Wednesday June 29 Hogs & Pigs report + Ag News

 NEBRASKA HOG INVENTORY UNCHANGED

Nebraska inventory of all hogs and pigs on June 1, 2022, was 3.50 million head, according to the USDA's National Agricultural Statistics Service. This was unchanged from June 1, 2021, but down 3% from March 1, 2022. Breeding hog inventory, at 420,000 head, was down 7% from June 1, 2021, and down 2% from last quarter. Market hog inventory, at 3.08 million head, was up 1% from last year, but down 3% from last quarter.

The March - May 2022 Nebraska pig crop, at 2.15 million head, was down 3% from 2021. Sows farrowed during the period totaled 185,000 head, down 3% from last year. The average pigs saved per litter was 11.60 for the March - May period, compared to 11.60 last year.

Nebraska hog producers intend to farrow 190,000 sows during the June - August 2022 quarter, down 5% from the actual farrowings during the same period a year ago. Intended farrowings for September - November 2022 are 190,000 sows, down 3% from the actual farrowings during the same period a year ago.



IOWA HOGS & PIGS REPORT

On June 1, 2022, there were 23.0 million hogs and pigs on Iowa farms, according to the latest USDA, National Agricultural Statistics Service – Hogs and Pigs report. Inventory was down 100,000 head from the previous quarter and down 3 percent from the previous year.

The March-May 2022 quarterly pig crop was 5.78 million head, up 8 percent from the previous quarter but down 1 percent from last year. A total of 505,000 sows farrowed during this quarter. The average pigs saved per litter was 11.45 for the quarter.

As of June 1, producers planned to farrow 510,000 sows and gilts in the June-August 2022 quarter and 510,000 head during the September-November 2022 quarter.



United States Hog Inventory Down 1 Percent

United States inventory of all hogs and pigs on June 1, 2022 was 72.5 million head. This was down 1 percent from June 1, 2021, and down slightly from March 1, 2022.   

Breeding inventory, at 6.17 million head, was down 1 percent from last year, but up 1 percent from the previous quarter.

Market hog inventory, at 66.4 million head, was down 1 percent from last year, and down slightly from last quarter.

The March-May 2022 pig crop, at 32.9 million head, was down 1 percent from 2021. Sows farrowing during this period totaled 2.99 million head, down 1 percent from 2021. The sows farrowed during this quarter represented 49 percent of the breeding herd. The average pigs saved per litter was 11.00 for the March-May period, compared to 10.95 last year.

United States hog producers intend to have 3.02 million sows farrow during the June-August 2022 quarter, down 1 percent from the actual farrowings during the same period one year earlier, and down 7 percent from the same period two years earlier. Intended farrowings for September-November 2022, at 3.01 million sows, are down 1 percent from the same period one year earlier, and down 5 percent from the same period two years earlier.

The total number of hogs under contract owned by operations with over 5,000 head, but raised by contractees, accounted for 50 percent of the total United States hog inventory, up 1 percent from the previous year.



Agricultural Custom Work – What to Charge?
Glennis McClure, NE Extension Farm and Ranch Management Analyst

The 2022 Nebraska Custom Rates Report is now available to provide market rates and information for those providing custom work and for their potential customers.

2022 Custom Rates Webinar
July 7, 2022 - Noon CT

This webinar provides a summary of the newly released 2022 Nebraska Farm Custom Rates Report, with information on how the data might be applied.

Webinar Registration - https://unl.zoom.us/webinar/register/WN_0xhHy9KuRbO4-lnGE26eZA
Go to Custom Rates Report - https://cap.unl.edu/customrates

There are various resources or guides available to assist custom machine hire and service providers in figuring rates in Nebraska. The Nebraska Custom Rates Report is a popular biennial publication, now updated for 2022.  Information provided in the report is from survey data gathered on 136 different custom operations and services from 193 survey respondents providing those services in Nebraska. The report provides market rates and is an informational source for those providing custom work and their potential customers. The report provides common charges, or a range of rates charged in their area and for Nebraska.  Another important source of information is to calculate cost of owning and operating machinery and equipment with a program like the Agricultural Budget Calculator (ABC). Considering market information combined with covering costs plus a profit margin is a common formula for setting a price for services.   

