The Andersons, Inc. (ANDE): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear, actionable breakdown of the forces shaping The Andersons, Inc. (ANDE) right now. The short answer is that while the Grain and Ethanol segments are riding a wave of renewed policy support-like the Renewable Fuel Standard (RFS) mandates-the core challenge remains managing extreme commodity price volatility and the legal maze of Environmental Protection Agency (EPA) compliance. We need to map these risks to clear actions, because it's defintely not a set-it-and-forget-it investment. This PESTLE analysis cuts straight to the point, showing you precisely how the 2025 landscape-from US Farm Bill uncertainty to advancing precision agriculture-will impact their bottom line.

The Andersons, Inc. (ANDE) - PESTLE Analysis: Political factors

You are navigating a political landscape in 2025 that is defined by uncertainty in domestic farm policy and aggressive, volume-crushing trade tariffs. The core takeaway is this: stable, mandated demand from the Renewable Fuel Standard (RFS) is a critical anchor for your Renewables segment, but the Trade segment is taking a direct hit from geopolitical friction, and the Farm Bill's delay is creating operational guesswork for your farmer customers.

Here's the quick math: The stability of a 15 billion gallon ethanol mandate is a powerful offset to the 40% drop in US agricultural exports to China you've seen in the last year. You need to focus on maximizing the new, policy-driven opportunities in Sustainable Aviation Fuel (SAF) to offset the trade risk.

US Farm Bill negotiations create uncertainty for crop subsidies and trade programs

The lack of a new, comprehensive US Farm Bill in 2025 is creating a policy vacuum for your Trade and Nutrient & Industrial segments. The 2018 Farm Bill was extended for a year through September 30, 2025, but a full new bill is stalled due to partisan friction, especially after the 'One Big Beautiful Bill Act' (OBBBA) reconciliation package addressed commodity programs and crop insurance with deep cuts to other areas. This is defintely a source of anxiety for your farmer-customers, who rely on these programs for risk management.

The uncertainty impacts planting and input decisions, which directly affects your grain merchandising and nutrient sales. To be fair, Congress did pass the American Relief Act, 2025, which included $31 billion in disaster and economic aid for farmers, with $10 billion earmarked for one-time economic assistance for row crop producers for the 2024 crop year. This ad-hoc aid provides a temporary safety net, but it doesn't replace the long-term certainty of a five-year bill.

Renewable Fuel Standard (RFS) mandates drive demand for ethanol, a core business segment

The Renewable Fuel Standard (RFS) is the single most important piece of policy for The Andersons, Inc.'s Renewables segment, which produced 506 million gallons of ethanol (as of December 31, 2024 data). The EPA's 'Set 1 Rule' finalized the required volumes for 2023 through 2025, providing a predictable, mandated market floor.

The conventional renewable fuel volume obligation (RVO), which is primarily corn ethanol, is set at 15 billion gallons for both 2024 and 2025. This guaranteed demand stabilizes ethanol margins and supports the utilization of your ethanol assets, which is crucial given the segment's strong contribution to the company's performance, even as overall Q2 2025 adjusted EBITDA declined to $65 million from $98 million year-over-year. The total renewable fuel volume for 2025 is mandated at 22.33 billion gallons, ensuring continuous pressure to blend biofuels.

Geopolitical trade tensions, especially with China, affect global grain export volumes

The escalation of US-China trade tensions in 2025 is the primary headwind for your Trade segment, which handles 33 million tonnes of commodities. The imposition of new tariffs, with rates on select Chinese imports rising as high as 125%, has prompted swift retaliation from Beijing, causing a dramatic shift in global grain flows.

The consequences for US agriculture are severe and immediate:

• US agricultural exports to China fell nearly 40% between June 2024 and June 2025.
• US ag exports to China dropped by over $5 billion between January and April 2025.
• Bulk grain shipments to China plunged by 63% (or 10.1 million tonnes) in the first eight months of 2025 compared to the previous year.

China has essentially stopped placing new crop export orders for US soybeans for the 2025-2026 season, pivoting instead to South American suppliers. This forces The Andersons, Inc. to find alternative buyers in markets like Mexico, Japan, and Colombia for the substantial US corn and soybean surplus, putting downward pressure on domestic grain prices and elevation margins.

