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Monsanto Investing $975M for Dicamba Pipeline Expansion

Monsanto’s Board of Directors has approved a capital investment of $975 million into expanding the company’s Luling, Louisiana manufacturing site. The three-year expansion project is expected to strengthen the company’s integrated solutions platform and result in a dicamba pipeline that will satisfy up to 35% of demand for dicamba - the key ingredient in Monsanto’s Roundup Ready Xtend Crop System.

Over the next ten years, Monsanto is expecting to launch its RoundUp Ready Xtend platform across the U.S., Brazil, the greater Latin America South, and other major global agricultural regions. However, to accomplish this in the most efficient and successful way, a strong supply pipeline of dicamba is critical to meeting demand from farmers representing a potential 250 million acres throughout the Americas.

In exchange for such a substantial investment, the state of Louisiana has granted Monsanto a performance-based Modernization Tax Credit of $5 million, and a $1.7 million performance-based Economic Development Award Program grant designed to reimburse the company for costs associated with rail and electrical overhead connected with the expansion. It is also understood that Monsanto will use the state’s Louisiana Quality Jobs and Industrial Tax Exemption programs, reports The Advocate.

“Agribusiness and chemistry represent two of the most important business sectors in our state, and this major manufacturing investment by Monsanto strengthens each of these key industries,” said Governor John Bel Edwards. “We’re encouraged by Monsanto’s vote of confidence in Louisiana as a great place to do business and a vital part of its manufacturing operations.”

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