IANR PROGRAM EXPANDS UNDERGRAD OPPORTUNITIES FOR SCIENCE, AG STUDY
What is a key way to build a stronger U.S. scientific community for the future? By expanding learning opportunities to a broad range of interested students now.
That goal is the foundation for a well-rounded science education program in the University of Nebraska–Lincoln’s Institute of Agriculture and Natural Resources this summer.
The 10-week program, with the theme “Expanding Opportunities in Agricultural Sciences and Crop-to-Food Innovation,” has brought together Husker scientists and private-sector experts to provide a wide-ranging curriculum to select undergraduate students from Nebraska and across the country. The project’s recruitment included historically Black colleges and universities, including those created under the 1890 Second Morrill Act, to extend opportunities to underrepresented students in science- and agriculture-related careers.
“We’ve learned how to communicate science better and how to think more scientifically and about the scientific method,” said Nathlita Karnley[GS1], a biology major at Fayetteville State University, an HBCU in North Carolina. “You really learn about science and the impact of your project. You learn how it’s going to benefit society. It also can help you regarding framing your business, if you want a business.”
Each student is mentored by an IANR faculty member. Karnley’s mentor is microbiologist Jennifer Auchtung, assistant professor of food science and technology.
The U.S. Department of Agriculture’s National Institute of Food and Agriculture provided a $742,000 grant to the university for the program, known as Research and Extension Experiences for Undergraduates. IANR will host the program for five summers. Six students are participating this summer, and 46 will participate over the course of the program.
“Expanding opportunities is really important,” said Ed Cahoon, George W. Holmes Professor[GS2] of biochemistry and the project’s principal investigator. “A lot of students, especially from HBCUs and 1890 land-grant universities, may not have the opportunities that some other students do to consider research as a career.”
For some of the students, this is their first chance for focused laboratory research, for example.
The country’s scientific community can benefit by working to remove some of the barriers to pursuing science as a career, said Cahoon, director of the Center for Plant Science Innovation.
Students have had sessions on science literacy, research fundamentals and science communication skills. Faculty and graduate students are leading mentored laboratory experiences. Sessions explain research-project commercialization and entrepreneurship. Private-sector experts describe opportunities for science-focused employment in industry.
The program expands educational opportunities for “students who think they might be interested in pursuing research, going to grad school or having a career in agriculture and agricultural sciences,” said Amanda Ramer-Tait, Maxcy Professor of Agriculture and Natural Resources with Nebraska’s Department of Food Science and Technology. “I’m excited we can provide these opportunities for students to find out if it’s something that they’re passionate about.”
The sessions give students “tools to plan a path forward for themselves,” she said, “and give them the opportunity to see themselves as being successful as members of the agricultural sciences community.”
Ramer-Tait is co-principal investigator for the program, along with Paul Velander, assistant professor of biochemistry and Nebraska Extension specialist.
“You’re really building up students, both from the very fundamental level — in the wet lab space, how to think through a scientific lens, science literacy — but also mentoring them to think clearly and to pursue what their interests are,” Velander said. “The program also gives them context about science and business and entrepreneurialism.”
Students have learned about research commercialization and business dimensions from Tom Field, director of the Engler Agribusiness Entrepreneurship Program at Nebraska; Josh Nichol-Caddy, director of technology commercialization with the College of Business Administration at the University of Nebraska at Omaha; and Matt Foley, program director at Invest Nebraska and program director at The Combine, an ag-tech incubator.
Each Wednesday, students have lunches in which industry experts describe science-focused professions in the private sector. At one lunch, students visited the genomics labs at the Neogen facility in Lincoln.
Even if students don’t decide to pursue graduate school in the sciences, Velander said, the program helps them see the relevance of strong scientific understanding across a wide range of professions.
In addition, Velander said, the program is helping IANR graduate students and postdoctoral researchers hone their mentoring skills as they help the students.
Husker faculty pursued the grant in part because the transdisciplinary collaboration among IANR departments and research centers provides promising opportunities for students to see the many connections among scientific disciplines. That discussion began, Ramer-Tait said, in the wake of the “many collaborations faculty have across our campus that revolve around novel innovations with food crops and the eventual incorporation of those novel crops into novel food products that could benefit human health.”