Government support for sustainable aviation fuel (SAF) creates new ethanol market opportunities

A significant opportunity is emerging from government policy supporting Sustainable Aviation Fuel (SAF), which uses ethanol as a key feedstock. The federal government's SAF Grand Challenge aims for 3 billion gallons per year of domestic SAF production by 2030, creating a massive new demand channel for ethanol producers.

The key financial incentive is the Section 45Z Clean Fuel Production Tax Credit (CFPC), which offers a credit of up to $1.75 per gallon of SAF produced, and was extended through December 31, 2029. This long-term, high-value credit makes the alcohol-to-jet (ATJ) pathway economically viable. SAF production capacity increased to about 1.26 million gallons per day by February 2025, and with commercial-scale ethanol-to-jet facilities now operational, your Renewables segment has a clear, policy-backed path to diversify its revenue beyond the saturated gasoline market.

The Andersons, Inc. (ANDE) - PESTLE Analysis: Economic factors

You're looking at The Andersons, Inc. (ANDE) and trying to figure out how the broader economy is actually hitting their bottom line, and honestly, 2025 has been a real tightrope walk. The core takeaway is that while the Renewables segment is performing well, the newly combined Agribusiness segment is getting squeezed hard by the combination of soft commodity prices, high interest rates, and stubborn input cost inflation. It's a classic margin compression story.

Extreme volatility in global commodity prices (corn, wheat) directly impacts Agribusiness segment margins.

The Andersons' Agribusiness segment, which includes the former Grain operations, is highly exposed to the wild swings in global commodity markets. In the first quarter of 2025, the Agribusiness segment reported a pre-tax loss of $10 million, which management attributed directly to stagnant market conditions and global trade uncertainties that disrupted typical grain flows. This is a clear signal that the company's trading and merchandising activities are facing headwinds.

Here's the quick math: strong 2025 crop production, especially for corn and soybeans, has led to oversupplied grain markets. Oversupply means lower prices, which translates to thinner margins per unit for a company focused on commodity merchandising. Even with high volumes, persistently low prices squeeze the profit out of every bushel they handle. This pressure is compounded by the vulnerability to 'falling feed values' and 'fluctuating crush margins' in the integrated supply chain. The market is defintely challenging right now.

High interest rates increase the cost of capital for inventory financing and large infrastructure projects.

The Federal Reserve's policy, even with a late-2025 rate cut, still keeps borrowing costs elevated for the agricultural sector. For The Andersons, this is a dual burden. First, it increases the cost of financing the massive amount of working capital tied up in grain and nutrient inventory. Farm-level operating loans, which influence the cost of capital for the entire supply chain, are projected to remain in the 7-8% range in 2025. Higher rates mean a higher cost of carry for the ~290 million bushel grain storage capacity they operate.

Second, high rates hit their strategic growth plans. The company is committed to significant capital expenditures, with a full-year 2025 expectation of approximately $200 million, excluding acquisitions. This capital is funding major projects like soybean meal export capacity at Port Houston. While their balance sheet is strong-they remain below their long-term debt-to-EBITDA target of less than 2.5 times-every percentage point on their long-term debt makes these large infrastructure projects more expensive and harder to justify on a Net Present Value (NPV) basis.

Inflationary pressure on key inputs like natural gas and fertilizer raises operating costs.

Inflation is not just a consumer problem; it's a direct hit to The Andersons' cost structure. Even as the general Consumer Price Index (CPI) eased to 2.9% year-over-year in August 2025, the cost of specific agricultural inputs remains volatile. The third quarter of 2025 saw a significant rise in operating costs that cut the company's net income in half, from $51 million to $26 million year-over-year.

The cost of sales rose by $63 million and operating and administrative expenses climbed by $52 million in Q3 2025. A major culprit is energy: natural gas is a critical input for fertilizer production (Plant Nutrient) and is a significant operating expense for ethanol (Renewables). The U.S. Energy Information Administration (EIA) predicts the average Henry Hub spot price for natural gas will be around $3.10/MMBtu in 2025, which is a projected $0.90 increase over the 2024 average. This is a clear cost-push factor.

• Cost of Sales: Increased by $63 million in Q3 2025.
• Operating/Admin Expenses: Climbed $52 million in Q3 2025.
• Natural Gas Price: EIA predicts $3.10/MMBtu average for 2025.

Recessionary fears could dampen demand for discretionary products in the Agribusiness segment.

