprehensible and to others the fact that the company is messing with the genetics of the food supply is cause for grave concern.

The reason Monsanto Company (NYSE:MON) and its peers even exist is to help farmers produce more crops from less land in order to feed the world’s growing population. There are other ways to invest in a solution to these agricultural issues; some investors might find a more palpable investment opportunity with fertilizer makers Agrium Inc. (USA) (NYSE:AGU) or Potash Corp./Saskatchewan (USA) (NYSE:POT).

Agrium Inc. (USA) (NYSE:AGU) is the largest global agriculture retailer while also being the world’s third-largest nitrogen producer. It’s also a leading fertilizer distributor and a world leader in controlled-release fertilizers. Finally, the company also is a low-cost potash producer.

While Agrium Inc. (USA) (NYSE:AGU) offers diversity, Potash Corp./Saskatchewan (USA) (NYSE:POT) offers focus. The company’s Canadian operations represent 20% of global capacity and the company has more potash than any other company in the world. That’s important because potash is a key nutrient in helping farmers produce more food on less land. Both companies are helping farmers do more with less, which like it or not is a driver behind Monsanto’s business as well.

No matter your view of the company, Monsanto continues its winning ways in court. With that, the company and its peers have locked up a large part of the commercial seed market. That’s proved to be a winning combination which has sent the company’s shares up over 1,000% in the past decade.

The article The U.S. Government’s Favorite Agriculture Company originally appeared on Fool.com is written by Matt DiLallo.

Matt DiLallo has the following options: Long Jan 2015 $70 Calls on Monsanto, Short Jan 2015 $70 Puts on Monsanto, and Short Jul 2013 $95 Calls on Monsanto. The Motley Fool has no position in any of the stocks mentioned.

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