"The reason I like the seed business is because Dow and DuPont (DD - Get Report) are combining and then they are spinning off the number one seed play," said Cramer, TheStreet's founder and manager of the Action Alerts PLUS portfolio, which owns DOW.
He added that if Dow and DuPont are able to cross regulatory hurdles and finally merge, investors "are going to get a real winner."
"When you chase Monsanto what you're doing is chasing news reports about what Bayer is doing," Cramer said. "I can't get into their heads. I do like Dow and DuPont because you can get into their heads.
Cramer's issues with Monsanto stem from lower-than-predicted second quarter earnings.
"I never recommend a stock on a takeover basis if I'm concerned about the earnings in the short term," Cramer said. "I'm concerned about Monsanto's earnings."
On April 6, Monsanto reported earnings per share of $2.42, two cents below consensus expectations. Despite these earnings, Monsanto's trading price jumped 9% Thursday to $98.43 per share following the news of a potential deal.
Cramer said agriculture is in a trough right now.
"If you listen to conference calls, you know feed is low," Cramer said. "I do believe seed prices can start going up."
Monsanto, which has a market cap of $43.20 billion declined comment on speculation regarding a potential deal.
DuPont, which has a market cap of $56.11 billion, was trading at $64.24 Thursday.Dow, which has a market cap of $57.66 billion, was trading at $51.35 per share Thursday.