The fear of a recession, or at least a significant agricultural downturn, directly impacts the demand for the more discretionary products within the Agribusiness segment, formerly Plant Nutrient. These include specialty fertilizers and turf care products. Ag lenders surveyed in late 2025 project that only about 52% of U.S. farm borrowers will be profitable this year. That's a sharp decline and a strong indicator of financial stress.

When farm incomes are under pressure from soft commodity prices and high input costs, farmers immediately reduce non-essential spending. They might cut back on premium, high-margin specialty nutrients, or defer capital expenditures on machinery and equipment. The Andersons has seen year-over-year improvement in its nutrient business in 2025, but this general tightening of the farm economy is a major risk to sustained volume and margin growth in that part of the portfolio.

The Andersons, Inc. (ANDE) - PESTLE Analysis: Social factors

Growing consumer demand for traceable and sustainably sourced food products.

You are seeing a fundamental shift in what consumers are willing to pay for, and it is no longer just about price; it's about providence. The Andersons, Inc. operates in a market where end-consumers-and, critically, the large food manufacturers who are your direct customers-are demanding full supply chain transparency (traceability). The global food traceability market, which tracks this transparency, is projected to be valued at approximately $25.54 billion in 2025, reflecting a compound annual growth rate (CAGR) of 9.6%. This isn't a niche trend anymore; it's a core business requirement.

North America is leading this charge, expected to hold a 32.2% share of the global food traceability market in 2025. For The Andersons, Inc., this means that its Trade and Nutrient & Industrial segments must integrate advanced tracking technologies like blockchain or IoT sensors to verify claims about sustainable sourcing and regenerative agriculture (regenerative ag). The company is already focused on this, listing 'Traceability' and 'Regenerative ag' as key areas in its 2025 Sustainability Review. If you don't offer this data, you defintely lose the premium-margin business.

Labor shortages in the agricultural sector increase pressure on wages and operational efficiency.

The agricultural labor crisis is a near-term risk that directly impacts the cost of goods sold for The Andersons, Inc.'s entire supply chain. The U.S. agricultural industry is projected to need approximately 2.4 million more farmworkers in 2025, a gap that is driving significant wage inflation. This pressure is most acute in labor-intensive specialty crops, but it ripples through the entire supply chain, including logistics and processing, which are core to the company's Trade and Renewables segments.

Here's the quick math: total labor costs across the U.S. agricultural industry are forecast to exceed $53 billion in 2025. For small farms, which are integral to the company's origination network, annual wage expenses are rising by roughly 30%, forcing them to make hard choices about what crops to plant. This structural labor shortage means The Andersons, Inc. must invest more heavily in automation and higher wages to maintain operational efficiency and secure grain supply.

Public and investor focus on Environmental, Social, and Governance (ESG) performance is intensifying.

Investor scrutiny on ESG (Environmental, Social, and Governance) is no longer a peripheral issue; it's a material financial factor. Major institutional investors like BlackRock are integrating these metrics into their capital allocation decisions, so your social performance directly affects your cost of capital and shareholder relations. The Andersons, Inc. is addressing this by reporting against frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD), Global Reporting Initiative (GRI), and Sustainability Accounting Standards Board (SASB).

The company's focus on the 'S' in ESG includes employee safety and engagement. For example, The Andersons, Inc. achieved an Environmental Regulatory Incident Rate (ERIR) of 0.57 in 2024, which was better than their 2025 target of <0.91. This shows a clear, measurable commitment to operational responsibility. Still, the company must continue to demonstrate progress on social factors like diversity and inclusion, which are key to becoming an 'employer of choice' and mitigating the labor risks discussed above.

Shifting demographics in rural areas affect the long-term availability of skilled farm labor.

The demographic reality in rural America presents a significant structural challenge for securing the next generation of skilled farm and agribusiness workers. The average age of a U.S. farmer is nearing 60, and there are four times as many producers aged 65 or older than those under 35. This aging workforce means the pool of skilled, experienced labor for the company's grain and nutrient operations is shrinking.

The civilian labor force in rural counties has actually declined since the Great Recession, even as the national labor force grew by almost 17% between 2000 and 2023. This is a talent pipeline problem, not just a wage problem. The long-term solution requires The Andersons, Inc. to invest in training and technology to offset the decline in manual labor and attract younger, tech-savvy workers.

• Average age of US farmer: Nearing 60.
• Decline in farm employment since 1969: 35% nationwide.
• Rural labor force trend: Declined since the Great Recession.

