Guidance Confidence
Q: How confident are you in meeting targets amid challenges?
A: Management expressed strong confidence in achieving their full-year EBITDA guidance of $3.5 billion to $3.7 billion, citing a healthy agricultural economy, steady on-farm demand, and effective cost reduction initiatives targeting $350 million to $450 million this year. They highlighted the strong performance of the Seed business, especially in North America, with organic growth fueled by new technology adoption. They anticipate the Crop Protection business to improve in the second half, with benefits from cost deflation and productivity gains.

Seed Strategy Amid Dicamba Uncertainty
Q: How does dicamba uncertainty affect your seed strategy?
A: Management is closely monitoring the situation around dicamba labeling for 2025. While this year's impact was minimal, they anticipate some farmers currently using Xtend soybeans may switch to their Enlist system next year. They've prepared for potential shifts by increasing supply of their B-Series and A-Series products. Despite uncertainties, they emphasize their strong portfolio and ability to meet customer needs, with over 100 licensees accessing their technology.

Brazil Crop Protection Market
Q: What's the outlook for generics in Brazil Crop Protection?
A: Generic imports into Brazil have stabilized to normal rates after previous fluctuations. While new capacity for active ingredients coming off patent is emerging, Corteva focuses on selling differentiated products and value-added services. Management sees no structural changes in market fundamentals and expects the Brazilian market to trend positively, with global Crop Protection industry growth returning in 2025.

Impact of Corn Disease in Argentina
Q: How does corn stunt disease in Argentina affect you?
A: While corn stunt disease has impacted some farmers' yields, Corteva's seed production was not affected. Management is working closely with customers as they assess planting decisions for the next season, acknowledging that farmers may reconsider corn acreage. The situation could influence demand, but they are prepared to support farmers with their experience dealing with this disease from Brazil.

Royalty Benefits and FX Impact
Q: Can you update on royalty savings and FX effects?
A: They are on track to achieve the $100 million royalty benefit target for 2024, primarily weighted to the first half due to North American sales. Regarding FX, the first quarter was negatively impacted by the Turkish lira, but pricing mostly offset this. They anticipate a small currency benefit in the second half of the year.

Crop Protection Pricing Dynamics
Q: What's driving Crop Protection pricing and margins?
A: The Crop Protection market is experiencing competitive pressures due to global destocking. Management notes improved conditions in the U.S. and progressing destocking in Europe and Brazil. Despite price competition, their products, including new innovations and the Spinosyns franchise, continue to outperform the market. For Enlist, they expect high demand and spray rates around 80%, with volume growth anticipated this year.

Farmer Input Trade-Down
Q: Are farmers trading down due to tighter budgets?
A: Management hasn't observed significant trade-down in seed or crop protection inputs. Farmers prioritize maximizing yield per acre, as the last bushels contribute to their profit. Even in challenging conditions, as seen in South America, demand for their biologicals remained strong, reflecting their products' core value in crop plans.

2025 Performance Drivers
Q: Are 2025 targets and drivers still intact?
A: Management reaffirmed their 2025 EBITDA target of $3.9 billion to $4.4 billion. Key drivers include net pricing gains led by the Seed business, Crop Protection gains from new products and Biologicals, and controllable cost improvements such as royalty benefits and deflation. They foresee increased R&D investment but maintain that the overall financial framework remains intact, building on the 2024 guidance midpoint.