A major impetus for MON’s acquisition of The Climate Corporation (#msg-92619988) is (IMO) to have a marketing edge of DuPont, Syngenta, and other seed competitors.
Whether or not global warming is actually affecting farmer’s yields to a material degree, a significant number of farmers believe that it is. Hence, it’s useful for MON to have another arrow in the quiver when its seed sales reps visit customers to discuss their orders for the next growing season.
MON can now say, “We’re addressing Global Warming through the advanced analytics furnished by The Climate Corporation, and no one else in the business can match that.” It ought to be a strong pitch.
DuPont’s (DD) agricultural seed unit announced on Tuesday that it signed a deal to have DTN/The Progressive Farmer provide weather and market data for its high-tech farming program. Along with rival Monsanto (MON), DuPont Pioneer is making a push into what is known as precision farming, which utilizes GPS and computer technology to help farmers maximize crop production.
MON acquired The Climate Corporation in Oct 2013 (#msg-92619988).