The company's strategy must account for this by prioritizing roles that require technical skills-like precision agriculture and data analytics-over traditional manual labor, because the latter is simply not coming back in the numbers needed.

The Andersons, Inc. (ANDE) - PESTLE Analysis: Technological factors

The Andersons, Inc.'s competitive edge in 2025 is defintely tied to how quickly it adopts technology across its Agribusiness and Renewables segments. We are seeing a shift from capital-intensive physical assets to data-intensive digital platforms. The near-term opportunity is clear: turn the company's massive physical scale-specifically its 290 million bushel grain storage capacity and its position as the 5th largest U.S. Ethanol Producer-into a highly efficient, low-carbon digital supply chain. If you don't embed the technology, the physical assets become a liability, not an advantage.

Increased adoption of precision agriculture tools for real-time yield and nutrient management.

Precision agriculture (PA) is no longer a niche concept; it's a core operational necessity, and The Andersons is positioned to capitalize through its Nutrient & Industrial segment. The U.S. precision farming market alone is valued at approximately $4.37 billion in 2025, growing at a CAGR of about 13.49% through 2034. For The Andersons, this means using its farm centers to push data-driven solutions like Variable Rate Technology (VRT) and advanced soil sensors to its grower-customers. This helps farmers apply inputs like Nitrogen, Phosphate, and Potash (NPK) fertilizers precisely where needed, which both cuts their costs and improves the carbon intensity (CI) score of the resulting grain-a huge win for ethanol production.

Here's the quick math: better nutrient management directly influences the carbon footprint of the corn feedstock. A lower-CI corn is more valuable for The Andersons' Renewables segment, which is already focused on improving plant production efficiency and lowering carbon intensity scores. The company's ability to offer a full-service, data-backed solution-from selling the 1.9 million tons of NPK it sells annually to merchandising the final crop-is its digital differentiator.

Automation and robotics in grain handling and storage improve operational throughput.

The Trade segment, which manages the company's extensive network of approximately 130 facilities and 290 million bushels of grain storage capacity, is undergoing a quiet revolution driven by automation. Industry-wide, automated grain storage systems have been shown to reduce post-harvest losses by as much as 25% in North America, a critical factor when dealing with such high volumes. The focus is on two key areas:

• Real-Time Inventory and Quality: Deploying Internet of Things (IoT) sensors for continuous, real-time monitoring of grain moisture and temperature within silos, which prevents spoilage and preserves quality.
• Logistics Efficiency: Automating processes like truck scale ticketing, which can cut transaction times by up to 60% compared to manual entry, significantly improving the operational throughput of the grain elevators.

This automation is crucial for maintaining the quality of the 33 million tonnes of commodities The Andersons trades, ensuring that the corn delivered to its ethanol plants meets the highest specifications for efficient conversion.

Advanced fermentation and carbon capture technologies boost ethanol production efficiency.

As the 5th largest U.S. Ethanol Producer, The Andersons is making significant investments to future-proof its Renewables segment, which produces approximately 506 million gallons of ethanol annually. The key technology is Carbon Capture, Utilization, and Sequestration (CCUS). Ethanol fermentation produces a nearly pure stream of carbon dioxide, making it relatively inexpensive to capture compared to other industrial sources.

The financial incentive is immediate and material: the company is anticipating a $10 million to $15 million EBITDA benefit from the 45Z clean fuel production tax credits in the fourth quarter of 2025 alone. This credit is tied directly to the carbon intensity score of the fuel. To achieve the lowest possible score and maximize the credit, The Andersons is focused on:

• Lowering CI Scores: Investing to further improve plant production efficiency for ethanol and co-products.
• CCUS Development: Actively participating in regulated and voluntary carbon credit markets and strategic investments to monetize carbon abatement.
• Feedstock Optimization: Leveraging its Agribusiness relationships to source lower-carbon intensity feedstocks, a process that relies on precision agriculture data.

Use of predictive analytics to optimize logistics and manage complex supply chain risks.

The entire business-from farm input to fuel output-is a logistics challenge, and predictive analytics is the tool to manage it. By 2025, the global predictive analytics market for supply chains is seeing significant investment, with 91% of organizations considering AI and predictive analytics essential. The Andersons uses this technology to streamline its complex storage and logistics systems across North America.

This is how they use data to make real-time decisions:

The ability to integrate real-time data from its grain elevators and ethanol plants with external market signals allows The Andersons to transition from reactive management to a proactive, data-driven strategy. This is a must-do to maintain margin in volatile commodity markets.