The program, with its “Crop-to-Food Innovation” focus, is a collaboration among the Center for Plant Science Innovation, Nebraska Food for Health Center, Food Innovation Center and Industrial Agricultural Products Center. Participating faculty are from the departments of biochemistry, agronomy and horticulture, food science and technology, and biological systems engineering.
The summer sessions and lab experience, Cahoon said, are “designed to give students the perspective of where their food comes from, starting from the crop going through all the stages in between — bioprocessing, formulations, nutritional evaluation — and, at the end, how a novel food product can be developed and marketed.”
Dulcie Archuleta, a biology major at Nebraska Wesleyan University, has been encouraged by her lab work, with Ramer-Tait as her mentor.
“I enjoyed my lab so much that I'm definitely considering grad school at UNL,” Archuleta said. “I really like working in my lab and would want to come back, probably, to continue my work.”
Gannon Cole, a chemistry major at West Virginia State University, an 1890 land-grant HBCU, said he intends to pursue graduate study and a science-related career.
“I know the value of research and internships that provide you with experience you otherwise would not have,” said Cole, who is mentored by Cahoon.
Such experience “can take you a long way, and that's what a lot of employers tend to look for in a person.”
The program has significant value in providing lab experience and connections with faculty and experts, said Shane Rice, a biological engineering major at North Carolina A&T State University, an HBCU. His program mentor is Ozan Ciftci, Kenneth E. Morrison Distinguished Professor of Food Engineering.
Other students in the program are Deuris Pena, a biochemistry major at Bloomfield College in New Jersey. His mentor is Thomas Clemente, Eugene W. Price Distinguished Professor of Biotechnology in the Department of Agronomy and Horticulture. WrayVauze Givens, an agricultural studies major at Lincoln University, an HBCU in Missouri, is mentored by Devin Rose, professor of food science and technology.
The wide range of subjects addressed by the sessions is important in giving students a full sense of modern scientific inquiry and practice, Raimer-Tait said.
“We're training the next generation of scientists, and we want to train them to be outstanding scientists, but we also want them to have training in entrepreneurial ideas and techniques as well as being comfortable communicating their science,” she said. “That's so important as we train the next generation.”
In sum, Cahoon said, this project provides “a great opportunity to impact the lives and careers of students and to promote participation of a greater diversity of people and ideas that are needed to solve global challenges.”
Iowa cattlemen influence policy at NCBA's Summer Business Meeting
This week, Iowa cattle industry leaders voiced our state Association's policy positions at the 2022 Cattle Industry Summer Business Meeting in Reno, Nevada. The annual meeting, hosted by the National Cattlemen’s Beef Association, took place July 25-27.
On Wednesday, Iowa cattle industry leaders engaged in various policy committee meetings. Iowa cattlemen evoked a discussion on 14-day delivery in the Live Cattle Marketing Policy Committee Meeting. Iowa Cattlemen’s Association president Bob Noble presented the following remarks before National Cattlemen’s Beef Association (NCBA) members:
“We believe that getting fed cattle inventory harvested in a timely manner is imperative and affects market integrity as well as producer profitability,” Noble said. “In the current framework, we hear the farmer/feeder in the Upper Midwest is challenged by leverage to negotiate terms such as consistent harvest dates. Additionally, there are subsequent consequences for the buyer if cattle are not harvested in a timely manner following purchase.”
As Iowa led the discussion, several other states joined in the discussion which prioritized fed cattle delivery. The Iowa Cattlemen’s Association offered to lead a multi-state effort to create a regulatory framework that ensures negotiated cattle are delivered within 14 days. The working group will present its plan to the NCBA membership at the 2023 Cattle Industry Convention & NCBA Trade Show in New Orleans, Louisiana.
Iowa cattle industry leaders also weighed in on policy concerning the Conservation Reserve Program (CRP). The Iowa Cattlemen’s Association proposed an amendment, which supports changes to CRP law. We asked NCBA to support changes that would allow cattle to be utilized for conservation management on CRP acres. Additionally, we would like to see the program function as a working lands conservation program, emphasizing the importance of cattle on the land.