Agricultural custom rate charges can vary across the state; therefore, the Nebraska Custom Rates Report provides rate details from survey responses grouped by Nebraska Agricultural Statistics Districts.  Several factors contribute to rate differences reported by survey participants, including field and job sizes, soil conditions, and the number of responses for the various operations. Some operators may charge lower than market rate prices to neighbors or relatives. Rates may change from year-to-year due to expense differences and local market forces. Determining appropriate charges for custom machine hire and agricultural services may include consideration of various elements including current market rates as reported in the custom rates survey report, market demand in the area for specific types of custom work, and availability of services.



Statement by Mark McHargue, President, Regarding Mike Flood Election to Congress

“Nebraska Farm Bureau congratulates Mike Flood on his election to serve Nebraska’s first congressional district in the U.S. House of Representatives. As Flood knows, there are many issues facing American agriculture from tax reform and expanding broadband, to economic development in rural areas. He is a proven leader who will work every day for the prosperity of Nebraska farm and ranch families. We look forward to working with him to tackle those challenges especially in the areas of growing our economy, cutting taxes, and reducing federal overreach.”



Weekly Ethanol Production for 6/17/24 and 6/24/2022

The U.S. Energy Information Administration released fuel supply-and-demand data for the last two weeks today, due to systems issues that were experienced last week. The Renewable Fuels Association’s analysis of the EIA data for each week is provided below.

For the Week Ending June 17:
Ethanol production narrowed by 0.5% to 1.055 million b/d. Production was 0.7% more than the same week last year and 3.4% above the five-year average for the week. The four-week average ethanol production volume increased 1.0% to 1.056 million b/d, equivalent to an annualized rate of 16.19 billion gallons (bg).

Ethanol stocks expanded 1.2% to 23.5 million barrels. Stocks were 11.2% higher than a year ago and 9.5% above the five-year average.
                                                                                                              
The volume of gasoline supplied to the U.S. market, a measure of implied demand, slid 6.5% to a twelve-week low of 8.51 million b/d (130.38 bg annualized). Demand was 9.9% less than a year ago and 9.1% below the five-year average.

Conversely, refiner/blender net inputs of ethanol increased 0.2% to 903,000 b/d, equivalent to 13.84 bg annualized. However, net inputs were 2.1% less than a year ago and 2.1% below the five-year average.

There were no imports of ethanol.

For the Week Ending June 24:
Ethanol production eased 0.4% to 1.051 million b/d, equivalent to 44.14 million gallons daily. Production was 0.7% less than the same week last year but 2.6% above the five-year average for the week. The four-week average ethanol production volume was also 1.051 million b/d, equivalent to an annualized rate of 16.11 billion gallons (bg).

Ethanol stocks dropped 3.1% to 22.7 million barrels, a low for the year. However, stocks were 5.4% higher than a year ago and 5.2% above the five-year average. Inventories thinned across all regions except the East Coast (PADD 1).
                                                                                                              
Gasoline supplied to the U.S. market rebounded 4.9% to 8.92 million b/d (136.77 bg annualized). Demand was 2.7% less than a year ago and 4.7% below the five-year average.

Refiner/blender net inputs of ethanol rose 0.6% to 908,000 b/d, equivalent to 13.92 bg annualized. Net inputs were 3.2% less than a year ago and 1.5% below the five-year average.

There were no imports of ethanol for the sixth consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of April 2022.)



High Fuel Prices Squeeze Farms and Ranches

Rising fuel prices are putting growing pressure on farmers and ranchers as they grapple with increased costs of growing food and fiber. USDA estimates show that the cost of fuel, lube and electricity is expected to increase 34% in 2022 compared to 2021. American Farm Bureau Federation economists analyze the factors contributing to rising fuel prices in the latest Market Intel.

