Monsanto Company (NYSE: MON) today announced that its Board of Directors declared an increase in the quarterly dividend on its common shares from 17 cents per share to 20 cents per share, or an increase of 18 percent. The dividend is payable on Jan. 27, 2006, to shareowners of record on Jan. 6, 2006.

The dividend increase is effective for the company’s first quarter of its 2006 fiscal year. Since Monsanto was spun off as independent company in August 2002, its Board of Directors has raised the dividend four times by a cumulative total of 67 percent.

“This dividend increase continues the company’s ongoing commitment to return value to our shareowners,” said Terry Crews, Executive Vice President and Chief Financial Officer of Monsanto. “Furthermore, it underscores the board’s confidence in the company’s strong cash-generating capabilities and its belief in our capacity to meet the growth objectives we’ve outlined for the business.”

Today’s announcement follows on the company’s recently announced share repurchase program. On Oct. 26, 2005, Monsanto Company announced that its Board of Directors had authorized the purchase of up to $800 million of the company’s common stock over a four-year period.

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.