Floss Recognized For 25 Years Of Service To Council
The U.S. Grains Council (USGC) recognized Iowa’s Craig Floss for his 25 years of service to the organization at its 62nd Annual Board of Delegates Meeting in Sacramento, California, this week. Floss has been the CEO of the Iowa Corn Growers’ Association (ICGA) and the Iowa Corn Promotion Board (ICPB) since 1997.
Floss grew up on a corn, soybean and livestock farm in Baxter, Iowa. He assisted with a feeder pig operation as a teenager, which helped him finance his education at Iowa State University. He went on to work in in Chicago for Spraying Systems Co., where he was responsible for all sales outside of the United States.
When Floss received a call about the position at the ICGA, he jumped at the chance to return to his home state.
“We ended up coming to Des Moines to serve Iowa’s corn growers, about 35 minutes from the family farm,” Floss said. “I never thought I would get the chance to come back to Iowa, let alone so close to home. It has worked out very well personally and professionally.”
Floss’ involvement with the Council began immediately afterwards, joining a trade team to Malaysia, Vietnam and China that was “very impressionable” for him during his transition into Council activities.
“It really helped me understand the Council's purpose in terms of not just grain sales, but also the grain shipping and port industries as well,” Floss said.
Floss served on the Council’s Board of Directors from 2014 to 2018 as the state checkoff sector director, during which time he helped oversee the Council’s adaptation and expansion of distillers’ dried grains with solubles (DDGS) and ethanol.
“Today more than ever, it’s about food security and using ethanol to reduce pollution levels,” Floss said. “When you’re talking about improving health from a nutritional and environmental perspective, I’d say that's a great story to be part of.”
Out of the office, Floss enjoys spending time at the lake with his wife of 33 years and their three children. Floss is also a home brewer who noted he is always eager to support the barley industry by visiting international breweries to study their operations.
Deere to Move Hay & Forage Manufacturing to Mexico
John Deere announced some product production will move from Ottumwa to Mexico by the end of 2023, but simultaneously announced plans to revitalize their Ottumwa plant for the future.
The Ottumwa Courier reports that the company announced that over the next 18 months, John Deere Mower Conditioner production will transition from Ottumwa Works to the company's existing Hay and Forage mower factory in Monterrey, Mexico, 1,100 miles away.
The number of employees impacted is not yet known, the company said. The ultimate number will depend on potential reassignment opportunities once the move is made and overall production levels at the John Deere Ottumwa Works plant.
Dan Bernick, the company's public relations manager, told the Ottumwa Courier that the move consolidates the company's mowing implements to a single location with "existing production capacity and complimentary manufacturing competencies."
The Ottumwa plant also makes round balers, self-propelled windrowers and square balers. Bernick said the company will also invest in the Ottumwa plant. The company also announced Thursday plans to form a committee that will develop plans to "revitalize" the facility for the future. The company says this will include a focus on the other products it makes at the Ottumwa plant, specifically "leveraging new processes and technologies to further improve quality and productivity."
Deere doesn't anticipate the changes to majorly impact dealers, customers, suppliers, and service providers.
New Research Defines ASFV Stability in Feed Held at Three Storage Temperatures
A new report in the journal Transboundary and Emerging Diseases entitled, “Stability of African swine fever virus in feed during environmental storage,” details the length of time ASFV remains stable in feed at different storage temperatures. The robust study was conducted by a research team led by Dr. Megan Niederwerder, Associate Director of the Swine Health Information Center.
“Previous estimates of ASFV stability in feed were based on fluctuating temperature and humidity conditions consistent with global trade,” Niederwerder explained. “Novel data generated in the current study defines ASFV stability in feed at constant temperatures. This was an essential next step to guide holding-time recommendations for high-risk feed ingredients within feed mills and swine farms.”
In the published study, the stability of ASFV Georgia 2007 was determined in three feed matrices, including complete feed, soybean meal, and ground corncob particles. After ASFV contamination, feed matrices were held at three environmental temperatures (cool storage at 40°F, ambient storage at 68°F, and hot storage at 95°F) for up to 365 days. Feed samples were tested throughout the one-year period for ASFV genome detection on PCR and ASFV infectivity on cell culture and in swine bioassay.
Results demonstrate high stability of ASFV DNA in feed, with detection by PCR in almost all feed matrices throughout the conclusion of each study, including 365 days after ASFV inoculation when stored at 40°F and 68°F. Infectious ASFV was most stable in soybean meal, with the virus maintaining infectivity as determined by swine bioassay for at least 112 days at 40°F, at least 21 days at 68°F, and at least seven days at 95°F.
Additionally, feed additives were tested for their ability to reduce ASFV infectivity in complete feed stored at three environmental temperatures (40°F, 68°F, 95°F). Both medium chain fatty acid and formaldehyde-based feed additives were confirmed to be effective mitigants in tested conditions.
Results help define the risk and mitigation of ASFV introduction through feed, confirms thermal sensitivity of ASFV in feed, and underscores the stabilizing environment of soybean meal. Providing the most comprehensive data on ASFV longevity in plant-based feed to date, this study confirms ASFV DNA can be detected in feed at least one year after contamination. Further, swine bioassays demonstrate that infectious ASFV can be present in soybean meal for several weeks after testing negative on cell culture.
“Minimum holding time recommendations were generated in this research for three environments, providing producers and feed mills key guidance to reduce ASFV risk in feed,” Niederwerder concludes. “Feed biosecurity should be considered a fundamental part of all swine biosecurity plans. This foundational study furthers our goals toward ASFV prevention and protection of US swine herd health.”
Research was supported by funding from the National Pork Board and the Foundation for Food and Agriculture Research, the State of Kansas National Bio and Agro-defense Facility Fund, Purina Animal Nutrition, Cargill Animal Nutrition, and Kemin Industries.
Spring Wheat Tour Final Estimates: 49.1 Bpa for Spring Wheat, 39 Bpa for Durum
The Wheat Quality Council's 2022 Hard Spring Wheat and Durum Tour ended Thursday, July 28, in Fargo, North Dakota. After three days of scouting fields in North Dakota and Minnesota, the total weighted average yield estimate for spring wheat is 49.1 bushels per acre (bpa), while durum finished at an estimated 39 bpa.
The yield projections for both crops were the second highest for the tour since 2008. In 2015, participants estimated spring wheat and durum at 49.9 and 39.2 bpa, respectively.
This year's tour yield estimate for spring wheat is higher than USDA's initial national projection of 47 bpa, released on July 12. For durum wheat, USDA's estimate is slightly higher than the tour number at 40.3 bpa.
About 50 tour participants, mostly from the wheat, milling and baking industries and USDA officials, assessed 267 spring wheat and 35 durum fields. Two hard winter wheat fields were also sampled. The vast majority of stops were made in North Dakota, the nation's largest producer of both crops.
WRDA Up for Surprise Vote – And Passes
Today, the U.S. Senate voted overwhelmingly to pass the Water Resources Development Act by a vote of 93-1. The legislation contains a provision that would permanently adjust the cost-share ratio for Inland Waterways Trust Fund (IWTF) projects from the current 65% general revenues/35% IWTF to 75% general revenues/25%. This cost-share ratio change was the American Soybean Association’s top priority in the legislation.
Cost share allocation changes for inland waterways projects often reduce overall project costs and allow projects to be completed faster—allowing communities and industries to realize the economic benefits of a project more quickly.
In June, the House of Representatives passed its version of WRDA by a vote of 384-37. This bill did not include the same adjustment to the cost-share allocations for IWTF projects. The House and Senate will now begin conference negotiations to reconcile the differences between the two bills.
ASA will continue to support the Senate provision to adjust the cost-share allocation, as it will make significant progress in addressing the current backlog of construction projects along the inland waterways system. Completing this backlog of construction to resolve bottlenecks and slow-downs along the system will help alleviate supply chain issues. The strength of America's farm economy relies on the efficiency of its inland waterways system.
NGFA commends Senate for passing WRDA 2022
The National Grain and Feed Association (NGFA) commended the Senate today for passing by 93-1 the Waterways Resources Development Act (WRDA) of 2022, which includes important provisions for modernizing the U.S. waterways infrastructure.
Building on the progress of WRDA 2020, Section 103 of the Senate’s WRDA 2022 amends the cost-share for inland waterway projects to 75 percent general Treasury funds and 25 percent from the Inland Waterways Trust Fund.
“This permanent cost-share change would expedite the modernization of U.S. inland waterways and bolster the ability of NGFA members to fulfill their role in the agricultural value chain to serve American farmers and domestic and global customers,” NGFA President and CEO Mike Seyfert said.
House and Senate lawmakers must conference and pass WRDA 2022 before it can be signed into law. NGFA also emphasized that a final WRDA bill should maintain navigational access to the lower Snake River dams (LSRDs).
“A final WRDA 2022 should neither authorize nor pave the way for the breach or removal of dams in the Columbia-Snake River System, which is the third largest grain export corridor in the world and is crucial to American agriculture’s global competitiveness,” Seyfert said.
Congress has passed a WRDA every two years since 2014. The legislation provides stakeholders with the opportunity to address important navigation, ecosystem, and flood protection issues critical to American industries and communities.
Growth Energy Cheers Biofuel Boosters in Latest Senate Budget Proposal
Growth Energy welcomed the inclusion of key biofuel provisions in the new Senate budget reconciliation proposal. Among other measures, the draft bill would allocate $500 million to infrastructure investments designed to open new markets for higher biofuel blends. It also boosts or extends tax credits for Sustainable Aviation Fuels (SAF), carbon capture, advanced biofuels, and biodiesel and renewable diesel fuels.
“It’s very encouraging to see Senate negotiators continue to recognize key priorities we’ve pushed forward over the last year, including SAF, infrastructure, and other incentives aimed at maximizing the biofuel industry’s contributions to a low-carbon future,” said Growth Energy CEO Emily Skor. “For the U.S. to meet its climate goals, we must quickly expand the volume of low-carbon biofuels available across the entire transportation sector – on the ground, in the air, and at sea. These provisions can jump-start that climate progress, while delivering more savings at the pump, greater long-term energy security, and a welcome economic boon to rural communities.
“We know from experience that this process is far from done, and we continue to review other details of the proposal, but we look forward to continuing our work with champions in the House and Senate to ensure our priorities are reflected in any final package.”
RFA: Inflation Reduction Act Will Benefit US Ethanol Industry
Several provisions within the new Inflation Reduction Act will benefit the U.S. ethanol industry and the communities it serves, the Renewable Fuels Association noted in an initial review of the lengthy legislation.
“At long last, we are pleased to see the new Senate bill on climate change, which recognizes the important role renewable fuels like ethanol can play in a lower-carbon future for this nation,” said RFA President and CEO Geoff Cooper. “Specifically for ethanol producers, the legislation includes provisions that provide funding for clean fuel production, higher biofuel blend infrastructure, enhanced opportunities for ethanol to play a greater role in sustainable aviation fuel, and carbon capture, utilization and storage.”
Cooper noted that RFA members pledged last summer to reach net-zero carbon emissions by 2050 or sooner, and that remains a priority for the organization.
“We’re committed to working with our Congressional champions on both sides of the aisle to ensure the final legislative package supports our members’ efforts to provide American families with lower-cost, lower-carbon fuels that are sourced in America’s heartland and bolster energy security,” Cooper said. “Ethanol has a great story to tell as an important part of the rural economy, creating and supporting hundreds of thousands of jobs, while also reducing emissions and lowering costs to drivers.”
Statement from Agriculture Secretary Tom Vilsack on Inflation Reduction Act
"President Biden and Congress have taken an important, historic step towards easing the burden of inflation on the American public and meeting the moment on climate. If passed, the Inflation Reduction Act will have a meaningful impact on the rural and agriculture communities we serve at The Department of Agriculture.