The war in Ukraine has reduced availability of global crude oil and U.S. domestic production is down while demand is increasing in the United States and abroad. Diesel prices rose to $5.718 per gallon in June, up $2.432 per gallon, or 74%, compared to $3.286 per gallon in June 2021. The current high price of diesel is more than two times the price paid before 2020.  

“While some farmers are seeing increases in commodity prices, their gains are being eaten up by higher expenses,” said AFBF President Zippy Duvall. “Many farmers and ranchers are concerned they won’t be able to break even, much less make a profit. It’s not just on-farm costs taking a toll. High diesel and gasoline prices, among other increased costs, all affect the food supply chain, starting at the farm and continuing to the grocery store, which means all families are ultimately paying more to put food on their tables.”

Prices could potentially begin to decline, but the U.S. must increase domestic production and expand refining capacity. Farmers and ranchers will also be watching the weather as hurricane season ramps up. Severe weather could impact production if refineries or offshore sites are hit by storms.



USDA Has Issued More Than $4 Billion in Emergency Relief Program Payments to Date

Agriculture Secretary Tom Vilsack announced that to date, agricultural producers have already received more than $4 billion through the Emergency Relief Program (ERP), representing approximately 67% of the more than $6 billion projected to be paid through this first phase of the program. The U.S. Department of Agriculture (USDA) mailed out pre-filled applications in late May to producers with crop insurance who suffered losses due to natural disasters in 2020 and 2021. Commodity and specialty crop producers have until July 22 to complete applications.

“We recognize the financial recovery need is great and worked deliberately to create a program delivery process that would ensure quick payments to producers,” Vilsack said. “I am extremely proud to share that the strategically streamlined ERP application and program implementation process have yielded the desired results – reduced burdens on and expedited payments to approximately 120,000 disaster-impacted agricultural producers, to date.”

USDA is implementing ERP and ELRP in two phases, with the first phase utilizing existing claim data to provide relief expediently, and the second phase focusing on ensuring producers not covered by other programs receive assistance. For phase one, USDA used crop insurance and Noninsured Crop Disaster Assistance Program (NAP) claim data.

Both ERP and the previously announced Emergency Livestock Relief Program (ELRP) are funded by the Extending Government Funding and Delivering Emergency Assistance Act, which President Biden signed into law in 2021. The law provided $10 billion to help agricultural producers impacted by wildfires, droughts, hurricanes, winter storms and other eligible disasters experienced during calendar years 2020 and 2021, of which $750 million is committed to livestock producers who experienced losses to drought or wildfire in calendar year 2021. Eligible livestock producers received ELRP payments totaling more than $590 million since the program was rolled out in late March.



2022 U.S. Childhood Agricultural Injuries Fact Sheet released
 
Youth worker fatalities in agriculture exceed all other industries combined, according to the 2022 Childhood Agricultural Injuries Fact Sheet published by the National Children’s Center for Rural and Agricultural Health and Safety. The fact sheet data includes children/youth under 18 from 2001-2021.
 
About every three days, a child dies in an agriculture-related incident, and each day, at least 33 children are seriously injured, said Marsha Salzwedel, Ed.D., project scientist and agricultural youth safety specialist at the NIOSH-funded National Children’s Center, part of the National Farm Medicine Center, Marshfield Clinic Research Institute.
 
“We hope this fact sheet helps everyone understand the severity of the problem,” Salzwedel said.
 
Leading reported sources of fatalities involved transportation (47%), which includes tractors and all-terrain vehicles (ATVs), and contact with machinery (20 percent) such as being pinned between a skid steer’s lift arms and frame.
 
Other notable statistics on injuries among youth:
-    Youth under age 16 have 12 times the risk of ATV injuries (both fatal and non-fatal) compared to adults.
-    From 2001 to 2015, 48 percent of all fatal occupational injuries to young workers occurred in agriculture.
-    There are over four times more actual occupational injuries than are reported. As many as 88 percent of agricultural injuries and illnesses are not captured by traditional surveillance methods.
 
