The seed John Latham sells is not his grandfather’s corn – or even the first commercial hybrid that favorite Iowa son Henry A. Wallace developed in 1923 as he began what would become agriculture’s greatest revolution.

Latham Hi-Tech Hybrids, a Sheffield-based company he founded two years ago with his wife, Shannon; his brother, Chris; and his cousin Justin, is nudging its way into the seed corn industry and finding a place amid mergers and acquisitions that have put seed corn production mainly in the hands of a few big players like Monsanto Co., Pioneer Hi-Bred International Inc. and Syngenta AG.

Groundbreaking for its time because of its yield-increasing potential, Wallace’s hybrid is obsolete in a sophisticated seed industry that breeds plants that are more resistant to disease, pests and drought in addition to delivering higher yields. Before those genetic traits were bred into corn, farmers responded to weed, insect and disease problems with chemical applications.

“Farmers for years have been working with insecticides and herbicides, which are harmful to the skin and can cause cancer,” said John Latham, who learned the business at his family’s Latham Seed Co., which breeds, develops, produces and markets soybean seeds, and worked as an agronomist for Pioneer for two years after graduating from Iowa State University. “The great thing is, the farmer has to spray less herbicide and doesn’t have to spray at all for bugs like the corn borer and rootworm.”

The genetically modified seeds cost more than those without the special traits, but save farmers time and money in the long run because they don’t have to buy expensive chemicals or make as many trips across the field. “When the salespeople sit down and pencil it out to show our customers that it saves money, it actually does pencil out,” John Latham said.

“Corn is not a new crop,” added Shannon Latham, who handles marketing for the young company, “but high-tech corn really is.”

The company is licensed by Monsanto, which gives it access to the fruits of the agribusiness giant’s research. Monsanto’s YieldGard, for example, protects against corn rootworms, which weaken root systems and reduce yields. “We take a lot of pride in our relationship with Monsanto,” John Latham said. “Monsanto spends $2 million a day on research for the [YieldGard] technology, and for a company like us, having a strong relationship with Monsanto is a key.”

The relationship is hardly one-sided. All of the recent consolidation in the seed industry has contributed to confusion among farmers about which companies are licensed to sell what traits, and many are looking for a familiar face to help sort it all out.

“Monsanto knows that farmers like to do business with family-owned businesses,” John Latham said. “Some would rather do business directly with Monsanto, but one-third of their business is licensing out to companies like us. They’re looking to connect, and they know companies like Latham Hybrids have solid relationships.”

Latham corn contains traits developed by other companies as well, giving farmers a veritable smorgasbord to choose from. “We offer the very best in cutting-edge proven technology, but also the service and commitment of a local company invested in local farmers’ success,” he said.

The Lathams’ company appears to have a solid future. It wasn’t fully licensed until halfway through 2005, its first full year of operation, and it sold about $100,000 worth of seed. Sales reached $1 million for the sales year beginning in August 2005 and ending in July 2006, and the Lathams say they’re on track for sales of $3 million in the current sales year.

They’ve been able to build on parent Latham Seed Co.’s customer base, selling high-tech corn mainly in Iowa, Nebraska, South Dakota, Minnesota and Wisconsin.