The return of President Trump to the White House in 2025 comes with all kinds of speculation regarding his trade policies and import tariffs. The United States agriculture industry is bracing for change. Trump signed the Agriculture Improvement Act of 2018 (aka the Farm Bill) into law, but it technically expired on Sept. 30, 2024. Congress has extended the bill through crop season 2025. While Trump looks to trim down government regulatory agencies, including the USDA and FDA, his priority is to bolster indu ...

Corteva, Inc. (CTVA) has been making strategic moves to boost overall growth. The company has been focused on maximizing its shareholders’ value. In its latest announcement, CTVA highlighted its strategy of delivering value to shareholders by addressing the global headwinds such as food security; climate change, and its intensifying weather and pressures from insects, weeds and diseases; and the energy transition from fossil fuels, which is leading to higher demand for biofuels. Corteva looks to address the ...

Pipeline of disruptive technology poised to transform future of agriculture, create value for farmers, shareholders INDIANAPOLIS, Nov. 19, 2024 /PRNewswire/ -- Today, at its 2024 Investor Day, Corteva outlined its strategy to continue to deliver value to shareholders by helping the world address three global challenges: food security, driven by a growing global population coupled with finite arable land; climate change and the resulting intensification of extreme weather and pressures from insects, weeds an ...

Reflects Company's Focus on Disciplined Capital DeploymentINDIANAPOLIS, Nov. 19, 2024 /PRNewswire/ -- Corteva, Inc. (NYSE: CTVA) today announced that its Board of Directors authorized a new $3 billion share repurchase program. The authorization is immediately effective, does not expire, and gives management discretion in determining the conditions under which shares may be purchased.This newly authorized program is in addition to the Company's existing $2.0 billion program announced in September 2022, which ...

Proprietary hybrid system marks crucial step-change, expected to deliver new floor for future growth in wheat yield, productivityINDIANAPOLIS, Nov. 18, 2024 /PRNewswire/ -- In advance of its Investor Day, Corteva today announced a revolutionary breakthrough in one of the world's most important staple crops – wheat – a first-of-its kind, proprietary non-GMO hybrid technology. While other crops like corn have exponentially benefited from hybrid technology over the years, challenges with wheat production syste ...

INDIANAPOLIS, Nov. 18, 2024 /PRNewswire/ -- Corteva Inc. (NYSE: CTVA) announced today a collaboration with bp (NYSE: BP, LSE: BP.L) on the companies' shared intent to form a crop-based biofuel feedstock joint venture (JV).The JV envisaged by Corteva and bp would produce and deliver crop-based biofuel feedstocks to help meet the anticipated growth in demand for 'sustainable aviation fuel' (SAF).A number of countries around the world have, or are in the process of implementing, mandates or tax incentives to p ...

Industry Overview - The Zacks Agriculture – Operations industry is expected to benefit from innovations and increasing consumer demand for healthy products, with positive agricultural export projections for fiscal 2024 supporting a favorable near-term outlook [1] - The industry includes companies involved in the production, transportation, storage, processing, and distribution of agricultural commodities, as well as those engaged in dairy operations and food ingredient development using gene-editing technology [3][4] Market Trends - Agricultural export projections for fiscal 2025 are estimated at $169.5 billion, a decline of $4 billion from fiscal 2024, primarily due to reduced unit values of soybeans, corn, and cotton, along with lower beef volumes [5][6] - The industry is experiencing a shift towards organic production techniques driven by growing consumer demand for healthier food, which is reducing the use of chemicals and pesticides [7][8] Challenges - Industry participants face significant challenges including fluctuating commodity prices, rising input costs, trade uncertainties, and increased operational expenses, all of which are impacting productivity and profitability [2][9] - Elevated costs due to inflation and supply chain challenges are squeezing profit margins, leading companies to implement pricing strategies and partnerships to mitigate these pressures [10][11] Performance Metrics - The Zacks Agriculture – Operations industry currently holds a Zacks Industry Rank of 86, placing it in the top 35% of over 250 Zacks industries, indicating bright near-term prospects [12][13] - Over the past year, the industry has underperformed the S&P 500 and the Zacks Consumer Staples sector, with a collective decline of 8.4% compared to a 5.8% increase for the sector and a 33.8% increase for the S&P 500 [15] Valuation - The agriculture – operations industry is trading at a forward 12-month price-to-earnings (P/E) ratio of 12.41X, significantly lower than the S&P 500's 22.7X and the sector's 17.33X [16] Company Highlights - **Calavo Growers**: A leader in the avocado industry, with a Zacks Rank 1 (Strong Buy). The company has seen a 14.1% stock rally in the past year, and its fiscal 2024 earnings estimate has increased by 13.9% [18][19] - **Corteva**: A pure-play agriculture company with a Zacks Rank 3 (Hold). The company has experienced a 23.4% stock increase over the past year, although its fiscal 2024 earnings estimate has decreased by 2.3% [20][21] - **Dole**: A global leader in fresh produce with a Zacks Rank 3 (Hold). The company has seen a 40.8% stock increase in the past year, with its fiscal 2024 sales estimate showing a growth of 0.5% [22][23] - **Adecoagro**: Engaged in various agricultural activities in South America, with a Zacks Rank 3 (Hold). The company’s shares have risen 10% in the past year, although its fiscal 2024 earnings estimate has decreased by 6.5% [24][26]

Core Insights - The article discusses the investment position of the analyst in CTVA, indicating a beneficial long position through various means such as stock ownership and options [1]. Group 1 - The analyst expresses personal opinions regarding CTVA and clarifies that no compensation is received for the article, aside from Seeking Alpha [1]. - There is no business relationship disclosed with any company mentioned in the article, emphasizing the independence of the analysis [1].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-38710 Corteva, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 82-4979 ...

Financial Data and Key Metrics Changes - Corteva reported organic sales down 5% year-over-year in Q3 2024, with crop protection up 1% and seed down 17% [20] - Operating EBITDA for the year-to-date is approximately $2.9 billion, down 5% compared to the prior year, with an operating EBITDA margin of 22%, essentially flat year-over-year [23][24] - The updated full-year guidance reflects net sales in the range of $17 billion to $17.2 billion, down 1% at the midpoint compared to the prior year [26] Business Line Data and Key Metrics Changes - The seed business delivered a strong performance with approximately $175 million in controllable benefits year-to-date, despite a 12% decline in seed volumes primarily due to reduced corn area in Argentina [8][20] - Crop protection volumes were up 11%, led by Latin America and North America, with new crop protection products seeing volume increases of over 20% [21][10] - Year-to-date, seed organic sales were up 1% with pricing up 4%, while crop protection organic sales were down 7% with pricing down 5% [22] Market Data and Key Metrics Changes - The agricultural markets remain mixed, with record demand for food and fuel, but competitive market dynamics are expected to continue into next year [11] - The crop protection market has turned a corner in every major market except Brazil, where conditions remain challenging [11] - In 2025, total area planted by farmers in the U.S. is expected to be nearly flat year-over-year, with Brazil showing a mid-single-digit increase for corn and soybeans [15] Company Strategy and Development Direction - Corteva is committed to focusing on differentiated and new technologies that warrant a premium in the market, with over 150 crop protection registration approvals year-to-date [10] - The company anticipates a continuation of record demand for grain, oilseeds, meat, and biofuels, with farmers prioritizing top-tier technologies to maximize yields [14] - The strategic shift from being a technology buyer to a technology seller is seen as a long-term growth opportunity for Corteva [56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stabilization of the crop protection industry, particularly in North America, while acknowledging ongoing challenges in Brazil [86] - The company expects to achieve double-digit earnings growth and margin expansion in 2025, driven by controllable factors and new product introductions [84] - Management highlighted the importance of the upcoming Investor Day for providing further insights into growth strategies and market conditions [40] Other Important Information - Corteva is on track to deliver $1.5 billion to $2 billion in free cash flow for the year, along with $1 billion in share repurchases [38] - A new Executive Vice President for the seed business will be appointed, with Judd O'Connor succeeding Tim Glenn [43][44] Q&A Session Summary Question: Breakdown of $150 million inflation and other costs - David Johnson indicated that about two-thirds to 75% of the $150 million is in the seed business, primarily related to trade transition costs, with the remainder attributed to inflation [48][49] Question: Guidance for seed cost deflation and CPC cost deflation - Chuck Magro noted that the guidance reflects a gross benefit of $600 million driven by cost management and productivity, with deflation accounting for about half of that [54][55] Question: Impact of deferred seed sales from Q3 to Q4 - Tim Glenn clarified that the reduction in Argentina is not a deferral but a permanent loss due to a 20% area reduction, while Brazil's summer sales are expected to be impacted as well [60][62] Question: Seed royalties expectations for next year - Chuck Magro expressed confidence in the journey to royalty neutrality, indicating that the preliminary view for next year is slightly less than the average of about $100 million [66][67] Question: Pricing environment for crop chemicals in Brazil - Robert King explained that Brazil's pricing was down about 18% for the quarter due to competition, but the company expects to finish the year in the mid-single digits for price [96][99]