Bryan Weichelt, Ph.D., associate research scientist, led compilation of the fact sheet, alongside colleague, Rick Burke, M.P.H.
 
“There is no central database on childhood agricultural injuries in the U.S.,” Weichelt said. “In putting together this fact sheet we drew upon the best available data from a variety of sources.”
 
For information and resources to prevent child agricultural injuries, visit www.cultivatesafety.org.
 


Register Today for the Cattle Industry Summer Business Meeting

It’s not too late to register for the 2022 Cattle Industry Summer Business Meeting, which will be held in Reno, Nevada, July 25-27.

“Every summer cattle producers from across the country gather to conduct business and set a course for various projects for the betterment of the beef cattle industry,” said National Cattlemen’s Beef Association President Don Schiefelbein. “I invite producers to join us in Nevada for engaging meetings, networking and industry updates.”

Producers attending policy and Beef Checkoff committee meetings will discuss current developments, work on initiatives developed at Convention and make plans for the upcoming fiscal year. Regional meetings will give producers the opportunity to discuss regional issues impacting their operations.

In addition to business meetings, there will be a General Session on Tuesday featuring two Sam’s Club executives sharing their experiences and knowledge working on the consumer-facing side of the beef industry. Later in the day, the always popular Checkoff Highlights Session will highlight the Checkoff-funded programs that are driving consumer beef demand.

On Tuesday evening, 2021 Environmental Stewardship Award Program (ESAP) regional winners will be honored, and the national winner will be announced. ESAP, one of the most prestigious awards in the beef cattle industry, recognizes cattle producers across the nation who use innovative practices to protect and enhance natural resources while maintaining or increasing the profitability of their businesses.

Register at www.ncba.org before July 6 for discounted rates. All registrants will be entered in a drawing for a chance to win a Dell Rugged Laptop package, valued at more than $2,000. Discounted air travel through United Airlines is also available.



R-CALF USA Announces Details of 23rd Annual Convention “Code of the West”

R-CALF USA will host its 23rd annual convention and trade show “Code of the West,” Aug. 18-19, 2022, in Deadwood, South Dakota. With an exciting lineup of speakers, the group looks forward to its success in further developing strategies to improve the trajectory of the U.S. cattle industry.

The group’s U.S. Cattle Industry Long Range Plan, released in December 2020, and the 2021 national convention pushed for immediate congressional solutions to restore mandatory country of origin labeling (MCOOL) for beef and pass the spot market protection bill or 50/14 (S.949) requiring the largest beef packers to buy at least half of their cattle needs from the spot (or cash) market. Following convention, R-CALF USA welcomed the introduction of the American Beef Labeling Act in the Senate (S.2716) to restore MCOOL for beef, later followed by its introduction into the House of Representatives (H.R.7291).

This year’s convention will provide attendees with the tools needed to win passage of these bills and inform them of additional solutions to regain for them the opportunity to be profitable and prosperous in their U.S cattle industry.

The "Code of the West” convention and trade show kicks off Thursday, Aug. 18 with the trade show and registration opening at 7 a.m. Convention will open with a prayer breakfast by Max Thornsberry, DVM, at 8:30 a.m. Unlike previous conventions, there will not be a Property Rights Day on Wednesday, Aug. 17.

Following the prayer breakfast, Thursday morning will include presentations by Wyoming rancher, attorney and Global Roundtable for Sustainable Beef expert Tracy Hunt; and water, natural resources and constitutional attorney Harriet Hageman. Hageman serves as R-CALF USA’s lead attorney in the ongoing animal identification lawsuit.

R-CALF USA’s lead attorney in its ongoing checkoff lawsuit, David Muraskin, Food Project Senior Attorney at Public Justice, will present Thursday afternoon, followed by a trade presentation by R-CALF USA CEO Bill Bullard and a private property rights presentation by Dr. Norman Kincaide.