The Andersons, Inc. (ANDE) - PESTLE Analysis: Legal factors

Potential Litigation Risks Related to Commodity Trading and Contract Disputes

You need to be acutely aware of the litigation environment, especially in commodity trading, because the stakes are huge and the legal process is slow. The most immediate risk is the ongoing class action lawsuit, Dennis v. The Andersons Inc., which alleges market manipulation in the Soft Red Winter (SRW) wheat futures market. This isn't just a historical footnote; the court granted class certification in part on May 7, 2025, allowing the case to proceed with a defined class.

This class action covers individuals and entities who traded specific Chicago Board of Trade (CBOT) SRW wheat futures and options contracts during a period in late 2017. The core issue is the potential for significant financial liability tied to the company's Trade and Renewables segment, which merchandised a total of 33 million tonnes of commodities as of December 31, 2024. Honestly, the sheer volume of their trading operations means they are defintely exposed to this kind of contract and market-based legal risk all the time.

Here is a quick summary of the key litigation exposure:

• Case: Dennis v. The Andersons Inc. (No. 1:2020cv04090).
• Status (2025): Class certification granted in part on May 7, 2025.
• Claims: Violations of the Commodity Exchange Act, Sherman Act (antitrust), and unjust enrichment.

Strict Environmental Protection Agency (EPA) Regulations on Ethanol Production

The Andersons operates four ethanol plants with a total annual production capacity of 500 million gallons, and this scale means their regulatory burden under the EPA is substantial. They must continuously comply with the Renewable Fuel Standard (RFS) and a host of federal and state laws governing air emissions, water quality, and hazardous materials. What this means for the bottom line is that any change in RFS blending mandates or carbon intensity (CI) scoring can hit earnings fast. The Renewables segment, which includes ethanol, reported a strong first quarter 2025 pretax income of $25 million, but that performance is directly contingent on maintaining regulatory compliance and operational efficiency.

The company's proactive stance on emerging regulations is a key opportunity, though. They have filed a Class VI well permit application with the EPA for potential carbon sequestration at their Clymers, Indiana, facility. This move is an investment to lower their carbon intensity score, a critical factor for long-term competitiveness under evolving environmental law. While compliance costs did not materially affect 2024 earnings, the investment required for this kind of carbon capture infrastructure is significant and represents a forward-looking legal/environmental capital expenditure.

Compliance with Complex State-Level Laws Governing Fertilizer and Nutrient Application

The Nutrients business, which sold 1.9 million tons of product in 2024, faces a patchwork of state-level regulations, particularly those aimed at reducing agricultural runoff and protecting waterways from excess nitrogen and phosphorus.

To mitigate the legal and reputational risk of non-compliance, The Andersons actively participates in industry-led programs. They adhere to the 4R Nutrient Stewardship program (Right Source, Rate, Time, and Place), which is the industry standard for best practices in fertilizer application. They also align with the ResponsibleAg organization to ensure their facilities meet environmental, health, safety, and security regulations. This is a smart move, because a single state-level fine for nutrient runoff can be a PR disaster and trigger costly operational changes across multiple jurisdictions.

OSHA Standards for Grain Handling Facilities Require Continuous Investment in Safety Protocols

Operating a network of grain facilities with approximately 290 million bushels of storage capacity exposes The Andersons to stringent Occupational Safety and Health Administration (OSHA) standards, specifically those for grain handling. These rules require continuous investment in safety protocols to prevent hazards like grain dust explosions and entrapment.

A concrete example highlights the ongoing risk: an OSHA citation was issued on January 10, 2020, for a serious violation at the Toledo, Ohio, facility for failure to implement an emergency action plan for grain entrapment/engulfment hazards. The initial and current penalty for this serious violation was $13,260.00. While this specific penalty is small relative to the company's size, it underscores the constant need for capital expenditure on safety upgrades and training to avoid more severe penalties or, worse, tragic accidents. Infrastructure upgrades, like the new conveyance system and ship loading tower at the Port Houston expansion, are also directly tied to meeting modern OSHA and safety standards.

The Andersons, Inc. (ANDE) - PESTLE Analysis: Environmental factors

Climate change-driven weather extremes (droughts, floods) directly impact crop yields and supply.

