Midwest floods might not push up corn prices as much as was feared, according to a report released by the US Department of Agriculture on the damage to crops caused by recent Midwest flooding.

According to the report, US farmers will harvest almost 9% less corn this year than last. Offsetting the flood damage is the more than 1 million additional acres of corn planted in March.

Corn futures, which were about $7.60 last week, dropped to about $7.25 yesterday on the Chicago Board of Trade.

“The World Bank estimates that worldwide food prices have risen a scorching 83% over the past three years,” says Jason Simpkins in Money Morning. “And the president of the World Bank, Robert B. Zoellick, estimates that the spike in food prices could push 100 million people in low-income countries deeper into poverty, as food costs cut into already meager earnings.

“The biotech industry claims it can help. Research by the U.S. Department of Agriculture found that one variety of genetically modified corn yielded 9% more than conventional corn. The International Service for the Acquisition of Agri-Biotech Applications, which encourages developing countries to adopt GM technology, says GM cotton has increased yields by 50% in India.”

Is it time to consider investing in so-called “Frankenfoods?”

Jason thinks it may be….

Monsanto Co. (MON), whose insect resistant crops have gained widespread popularity among U.S. farmers, has pledged to double yields on corn and soy by 2030.

Genetically modified crops have become so popular in countries like the United States that they are actually cheaper and more readily available than their non-GM counterparts.

“We cannot get hold of non-GM corn nowadays,” Yoon Chang-gyu, director of the Korean Corn Processing Industry Association, told the International Herald Tribune.

According to Yoon, non-modified corn costs Korean millers about $450 per metric ton, up from $143 a metric ton in 2006. Genetically engineered corn costs about $350 per metric ton.

In 2007, 75% of the corn grown in the United States was genetically modified, up from 40% in 2003.

MON’s profit jumped 42% in 3Q thanks to a strong performance by its controversial herbicide Roundup. The company has upped its earnings guidance for the year.