The Burrill Report


Biotech seed giant Monsanto will pay about $930 million to acquire privately held Climate Corporation, a company that analyzes weather and soil patterns to help farmers predict crop yields to improve profits and manage risk.

The agricultural biotech company says data science is agriculture’s next major growth frontier, representing a potential $20 billion opportunity beyond Monsanto’s current core products.

The companies estimate that the majority of farmers have an untapped yield opportunity of up to 30 to 50 bushels per acre in their corn fields, and they believe that big data can help unlock that additional value for the farm.

The deal is one of the biggest to date for a company focused on Big Data as Monsanto moves to increase productivity by selling not just genetically modified seeds, but also an integrated system to improve farm management through access to data on natural forces that affect crop yields.

Climate Corporation was started in 2006 as Weatherbill by former Google employees who saw a market opportunity in offering insurance to cover weather-related events, which they expected would grow more severe due to the effects of climate change.

Since that time, the company has built an advanced technology platform combining local weather monitoring, agronomic data modeling, and high-resolution weather simulations to deliver a complete set of full-season monitoring, analytics and risk management products. One type of insurance it sells will pay farmers automatically for bad weather without them having to file a claim.

Monsanto expects the deal to expand both the near-term and long-term growth opportunities for its business and is already testing software to allow farmers to access relevant planting information while at work in the field.

Climate Corp. will maintain its headquarters in San Francisco and all of its employees. The acquisition is expected to close in the first quarter of 2014.




October 04, 2013
http://www.burrillreport.com/article-big_data_comes_to_the_farm.html