You can't talk about agriculture without talking about weather, but the volatility driven by climate change is now a primary business risk. The Andersons, Inc. (ANDE) explicitly flags climate change as an emerging risk in its annual assessment matrix, and for good reason: extreme weather directly impacts the supply chain for its Trade and Renewables segments.

The near-term risk is quantified by recent academic findings. For instance, a May 2025 Stanford study found that intensified warming and air dryness have caused grain yields for key crops like maize (corn) to decline by 4% to 13% in recent years, overshadowing any potential benefits from carbon dioxide fertilization. This kind of yield shock translates immediately into volatile grain prices and reduced throughput at The Andersons' grain elevators.

Looking ahead, the long-term outlook is even more challenging. A June 2025 study projects that even if global emissions were to fall to net zero immediately, an 8% reduction in global crop yields is likely inevitable by 2050 due to legacy carbon in the atmosphere. This reality forces a strategic focus on supply chain resilience and advanced agronomy.

Here's the quick math on the risk:

• A poor yield year reduces the volume of corn and soybeans moving through the Trade segment.
• Lower-quality grain increases processing costs for the Renewables (Ethanol) segment.
• The company's Q1 2025 Agribusiness segment faced a pretax loss of $10 million on stagnant market conditions, showing the immediate financial sensitivity to market turbulence.

Increased scrutiny on water usage, especially in regions facing water scarcity.

Water scarcity is becoming a critical operational constraint, especially for the ethanol production process. The Andersons is responding to this scrutiny by establishing clear metrics and long-term targets for water management across its facilities. They completed a water risk assessment in 2024 to set a baseline for future targets, which is a necessary first step.

Their long-term commitment is to reduce water intensity usage by 10% within their highest consuming facilities by 2035. While that's a long runway, the Ethanol segment is already making progress, having reduced its water intensity by 3% in 2024. This focus is defintely crucial in the Midwest, where competition for water resources is rising and regulatory pressure on industrial users is increasing.

The company's commitment extends beyond its own walls, including support for water quality research, such as for the Lake Erie Foundation and The Ohio State University's Stone Laboratory, demonstrating a proactive stance on regional water stewardship. You need to see these investments as a form of risk mitigation against future regulatory fines or operational restrictions.

Focus on reducing the carbon intensity of ethanol production to qualify for low-carbon fuel credits.

The push for low-carbon fuel standards, particularly in states like California and the potential for a national Clean Fuel Standard, makes reducing the Carbon Intensity (CI) score of ethanol a major opportunity. The Andersons' Renewables segment is actively pursuing low CI ethanol to capture these valuable low-carbon fuel credits.

While specific 2025 CI scores are not published due to regulatory uncertainty delaying specific objectives, the company is investing heavily in operational efficiency as a proxy for CI reduction. These capital projects are already delivering measurable results:

• Combined Heat and Power (CHP) Systems at the Albion, Michigan, and Greenville, Ohio, facilities reduced total electricity consumption for those two sites by 15% in 2024.
• Fermenter upgrades at the Clymers, Indiana, and Albion, Michigan, facilities improved energy efficiency and reduced electricity usage.

The Renewables segment's strong operating performance led to a Q1 2025 pretax income of $25 million, up from $24 million in Q1 2024, which is a clear indicator that their efficiency focus is paying off financially. Plus, the company continues to explore Carbon Capture and Sequestration (CCUS) for biogenic $\text{CO}_2$ as the ultimate path to ultra-low CI scores.

Initiatives for soil health and carbon sequestration create new revenue streams for the Plant Nutrient segment.

The convergence of corporate net-zero targets and farmer demand for better soil management is creating a new, high-margin revenue opportunity for the Plant Nutrient segment (now part of Agribusiness). The Andersons is positioning itself as a key enabler of regenerative agriculture practices, which include cover cropping, no-till farming, and improved nutrient management.

This strategy is twofold: it secures a supply of lower carbon intensity corn for their ethanol plants, and it creates a service-based revenue stream. The company is offering bespoke carbon in-setting projects and programs to help its Consumer Packaged Goods (CPG) customers meet their Scope 3 greenhouse gas (GHG) mitigation goals.

This is a high-growth area, even if the specific 2025 revenue from carbon credits is not yet broken out. The Plant Nutrient segment's manufactured product lines led to a year-over-year improvement in Q4 2024, which shows the value of their specialized offerings. The Plant Nutrient segment is shifting from a commodity supplier to a strategic partner in the carbon-smart supply chain.

The table below summarizes the core environmental actions and their financial implications in 2025: