UPDATE 1-Biotech leader Monsanto jumps back into wheat

* Invests in developing new technologies for wheat with $45 million acquisition of Westbred business

* Says does not expect deal to add to earnings until the middle to latter part of the next decade.

* Company to focus on drought tolerance, nitrogen use and higher yield for wheat farmers.

* Monsanto shares near flat in premarket trade

By Carey Gillam

KANSAS CITY, July 14 (Reuters) - Five years after shelving a controversial biotech wheat product, Monsanto Co (MON.N) said on Tuesday it is jumping back into the wheat business, paying $45 million to acquire WestBred LLC, a specialist in wheat germplasm.

Monsanto said in the near-term, the transaction will allow Montana-based WestBred to apply Monsanto breeding tools to develop higher-yielding varieties for U.S. wheat farmers.

And in the future, WestBred's wheat germplasm will serve as the foundation for the development of biotech traits that make wheat plants more drought tolerant, more efficient in the use of nitrogen and higher yielding.

Monsanto, which is known for its market strength in development of genetically modified soybeans, corn, cotton and other crops, walked away from development of a "Roundup Ready" herbicide-tolerant spring wheat product in early 2004.