Sen. Mike Rounds (R-S.Dak.) will make an appearance Thursday afternoon shortly followed by a presentation from Andrew Green, Senior Advisor for Fair and Competitive Markets at the U.S. Department of Agriculture.

Thursday’s activities will conclude with attendees being treated to an authentic chuck wagon dinner, music and social at the local Days of ‘76 Museum.

Friday will open with an affiliate and trade show breakfast allowing attendees to browse the trade show until the morning’s presentations. Georgetown professor Nathan Miller will present his “Buyer Power in the Beef Packing Industry” research and strategies, and Colorado veterinarian and rancher Lora Bledsoe, DVM, will share national and global threats to cattle health. Friday morning will conclude with a presentation by Michael Stumo, Coalition for a Prosperous America CEO.

A large player in South Dakota’s Beef to Schools program and Western Dakota Tech’s Meat Processing instructional program, Ken Charfauros, owner of Wall Meat Processing, will present Friday over lunch.

Friday afternoon will host a Livestock Markets panel; a presentation by Patrick McGahan, Senior Associate, Scott+Scott Attorneys at Law LLP and counsel in R-CALF USA’s antitrust lawsuit. Bill Bullard’s CEO Report will conclude the afternoon’s presentations preceding the business and policy meetings.

The business and policy meetings will include Board of Director elections. The following regions will nominate a member to the Board of Directors: Region VII (Iowa, Minn., Wis.); Region VIII (Ky., Ohio, Tenn., W.Va.); Region IX (Ala., Ga., Fla.); Region XI (Calif., Hawaii, Nev.); and Region XII (Ark., La., Miss.). Further nominations will be taken from the floor at the annual meeting. In addition, any member may petition to be nominated by forwarding a letter to the Board of Directors making such a request.

Following Friday’s banquet dinner, Dr. Mary Hendrickson, University of Missouri Associate Professor of Rural Sociology, will give the keynote address highlighting reforms to address the monopolistic structure of the marketplace. Hendrickson is expected to offer suggestion on how to restore competition and explain the effects of concentration on rural America, including the likely future of rural America if the industry stays on its current trajectory. A saddle raffle and a live auction fundraiser will follow.

An R-CALF USA affiliate report and committee reports from R-CALF USA’s animal ID, checkoff, sheep, marketing, COOL and private property rights committees will be presented throughout the course of the convention.

The trade show will be open Thursday from 7 a.m. to 5 p.m. and Friday from 8 a.m. to 5 p.m. Attendees will have the opportunity to visit with the different vendors throughout the convention and during the numerous trade show breaks.

To find hotel accommodations or register for the event, visit  www.RCALFconvention.com.



As NCGA Raises Alarms about Tariffs, Court of International Trade Begins Asking Tough Questions of Fertilizer Companies

Fertilizer companies have been under scrutiny this week as the Court of International Trade considers an appeal of the U.S. International Trade Commission’s decision to place duties on phosphorus fertilizers from Morocco and Russia.

These developments come after the National Corn Growers Association has worked for months to eliminate tariffs on nitrogen and phosphorous fertilizer imports.

“We have been banging on the doors in Washington, sounding the alarm and telling federal officials that tariffs are hurting farmers,” said NCGA President Chris Edgington. “This week, we saw some results as a judge with the Court of International Trade began asking tough questions about the assertions made by fertilizer companies.”

The appeal came after the U.S. Department of Commerce and International Trade Commission last year ruled in favor of a petition by the U.S.-based Mosaic to impose duties on phosphorous fertilizers imported from Morocco and Russia. Mosaic had claimed that unfairly subsidized foreign companies were flooding the U.S. market with fertilizers and selling the products at extremely low prices.
On Tuesday, Judge Stephen Vaden, with the Court of International Trade, grilled ITC officials about how they determined that unfair imports of phosphate fertilizer from Morocco had injured U.S. producers.

Last year, CF Industries, another U.S.-based fertilizer company, also filed a petition with U.S. ITC asking that the commission place tariffs on certain nitrogen fertilizers imported from Russia and Trinidad and Tobago.

NCGA quickly responded with an unusually direct op-ed, taking the fertilizer companies to task and arguing that tariffs placed a severe and unnecessary burden on family farms.
 
Earlier this month, NCGA testified at a U.S. ITC hearing, where organization representatives made a strong case that shortages in nitrogen fertilizers are placing an undue burden on farmers and could eventually be detrimental to the global food supply.  

NCGA has also called on the Biden administration and Congress to step in on the matter if fertilizer companies don’t move to withdraw their ITC petitions.

Both decisions by ITC and the Court of International Trade are expected later this summer.



Soybean Farmers have Rallied for Biobased—and Appreciate Backing in New Pilot Program!

USDA has announced available funding for the Bioproduct Pilot Program, which was established through the Infrastructure Investment and Jobs Act that was signed into law last November. The pilot program, which was a priority of the American Soybean Association during drafting of the legislation, will provide $10 million over two years to study the benefits of biobased products for construction materials and consumer products.

Dave Walton grows soybeans in Iowa and is an ASA director and chair of the association’s Biofuels and Infrastructure Committee. Walton said, “The Bioproduct Pilot Program will provide a great opportunity to expand upon what we in the soy family have been doing for years—creating plant-based, sustainable construction materials and consumer goods using U.S.-grown soy. ASA was glad to work with Senator Rounds and others to support the inclusion of this language in the Bipartisan Infrastructure Law and we welcome this announcement from USDA.”



Corteva Agriscience, BASF and MS Technologies Sign Agreement to Bring Industry-first Soybean Trait Stack to Market in United States, Canada

Corteva Agriscience, BASF and MS Technologies™ today announced they have entered into a mutually beneficial trait licensing agreement to develop next-generation Enlist E3® soybeans with the nematode resistant soybean (NRS) trait for farmers in the United States and Canada.

As part of this agreement, Corteva and MS Technologies have licensed the Enlist E3 soybean trait to BASF for development with the NRS trait in BASF germplasm. BASF has licensed its NRS trait to Corteva and MS Technologies for use in Enlist E3 soybeans. The three companies anticipate commercialization of Enlist E3 soybean varieties containing the NRS trait in the late 2020s, pending applicable regulatory reviews and completion of field testing.

The new NRS trait is expected to provide unprecedented protection against nematode pests in soybeans, including soybean cyst nematode (SCN). A common parasite in North America, SCN accounts for more than $1 billion1 in economic losses for U.S. farmers each year. The NRS trait provides yield protection above and beyond the current industry standard native SCN resistance traits, including PI88788 and Peking, as well as protection against some of the most economically important nematode species for soybean farmers beyond North America, including Pratylenchus brachyurus2.

"Our nematode resistant soybean trait will be the first commercially available biotechnology trait developed to control nematodes," said Linda Trolinder, Senior Vice President of BASF Seeds and Traits R&D. "BASF is in its 5th year of advanced field testing the NRS trait in the U.S. and in our trials, it has demonstrated an average 8% yield benefit above today's SCN-resistant varieties."

The Enlist® weed control system is an industry-leading system for soybeans, corn and cotton. Enlist E3 soybeans are tolerant to 2,4-D choline, glyphosate and glufosinate herbicides, giving farmers additional options to manage resistant and hard-to-control weeds.

"Farmers have embraced the Enlist E3 soybean trait, which offers maximum flexibility among the industry's various weed-control systems," said Tim Glenn, Executive Vice President, Seed Business Unit, Corteva Agriscience. "The addition of the NRS trait to Enlist E3 soybeans is a logical next step for Corteva. Offering both trait technologies together will provide soybean farmers with additional functionality for pest management."

The Enlist E3 soybean trait is jointly developed and owned by Corteva and MS Technologies and was commercialized in 2019.

