Monsanto Company (MON): Lindsay Corporation (LNN) Is Making It Rain

Irrigators like Lindsay Corporation (NYSE:LNN) and Valmont aren’t the only ones that will profit from helping farmers survive dry spells. Monsanto Company (NYSE:MON) is offering its new DroughtGuard drought-tolerant seeds in a limited introduction this season, and it’s also developing drought-tolerant seeds specifically for local regions in Africa, as part of a partnership with the Bill & Melinda Gates Foundation. The company expects the first seeds for Africa to be available in late 2013 and will donate the specially formulated drought-tolerant and insect-protection traits to the foundation.

Competitors DuPont Fabros Technology, Inc. (NYSE:DFT) and Syngenta AG (ADR) (NYSE:SYT) are also developing drought-tolerant seeds, with DuPont’s already on the market. These seeds are made using selective breeding techniques, which give them an edge in markets that have restrictions on genetically modified food.

The Foolish bottom line
It’s probably a good thing that Lindsay is trying to manage expectations after such a strong year. But with half the country in a drought already, I’m not expecting corn prices to go down anytime soon, and farmers still reeling from last year’s weather will probably be looking for any edge they can find if this year turns out to be as bad.

The article This Company Is Making It Rain originally appeared on Fool.com.

Fool contributor Jacob Roche and The Motley Fool have no position in any of the stocks mentioned.

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