We are days away from guidance from the federal government on how it will calculate the carbon intensity of corn production for ethanol and how that will impact farmers, ethanol producers and the economy at large. Kevin Summers, North American Carbon Sustainability Lead for Trimble, joins us to talk about the Wild West that is the current carbon market structure and Trimble’s Connected Climate Exchange as a voice of reason platform in it all.
Originally launched in Canada, Kevin talks through CCE’s 5 million tons of ag carbon offsets, the $50 million dollars for Canadian farmers and how Trimble plans to roll this program out in the United States. From data security to education, he also talks about the challenges of carbon markets today and their potential for growers and CPG companies in the future.
In the launch of Connected Climate Exchange, what has Trimble learned? Kevin says it’s about keeping the grower first in mind, connecting sellers and buyers in the marketplace and continuing to tell the story of its measured impact on the climate.
AgriNovus Indiana announced today that Dr. Karen Plaut, executive vice president of research at Purdue University, will serve as chair of the organization’s board of directors.
The board also unanimously approved Trent Torrance, chief operating officer at United Animal Health, as its vice chair and the appointment of Courtney Kingery, CEO of Indiana Corn Marketing Council and Indiana Soybean Alliance, to the executive committee. Dr. Jose Simas, executive vice president, U.S. Farm Animal Business at Elanco was approved as a succession to replace an outgoing director.
“Indiana’s agbioscience economy continues to record growth and strength thanks to the direction and support of the AgriNovus board of directors,” said Mitch Frazier, president and CEO of AgriNovus Indiana. “The addition of these experts to our Board brings even more leadership and industry context to our team as we work together to build the agbioscience economy of the future.”
Plaut is the executive vice president for research at Purdue University. She previously served as dean of Purdue’s College of Agriculture, overseeing academic programs within the college, the Indiana Agricultural Experiment Station, the Purdue Cooperative Extension Service and several state regulatory services. Plaut was also the senior associate dean for Research and Faculty Affairs in Purdue’s College of Agriculture and held faculty positions at the University of Vermont and Michigan State University, serving as the chair of the Department of Animal Sciences at both institutions. She spent a few years working with NASA as lead scientist for the Space Station Biological Research Project for the International Space Station. Plaut holds a bachelor’s degree in animal science from the University of Vermont, a master’s degree in animal nutrition from Penn State University and a doctorate in animal science from Cornell University. Her postdoctoral studies were completed at the National Cancer Institute at the National Institute of Health. Plaut was named a Fellow of the American Dairy Science Association in 2020.
Torrance is the chief operating officer and is a member of the board of directors for United Animal Health, a Sheridan, Ind.-based company focused on providing solutions for animal nutrition and health. He has served in various roles for the company since 2001, including research and development, project management and corporate leadership. Torrance holds a bachelor’s degree in animal science from Western Illinois University and a master’s in animal science from the University of Missouri. He also serves on the board of directors for United Animal Health’s Joint Venture in China, Shandong United Nutrition.
Kingery serves as the CEO of Indiana Corn Marketing Council and Indiana Soybean Alliance, leading the state’s corn and soybean checkoff programs to build domestic and global demand for those crops. She previously worked as global director of health and wellness innovation at Tate and Lyle and was a grain trader and marketing manager for oilseeds and food ingredients for ADM. Kingery has a bachelor’s degree in economics from Hanover College with a master’s of business administration from Kuztown University.
Simas is executive vice president of U.S. Farm Animal at Elanco, bringing more than 20 years of leadership experience in commercial, marketing, R&D and regulatory roles. Previously, he served as president of Trouw Nutrition USA and has also served in key roles within Elanco’s business, including senior director of Latin America and Global Aquaculture, senior director of U.S. Beef Business and area director for Central, Eastern Europe, North Africa and the Middle East. Simas received a bachelor’s degree from the Federal University of Lavras in Brazil. He also holds a master’s degree and a doctorate in Animal Nutrition and Physiology from the University of Arizona, as well as a post doctorate from the University of Sao Paulo, Brazil.
The AgriNovus Indiana board of directors is comprised of leaders from industry, academia and government. All members are listed online at www.AgriNovusIndiana.com/Board.
Key Takeaways:
Improving access to timely agronomic insights for the entire 2024 crop season.
Complementary technologies will make it easier and more streamlined for farmers.
Support farmers and ag retailers with data-driven decision-making.
Intelinair, the makers of AGMRI and a leading ag data analytics company, announced today it has extended its digital connectivity options for farmers by integrating its digital platform, AGMRI, with CNH’s global operating platform.
