Arcadia Biosciences and Monsanto Company (NYSE: MON) today announced a licensing agreement for the development and commercialization of Arcadia's nitrogen use efficiency (NUE) technology in canola.

Under the agreement, Monsanto gives Arcadia an upfront payment, as well as milestone payments and a royalty rate structure in exchange for global licensing rights. Additional financial terms of the agreement were not disclosed.

Field trials conducted by Arcadia during five growing seasons in various U.S. regions demonstrated that NUE canola achieved higher yields than the control canola variety in each trial using as much as two-thirds less nitrogen fertilizer. These results indicate the possibility of increasing farm yields and profitability and decreasing the amount of nitrogen that enters ground and surface waters.

"Monsanto is committed to remaining a leader in developing important agricultural traits that provide benefits to farmers," said Steve Padgette, Monsanto's vice president of biotechnology. "Improving yields is a key component of that commitment and we're excited about the possibilities that Arcadia's technology can deliver toward that goal in canola."

"Plants typically absorb less than half of the nitrogen fertilizer that is applied. As a result, growers only realize about half of the value of their fertilizer input investment," said Eric Rey, president of Arcadia. "Our license to Monsanto for use in canola is aligned with our strategy to make NUE technology as broadly available as possible to growers. We believe that reducing the amount of fertilizer needed to produce crops can create a significant economic advantage for farmers and will also greatly benefit the environment."

Based in Davis, California, Arcadia Biosciences is an agricultural biotechnology company focused on the development of agricultural products that improve the environment and enhance human health.

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