American Seeds, Inc. (ASI), a Monsanto holding company, and its operating subsidiary Channel Bio Corp. (Channel) announced today that NC+ Hybrids, Inc. has agreed to join to the ASI team of strong brands, providing a further opportunity to bring growers new technology in the brands they prefer.

NC+ Hybrids, Inc. was recently formed through a reorganization of NC+ Hybrids Cooperative, which was established in Nebraska nearly 50 years ago as a farmer-owned co-operative.  NC+ Hybrids Cooperative has been one of the most successful seed companies in Nebraska and a respected seed source for the Western Corn Belt.

NC+ Hybrids, Inc. (NC+ Hybrids), based in Lincoln, Neb., joins the companies of Channel Bio Corp.  Like Channel’s other brands, NC+ Hybrids will be a distinct operating subsidiary of Channel and run as an independent brand.  Through Channel, President Don Funk and Chief Executive Officer Aline Funk currently manage three other successful and growing independent brands: Crow’s Hybrid Corn Company, Midwest Seed Genetics, Inc. and Wilson Seeds as a part of Monsanto’s ASI subsidiary formed in November 2004.

“The NC+ Hybrids business has a great reputation in the marketplace for top-quality seed products, satisfying customer needs, and for their attention to detail,” said Don Funk.  “Like its Channel teammates, NC+ Hybrids is a company made up of seedsmen and women who are clearly focused on taking care of customers.  We each bring unique strengths, and we’re very excited about working together and about the new technology and genetic innovations that we plan to bring to our customers.”

With the addition of NC+ Hybrids to the Channel family, the combined brands will offer growers leading germplasm and biotechnology traits, becoming one of the largest seed companies in the Central, Western and Southwestern growing areas.  The brands will continue to have a strong presence in Nebraska, a state that ranks among the national leaders in not only corn production, but in adoption of new corn technology.  In its 2004 acreage report, the U.S. Department of Agriculture estimated that more than 60 percent of corn grown in Nebraska includes one or more biotechnology traits.

The addition of NC+ Hybrids to the Channel family reinforces both organizations’ commitment to their customers.

 “NC+ Hybrids and Channel share many of the same values.  We both encourage a strong customer focus, reward independent thinking and have built our businesses on providing the leading genetics and traits for our customers,” said Aline Funk.  “We’re also both companies that are committed to making the best long-term strategic moves for our customers, and the ASI model allows us to maintain the brand identity and the values and approach to the market that have driven our businesses’ successes through the years.”

“This has been a very well thought out business decision for the NC+ Hybrids Cooperative grower-owners,” said Ron Vieselmeyer, NC+ Hybrids Cooperative’s chairman of the board of directors.  “Some of our founding families now have third-generation sons or daughters involved.  We believe strongly that our agreement with ASI is in the very best interests of our customers, our dealers and our employees.  The seed business has changed dramatically in the last few years, influenced by many factors including fewer but larger operators, traits and technology, and consolidation.  We wanted to make sure that the NC+ Hybrids brand would continue as a mark of quality seed and quality people for many, many years to come and that we could continue to not only meet but exceed the needs of our customers. This agreement allows that to happen.”

NC+ Hybrids Adds to ASI’s Focus on Bringing Technology to Growers

Monsanto Company formed ASI last fall as a new business model to serve farmers through regional, customer-focused companies.  ASI provides a vehicle for Monsanto to make equity investments in regional seed business, which – like Channel and NC+ Hybrids – are incorporated and run as autonomous subsidiaries, according to Dennis Plummer, president of ASI.

“The ASI model is one that we believe can help connect regional seed companies to innovation in Monsanto’s pipeline to accelerate their growth and provide more options for growers,” said Dennis Plummer.  “The addition of NC+ Hybrids to Channel is a great opportunity to serve more farmers and is the logical continuation of our strategy to add regional seed companies that can build this new model and accelerate growth in targeted areas.”

Channel Bio Corp. researches, develops and sells corn and soybean seed in North America.  Channel is one of the ten largest companies in the industry and one of the industry’s fastest growing.  Channel is the cornerstone business of American Seeds Inc., a new holding company Monsanto established in November 2004 to support regional seed companies with capital investments. 

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