Through this integration, farmer customers can easily export field boundary data, as applied, and yield data to AGMRI. Platform users that will have access include:
CNH brands Case IH, through its AFS Connect platform
New Holland, with its MyPLM Connect platform
As part of the collaboration, CNH customers will receive direct access to AGMRI’s agronomic full-season insights and analytics at the field level in a single platform. AGMRI Insights monitors and tracks in-season agronomic insights for emergence, weeds, crop health, and variable dry down. AGMRI Analyze monitors nine common yield-limited factors, enabling farmers to pinpoint and understand potential issues that may have impacted their yield during the season. This data-driven approach helps farmers make informed decisions for the upcoming crop season, ultimately contributing to improved efficiency and yield potential.
“Increasing connectivity options for farmers provides more ways to use technology to help improve efficiency on the farm and protect yield potential,” said Kevin Krieg, Director of Business Development at Intelinair. “This new connection is one more way farmers can efficiently get insights to make real-time data-driven decisions and inform the next year’s crop plan.”
Dan Danford, Precision Technology Partner Manager from CNH, commented, “By establishing connections with important partners like Intelinair, we aim to drive interoperability between the various systems and services our customers use to maximize the value of their data and actions in the field.”
“This data shows that agriculture remains a pillar of the Indiana economy with the total value of agriculture production growing 62% over the five year period,” said Lt. Gov. Suzanne Crouch, Secretary of Agriculture and Rural Development. “The Census of Agriculture is all encompassing, and it allows us to compare ourselves to fellow states, whether that is in ranking of commodities, prices, demographics and more.”
The Census of Agriculture is a complete count of U.S. farms and ranches and the people who operate them. Even small plots of land – whether rural or urban – growing fruit, vegetables or some food animals count if $1,000 or more of such products were raised and sold, or normally would have been sold, during the Census year. The Census of Agriculture, taken only once every five years, looks at land use and ownership, operator characteristics, production practices, income and expenditures.
“We are thankful for all the farmers who completed the survey, this data allows our department to provide accurate and reliable information and data to Hoosiers, to farmers and to decision makers,” said Don Lamb, Indiana State Department of Agriculture director. “The data comes out every five years and its always exciting to see our statewide growth.”
Data from the census shapes programs and initiatives that benefit Indiana farmers, expands access to resources that help farmers and help farmers diversify into new markets, including local and regional food systems, specialty crops and organic production.
Number ten producing state for maple syrup and hemp for floral (CBD and other cannabinoid usage)
Total Value of Agricultural Production over $18 billion at 65% crops and 35% livestock (up from $11.1 million in 2017, a 64% increase)
Land data:
Number of farms is 53,599
Land in farms 14.6 million acres
Average farm size 272 acres
Top five Indiana counties with the largest number of farms: LaGrange, Elkhart, Allen, Adams & Daviess
Top five Indiana counties with the highest value of agriculture production: Jay, Jasper, Elkhart, LaGrange, Dubois
Demographics:
Indiana has 94,282 farmers (30,691 female and 63,321 male)
Average age of the Hoosier Farmer is 56 years old
Young Producers (those under 35 years old) total 11,058 with the average age as 28.7 years old
New and Beginning farmers (those with less than 10 years experience) total 26,428 with the average age as 43.2 years old
Producers with military service totals 6,621
Additional USDA Ag Census data will be coming out throughout the year, including the market value of ag products sold, state and county profiles, race, ethnicity and gender profiles, watershed information, specialty crops, aquaculture and more. See all those at nass.usda.gov.
Transaction reinforces Elanco’s commitment to most significant value creation opportunities in pet health and livestock sustainability
Enables company to accelerate debt paydown by $1.05B to $1.1B
Elanco Animal Health Incorporated (NYSE: ELAN) today announced it has entered into an agreement to sell its aqua business to Merck Animal Health (NYSE: MRK) for approximately $1.3 billion in cash, which represents approximately 7.4x the estimated 2023 revenue of the Elanco aqua business.
“A strategic decision resulting from a disciplined process over the last year, the sale of the aqua business allows us to prioritize our investments in larger markets with greater earnings potential over the medium and long term, while creating balance sheet flexibility,” said Jeff Simmons, President and CEO of Elanco Animal Health. “We are focused on delivering consistent high impact innovation and continue to have confidence in our late-stage pipeline with six potential blockbuster products expected in the U.S. market by 2025. Further, we are advancing our next wave of development projects, which we believe will contribute meaningful growth for Elanco through the second half of the decade. Importantly, the proceeds from this transaction combined with improved free cash flow from the business, will accelerate deleveraging with net debt to adjusted EBITDA expected in the high-3x to low-4x range by the end of 2025.”
The transaction reinforces Elanco’s focus and investment on its most significant value creation opportunities, notably in pet health and livestock sustainability. In addition to the expected U.S. approvals in the first half of 2024 for Credelio Quattro™, Zenrelia™ and Bovaer®, Elanco is pursuing a portfolio of clinical development projects that the company expects to have differentiated profiles and blockbuster potential in significant markets with meaningful growth and earnings potential. Elanco’s targeted areas of focus include next generation products for pet parasiticides, dermatology and pain, as well as livestock sustainability. Additionally, the company is opportunistically pursuing platform-aligned targets, such as monoclonal antibodies, and other major emerging spaces of high unmet need.
“We are excited for the acquisition of Elanco’s aqua products, solutions as well as the capabilities and expertise the team brings to our business,” said Rick DeLuca, president, Merck Animal Health. “We believe this acquisition, coupled with our commercial and scientific prowess, will deliver enhanced benefits for our aqua customers. The addition of this innovative portfolio of cold water and warm water aqua products across vaccines, anti-parasitic treatments, water supplements and nutrition, will establish Merck Animal Health as a leader in aqua.”
Transaction Details
Elanco’s aqua business includes products across both warm-water and cold-water species, generating an estimated $175 million in revenue and approximately $92 million in adjusted EBITDA, excluding the allocation of corporate costs, based on 2023 preliminary results. The divestiture includes current marketed brands, aqua R&D projects, the transfer of manufacturing sites in Prince Edward Island, Canada and Dong Nai, Vietnam and approximately 280 commercial and manufacturing employees.
Upon closing of the transaction, Elanco plans to use the expected $1.05 billion to $1.1 billion of after-tax cash proceeds to pay down a portion of the Term Loan B debt. Elanco’s preliminary full year 2023 results, which do not include the effect of the sale of the aqua business, project net debt to adjusted EBITDA to be slightly below the midpoint of the company’s previous guidance range (5.5x to 5.8x). Giving pro forma effect to the transaction for the full year 2023, including the expected debt paydown and excluding the EBITDA associated with the aqua business, the company estimates the net leverage ratio would have been 0.6x to 0.7x lower, at or slightly below 5.0x. In 2024, with the anticipated debt paydown resulting from the transaction and from cash generated by the base business, the company expects to end the year with net debt to adjusted EBITDA in the mid-4x range. Further, the company expects net debt to adjusted EBITDA in high-3x to low-4x range by the end of 2025, driven by innovation fueled growth and continued debt paydown from improving free cash flow.
The expected retirement of a portion of the Term Loan B debt will result in reduced interest expense of approximately $65 million, or $0.11 of EPS, annually. For 2023, based on the midpoint of the company’s previous adjusted EPS guidance ($0.91), net EPS dilution would be approximately $0.03, or about 3%, while the company will be able to reduce net debt by approximately 20%.
The transaction, which is subject to regulatory approvals and customary closing conditions and adjustments, is expected to close around mid-year. The Company plans to discuss the transaction further when it releases its fourth quarter and full year fiscal 2023 financial results on February 26th, 2024.
BofA Securities, Inc. is serving as the company’s exclusive financial advisor and White & Case LLP is serving as the company’s legal advisor in connection with the transaction.
Preliminary Full Year 2023 Results
This press release discusses estimated financial results for the full year of 2023, which are preliminary, unaudited and represent the most recent current information available to company management. The company’s actual results may differ from these estimated financial results, including due to the completion of its financial closing procedures and final adjustments. The company expects to issue full financial results for the fourth quarter and full year 2023 on February 26, 2024.
Matt Bechdol fell into a class on remote sensing during his time as a student at Indiana University and what was initially a requirement for environmental science turned into a love affair. Specifically, he fell in love with the intersection of business, agriculture, technology and the environment – close to the definition of agbioscience, right? That love took him to graduate school, an ag research gig at NASA and ultimately becoming the CEO of GRYFN in 2019.
GRYFN focuses on remote sensing and spatial data to help automate business processes and bring objectivity to time-intensive, human work like plant breeding. Matt gets into the question they’re always asking: what else? From defense to oceanography, he talks about a creating a wide swath of tools to create multiple insights that solve problems across different industries.
As a CEO, Matt gives us his entrepreneurial leadership lessons, too. He talks about providing clarity on your value proposition, pricing discipline, knowing what you’re good at and hitting base hits rather than home runs.
Listen to Matt’s past episode of Agbioscience here.
Keystone Cooperative announced new and increased responsibilities for several key leaders that will build upon the strong legacy of the cooperative and position it for future success. As previously announced, current Co-Alliance CEO Kevin Still will become the President & CEO of Keystone Cooperative. Jeff Troike, current CEO of Ceres Solutions, will move into an Executive Vice President role alongside Co-Alliance’s current EVP, Scott Logue.
In their Executive Vice President roles, Jeff Troike & Scott Logue will oversee Keystone’s four divisions, which will be led by:
Eric Adair, Vice President – Energy, will head up this division and focus his efforts on continuing to grow the business and operational efficiencies within it.
Todd Masten, Vice President – Liquid Fuels, will lead the liquid fuel team in growing farm, retail, commercial & municipal gallons.
Mike Hayden, Assistant Vice President – Propane, will step into this role and seek opportunities to enhance Keystone’s LP market position.
Agronomy Leadership
Doug Whicker, Vice President – Agronomy, becomes the lead of the agronomy division and will continue to drive growth in the business through superior customer service and employee expertise.
Emily Thrasher, Assistant Vice President – Procurement, will step into the role of managing the division’s overall crop input procurement, supplier relationships and market positions for crop nutrients, crop protection, seed and value-added products.
Brock Frasch, Assistant Vice President – Agronomy, will lead the division’s efforts in operational excellence, enhanced efficiencies and agronomic insights.
Grain Leadership
Tom Blackwell, Senior Director – Grain, will lead the division and focus on bringing increased capacity, quality, and reliable market access to Keystone’s farmer-owners.
Swine and Animal Nutrition Leadership
Dewey Bucher, Vice President – Swine & Animal Nutrition, will focus on increasing this division’s feed production, swine ownership & management for the cooperative’s members.
Nathan Hedden, Assistant Vice President, will build the division’s capacity to serve contract growers and enhance production efficiencies.
In addition to these leadership roles, Keystone is also announcing the following leadership responsibilities:
Strategy and Operational Leadership
Doug Brunt, Senior Vice President – Strategy & Operational Excellence, will be responsible for Keystone’s strategic plan development and capturing synergies across the organization.
Phil Brewer, Vice President – Strategy, will focus on the budget and strategy of Keystone, while also coordinating the company’s asset management team.
Accounting, IT and Credit Leadership
Rodney Graham, Senior Vice President & CFO, will lead Accounting, Information Technology and Credit teams.
Scott Osborne, Vice President – Accounting, will be responsible for working alongside the accounting team to ensure a seamless transition to Keystone Cooperative.
Legal, Safety and Insurance
Elizabeth South, Vice President – Legal, Safety & Insurance, will ensure the Keystone team and customers are operating safely and minimizing risk for the organization.
Sales, Marketing and Communications
Amy Kinsler, Vice President – Sales, Marketing & Communications, will lead teams dedicated to amplifying Keystone’s farmer-owners voices and delivering an unmatched customer experience
HR & Talent Management
Angela Hudgins, Vice President – HR & Talent Management, is focused on delivering upon Keystone’s goal of being the employer of choice in today’s marketplace.
Public Policy, Sustainability and Innovation
Drew Garretson, Vice President – Public Policy, Sustainability & Innovation – will focus Keystone’s efforts on the opportunities to further refine and develop its approach in all three arenas.
“Keystone’s Senior Management Team will be responsible for guiding the new cooperative through the collaboration of the merger and preparing for the needs of future customers. I am excited to work alongside this team of strong performers to bring the best of our legacy cooperatives forward, delivering increased market share and outstanding products and services, while staying focused on the customer experience and dedication to our local, rural communities.” said Kevin Still, President & CEO.
Keystone Cooperative will begin business officially on March 1, 2024. The cooperative represents a merger between Co-Alliance Cooperative, Inc. and Ceres Solutions Cooperative, Inc. The cooperative will have four divisions including Energy, Agronomy, Grain, and Swine and Animal Nutrition: operating in Indiana, Ohio, Michigan and Illinois.
Farmers will be able to implement data-driven recommendations to help drive productivity. Brings together industry leaders in precise execution and agronomic solutions.
For years, farmers have had to navigate a complex landscape of digital tools to harness the power of their on-farm data. Corteva Agriscience (NYSE: CTVA) and John Deere (NYSE: DE) today announced a partnership to make it easier for farmers to access Corteva’s industry-leading agronomic recommendations through the John Deere Operations CenterTM.