“Agriculture has long been at the forefront of our fight against climate change. From climate-smart agriculture, to supporting healthy forests and conservation, to tax credits, to biofuels, infrastructure and beyond, this agreement provides USDA with significant additional resources to continue to lead the charge.
“Beyond addressing climate, this bill provides us with an opportunity to make prescription drugs cheaper by allowing Medicare to negotiate lower prices, it will improve our energy security and it will create thousands of new jobs.
“It is critical that the House and Senate act quickly on this important piece of legislation so that we can get to work."
Growth Energy to EPA: Alternative RIN Retirement Schedule Backtracks Effort to Strengthen RFS
Today, Growth Energy submitted comments to the U.S. Environmental Protection Agency (EPA) in response to EPA’s proposed alternative RIN retirement schedule for small refineries. In its proposal, EPA gives all small refineries, whether they submitted a small refinery exemption (SRE) or not, until February 1, 2024, to demonstrate 2020 Renewable Volume Obligation (RVO) compliance using RINS from 2021, 2022, 2023, or 2024.
“The Renewable Fuel Standard has and continues to be one of our nation’s most successful transportation decarbonization policies,” wrote Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley. “The rapid investment and development of biofuels have reduced greenhouse gas emissions by decreasing our dangerous dependence on foreign oil.”
“The RFS program was meant to drive more biofuel blending not for refineries to continually delay meeting their obligations. We can only ensure the goals of the program are met by getting the program back on track with timely and predictable compliance deadlines.”
In the letter, Growth Energy calls on EPA to hold small refineries to a December 1, 2022, deadline for 2020 RVO compliance finalized under EPA’s rulemaking in February 2022. Growth Energy also calls on EPA to eliminate the ability of small refineries to use 2023 and 2024 vintage RINs for their 2020 compliance especially as renewable volume obligations for those years have not yet been proposed or finalized.
The Price of Sustainability: Who Pays?
The food system is moving in the right direction to become more sustainable, but one of the most significant questions to address is how the cost of new sustainability policies and practices will be funded. The issue was discussed during a recent roundtable meeting hosted by the United Soybean Board (USB) and The Center for Food Integrity (CFI). “The Price of Sustainability: Who Pays?” is part of a broader effort from USB and CFI to foster collaboration between U.S. Soy and the food industry.
The small group, that included food companies, soybean farmers and others, discussed efforts that are underway to make food production more sustainable and how the food system can collaborate to achieve its goals. Farmers and USB Directors Tim Bardole, Iowa, and Laurie Isley, Michigan, shared some of the sustainability practices they have undertaken on their farms, such as extensive soil testing, planting cover crops, strip tillage and drone scouting.
“We make these changes because they're the right thing to do. We want to be sustainable because we want to have a long-term impact. We also need to continue to be profitable,” Isley said.
Those practices add expenses to growing a crop at a time when higher fuel and fertilizer prices are squeezing profit margins, she said.
“The crops growing right now are breakeven. If something doesn’t change it’s going to be difficult to maintain some of these practices,” Bardole said.
Food companies are looking at ways to involve the entire supply chain in the effort to improve sustainability. Justin Ransom, senior director of sustainable food strategy at Tyson Foods, said trust and transparency are essential for each member of the supply chain to feel comfortable sharing information in order to understand what processes are effective in each region or supply sector.
“Currently, we have very limited transparency within the industry,” Ransom said. “How do we begin to create transparency in the supply chain, so we can say that we're raising our birds, cattle or hogs with grain that came from the most sustainable production practices and tie it all the way to the consumer?”
“A communication gulf exists between consumers and farmers,” said Hansel New, director of sustainability programs, Dairy Farmers of America. The Cooperative has launched a campaign featuring the “DFA Nerd Herd” to tell the story of dairy farmers and others who are making sustainability happen. New said the food system needs to more clearly understand the resources farmers need to achieve goals – including financial, technical and human resources.
“Farmers can't reasonably be expected to take on that full cost burden,” said New. “We also know that consumers can't take on that full cost burden, particularly vulnerable consumers who are already struggling with rising food costs. There needs to be a third way.”
