Monsanto and DuPont have reached an agreement for the weed killer dicamba in the U.S. and Canada.
The terms of the deal were not disclosed, but Monsanto will supply its chemicals and farm seeds with the herbicide, which will be sold as DuPont FeXepan herbicide plus VaporGrip Technology.
The chemicals are intended for use with Monsanto’s Roundup Ready 2 XTend soybeans, a genetically modified variety able to withstand dicamba and glyphosate herbicides.
In 2013, DuPont signed a licensing agreement to incorporate Monsanto’s XTend trait in its seeds. Glyphosate-tolerant crops on American farms have increased the amount of weeds resistant to the herbicide, and farmers are seeking other crop varieties.
Monsanto has invested over $1 billion in a dicamba production facility in Luling, La., and anticipates growing demand for the weed killer. The XTend soybean trait was planted on 1 million acres in the U.S. this year, and Monsanto expects much more will be planted in the future.
The deal comes during a period of consolidation in the chemicals and farm seeds industry that has been dominated for many years by six companies.
Read more: St. Louis Post-Dispatch