This partnership combines the digital and onboard capabilities of John Deere, the global leader in intelligent farm equipment, with the agronomic expertise and analysis of Corteva, the global leader in agricultural solutions. The result is the delivery of precise, customized, agronomic insights to:
equipment, via John Deere Precision Ag technology;
Pioneer sales representatives, for providing best-in-class agronomic support; and
farmers, for improved productivity and sustainability.
“We are focused on making it as easy as possible for farmers to unlock even more value through data-driven, scientific recommendations, based on the unique characteristics of their farm. This partnership does exactly that,” said Brian Lutz, vice president of agricultural solutions, Corteva. “As a technology company dedicated to putting the best, most innovative tools in the hands of farmers, this partnership, by setting a new standard for the industry, is an exciting next step both for farmers and our companies. We’re pleased to be able to combine Corteva’s cutting-edge science with John Deere’s technology stack to simplify the last mile of execution in the field.”
“The future of farming will be enabled by the combination of data-driven insights and science-based agronomic recommendations that are precisely executed by connected and increasingly intelligent machines,” said Doug Sauder, director, product management and user experience at John Deere. “Achieving the ambitious goals for providing food, fuel, and shelter for an increasing global population necessitates the entire industry work better together to ensure we are doing everything we can to help farmers optimize how they plan and execute in the field with the best products. We are excited to work with Corteva to provide a seamless experience for our mutual customers and help them garner more value from their farm data.”
Pilot programs will begin in the spring across the United States and expand to Canada in the future. These pilots are the foundation for a strategic, multi-year partnership, leveraging the companies’ respective areas of expertise to develop and deploy digital solutions that support farmers and their pursuit of more efficient, productive and sustainable farms.
Telling the real story behind agbioscience innovation and what’s happening on farms requires a willingness to bravely sit at tables where you might be misunderstood. Michelle Miller, The Farm Babe, found seats at those tables over a decade ago and has become one of the most influential voices and advocates for modern, high-tech agriculture. From The Today Show to Forbes and People Magazine, Michelle has been breaking myths about where our food comes from and helping consumers better connect to their food through her moniker – The Farm Babe.
But her advocacy wasn’t always on behalf of the farmer. Michelle talks about her time on Rodeo Drive, her once belief in the misinformation surrounding agriculture and how life changes also changed her mindset. Whether it’s biotech or artificial intelligence (AI), she talks about how she’s approached those topics with consumers – hint: it starts with empathy for those who are trying to learn more.
What excites Michelle about the future of agbioscience and modern agriculture? From animal health to plant science, she talks about the future of our food and how farmers will continue to do more with less.
College of Agriculture researcher developed D16 through traditional breeding techniques
The license is limited to popcorn and doesn’t apply to dent corn, field corn or sweet corn.
Traditional breeding techniques
Ag Alumni Seed has supported multiple research projects at Purdue University with both financial and in-kind contributions — such as the use of land, equipment and facilities. Jay Hulbert, the company’s president and CEO, said development of D16 began with research that Guri Johal conducted at the company’s Romney facility a decade ago. Johal is a professor of botany and plant pathology in Purdue University’s College of Agriculture.
“D16 is not a GMO trait. Guri converted multiple elite Ag Alumni Seed proprietary popcorn inbreds to incorporate into D16,” Hulbert said. “The feature was developed using time-honored traditional breeding techniques without incorporating any foreign DNA into the corn.”
Benefits of D16 to farmers
Hulbert said a shorter corn plant like D16 has advantages over traditional corn plants.
“A shorter plant is less likely than a taller plant to break, fall over or ‘lodge’ under stress caused by high winds or other severe weather,” he said. “In a food crop like popcorn, lodging increases the risk of the grain being contaminated by dirt or other foreign materials; D16 may be at lower risk of contamination than traditional corn. In addition, corn can become so tall that it’s difficult for farmers to work in the field except with specialized high-clearance equipment.”
D16 may also enhance yield reliability for farmers.
“Shorter-stature corn may improve sustainability by allowing farmers to grow more plants per acre, improving yield and utilizing water and fertilizer more efficiently,” Hulbert said.
Developing D16 further
Hulbert outlined Ag Alumni Seed’s next steps with D16.
“Using our Southern Hemisphere facilities, we will fast-track new hybrids with this shorter-stature feature. The new hybrids will be tested side by side with our current hybrids in U.S. trials this coming summer,” Hulbert said. “Based on the results of those trials, we’ll make decisions on conducting further trials and commercializing D16 hybrids.”