Markets are changing and the food system needs to be more transparent and traceable, said Jason Clay, senior vice president of markets for World Wildlife Fund. In addition to sharing information about practices and results, those in the food system need to share experiences about the business case for sustainability and how to adapt lessons for themselves. The issue is how to think, not what to think. Adaptation is the name of the game.
“We need to look at the business model in a different way where we don't have winners and losers, but we have partners along the entire value chain to make them more resilient—everyone wins,” Clay said. “Global food supply chains are probably the most inequitable institutions on the planet because the producers have no control.”
Sustainability issues will continue to evolve, but the key, according to Isley, is understanding that there’s not a one-size-fits-all approach.
“What works for me in Michigan may not work in California. It may not work 10 miles from me,” she said. “Regardless, sustainability must be profitable for farmers so we can continue produce and allow the family farm legacy to continue.”
AGCO Reports Second Quarter Results
AGCO, a worldwide manufacturer and distributor of agricultural equipment and solutions, reported its results for the second quarter ended June 30, 2022. Net sales for the second quarter were approximately $2.9 billion, an increase of approximately 2.3% compared to the second quarter of 2021. Excluding unfavorable currency translation impacts of approximately 7.5%, net sales in the second quarter of 2022 increased approximately 9.8% compared to the second quarter of 2021. Reported net income was $2.37 per share for the second quarter of 2022, and adjusted net income (3) , which excludes restructuring expenses, was $2.38 per share. These results compare to reported net income of $3.73 per share and adjusted net income, which excludes restructuring expenses and the reversal of a valuation allowance previously established against the Company’s deferred tax assets in the United States, of $2.88 per share for the second quarter of 2021.
Net sales for the first six months of 2022 were approximately $5.6 billion, an increase of approximately 7.1% compared to the same period in 2021. Excluding unfavorable currency translation impacts of approximately 6.4%, net sales for the first six months of 2022 increased approximately 13.5% compared to the same period in 2021. For the first six months of 2022, reported net income was $4.40 per share, and adjusted net income (3) , excluding impairment charges, restructuring expenses and other related items, was $4.77 per share. These results compare to reported net income of $5.71 per share, and adjusted net income, excluding restructuring expenses and the aforementioned reversal of a valuation allowance of $4.89 per share, for the first six months of 2021.
Second Quarter Highlights
Reported regional sales results: Europe/Middle East (“EME”) (10.3)%, North America +0.7%, South America +86.6%, Asia/Pacific/Africa (“APA”) (5.5)%
Constant currency regional sales results: EME +3.2%, North America +1.4%, South America +77.2%, APA +1.7%
Regional operating margin performance: EME 11.0%, North America 6.9%, South America 16.5%, APA 14.1%
Fully operational within approximately two weeks of May 2022 cyberattack
Q2 production, sales and net income were negatively impacted
Paid a variable special dividend of $4.50 per share as compared to $4.00 in 2021
Maintained full-year outlook for adjusted earnings per share
“AGCO delivered solid results in the second quarter by remaining focused on our farmer-first strategy, while effectively managing the challenges associated with the cyberattack, currency headwinds and ongoing supply chain constraints,” stated Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer. “Our results reflect substantial price increases to combat rising material costs, higher logistics expenses, and other manufacturing inefficiencies. Farm fundamentals remain favorable and are supporting healthy order boards that remain ahead of last year’s level. Our farmer-first approach and expanding precision ag portfolio are contributing to strong end-market demand and robust growth in our margin-rich businesses.”
Mr. Hansotia continued, “Our team’s ability to execute and adapt to the challenging environment along with the robust market conditions gives us confidence in delivering our 2022 outlook, which includes record sales, margin expansion and record earnings. These results reinforce our plan to continue investing in our smart farming solutions and enhanced digital capabilities to support further growth and margin expansion.”
Friday, July 29, 2022
Thursday July 28 Ag News
IANR PROGRAM EXPANDS UNDERGRAD OPPORTUNITIES FOR SCIENCE, AG STUDY