Monsanto to raise 2012 corn seed prices 5% to 10% on average

Monsanto Co., the world's biggest seed company, said prices for its DeKalb brand of corn seeds will rise next year by an average of 5 percent to 10 percent because of improved performance and higher production costs.

The price increase reflects higher-yielding genetics and more sales of biotechnology, including the newest insecticide- producing crops, Executive Vice President Brett Begemann said today on a conference call. Monsanto also needs to recoup payments to seed growers, which are rising with corn prices, he said.

Higher prices will help the St. Louis-based company achieve its goal of boosting earnings 13 percent to 17 percent a year, Begemann said. Monsanto gained share in U.S. corn this year and didn't lose share in soybeans, he said. The company hasn't gained in those markets in three years. Monsanto this year lowered prices after farmers increased purchases from DuPont Co.'s Pioneer unit.

Monsanto will have enough seed for next year after overcoming drought and other weather issues through contracts with growers in a wide geographic area, Begemann said. It also plans to raise seed in Latin America, he said. The higher cost of production is within the company's assumptions, he said.