"We are pleased to see the technology fit various growing environments. The agreement between MS Technologies, BASF and Corteva enables access of Enlist E3 soybeans to more farmers in the United States and Canada," noted Joseph Merschman, President of MS Technologies. "We are excited to be working toward a new, sustainable option for farmers who want to manage weeds and nematodes in high-performing soybean varieties."



FMC Corporation significantly expands biologicals platform with agreement to acquire BioPhero

FMC Corporation (NYSE: FMC), an agricultural sciences company, today announced a definitive agreement to acquire BioPhero ApS, a Denmark-based pheromone research and production company. The acquisition adds biologically produced state-of-the-art pheromone insect control technology to FMC's product portfolio and R&D pipeline, underscoring FMC's role as a leader in delivering innovative and sustainable crop protection solutions.

BioPhero has pioneered a highly efficient yeast fermentation process for manufacturing pheromones at significantly lower costs and with fewer production steps compared to competitors' traditional chemical synthesis methods. Lower costs expand the pheromone addressable market from today's focus on specialty fruit and vegetables to now include the large row crop market. FMC expects pheromones and pheromone-based products to contribute approximately $1 billion in revenue at above company-average EBITDA margin by 2030.

"This acquisition demonstrates our continuing commitment to invest in biologicals and adjacent technologies, expanding our world-class portfolio while advancing sustainable agriculture," said Mark Douglas, FMC president and chief executive officer. "BioPhero is a pioneer in the production of pheromones through a unique, highly efficient bioprocessing method—a game-changer in pheromone manufacturing technology. FMC's broad market access, leadership position in the high-value insecticide market, formulation know-how and application expertise provide significant opportunities to bring sustainably advantaged pheromone technology to more agricultural markets around the world. We look forward to adding an extensive pheromone platform to our biologicals business and welcoming the BioPhero team to FMC."

"BioPhero is excited by the opportunity to accelerate our development and the road to market with the objective to make pheromones widely available," said Dr. Irina Borodina, co-founder and chief scientific officer of BioPhero. "Given FMC's leadership position in the development of biological plant health products, manufacturing and formulation expertise, and existing operations in Denmark, we believe FMC is an excellent company to take this business forward. FMC's global market access and significant investments in R&D will accelerate our ability to bring highly advanced pheromone insect control technology to growers around the world."

Pheromones can be used in an integrated pest management program to control the buildup of insect populations in farmers' fields by disrupting the insect mating process, reducing overall egg-laying by adults and decreasing the next generation of the target insect population. Pheromones do not have an impact on the environment, promote biodiversity and do not harm beneficial insects, such as pollinators, since they precisely target specific pests.

"FMC directs 100 percent of its R&D investments to discover and develop more sustainable products," said Dr. Kathleen Shelton, FMC executive vice president and chief technology officer. "We're excited to add BioPhero's innovative pheromone molecules to our new product pipeline, and we expect to launch five new pheromone products over the next three to five years. The opportunities for advanced biomanufacturing technology extend well beyond insect control. Working together, we can significantly expand the use of fermentation technologies across a wider set of crops targeting a variety of pests, including fungi and weeds."

Novo Holding A/S, a world-leading science investor focused on creating long-term value, has supported BioPhero for six years. "Novo Holdings believes that biotechnology is a key component in the transition towards a more sustainable society," said Søren Møller, managing partner at Novo Holdings. "The technology developed by BioPhero is an excellent example of using nature's own pheromones to combat pests in a safe and yet efficient way. Novo Holdings has invested in BioPhero since inception and has renewed its commitment to the company in each financing round. We are very satisfied to see the rapid development of the company, and this sale demonstrates that FMC shares our vision of introducing new sustainable solutions in agriculture."

The purchase price of approximately $200 million will be paid at closing. Following regulatory approvals and satisfaction of customary closing conditions, the acquisition of BioPhero is expected to be completed by the end of the third quarter 2022.