Monsanto pays South African farmers over crop failure

Monsanto has recorded a US$42 million pre-tax charge because of problems with corn grown in South Africa.

The three corn hybrids that failed in South Africa, appeared to produce less than optimal amounts of pollen, said Monsanto vice president for investor relations, Scarlett Foster.

The compensation amounted to about five cents a share after tax.

Monsanto spokesman Lee Quarles said the problem arose during the 2007 seed production season when a breeding technique went awry.

Quarles said the company has reviewed the method and is making the necessary amendments.