Benjamin Mayhew's questions to Andersons Inc (ANDE) leadership • Q4 2024
Question
Benjamin Mayhew from BMO Capital Markets questioned the state of the renewable diesel feedstock market post-45Z guidelines, the attractiveness of the ethanol plant M&A environment, and the general sentiment and merchandising outlook for the U.S. farmer in 2025.
Answer
President and CEO William Krueger noted that while the renewable diesel feedstock market has seen more activity, caution persists due to tax credit uncertainty. Regarding ethanol M&A, he stated that prices for plants with carbon sequestration access have risen, reinforcing the company's disciplined strategy of targeting large, technologically advanced plants in key origination geographies. Krueger assessed the U.S. farmer's outlook as optimistic, citing recent price rallies and good planting conditions, which should benefit the merchandising environment.