Monsanto Company (NYSE: MON) today announced that its Board of Directors declared an increase in the quarterly dividend on its common shares from 10 cents per share to 12.5 cents per share, or an increase of 25 percent. The dividend is payable on Jan. 26, 2007, to shareowners of record on Jan. 5, 2007.

"Today's announcement underscores the company's confidence in the cash-generating capabilities of our business and our ongoing commitment to return value to our shareowners," said Terry Crews, Executive Vice President and Chief Financial Officer of Monsanto. "Our business remains focused on returning value through dividends, share repurchases and continued investment in our business."

The dividend relates to the company's first quarter of its 2007 fiscal year. Since Monsanto was spun off as an independent company in August 2002, its Board of Directors has raised the dividend five times by a cumulative total of more than 100 percent.

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