b'CORTEVAS SPINCO AIMS TO TRANSFORM GLOBAL WHEAT MARKETS WITH 2027 HYBRID LAUNCHSeed spinoff focuses on advanced genetics as agencies forecast rising food demand and shifting regulatory landscapes for crop technology.By Marc Zienkiewicz, Seed World Canada Senior EditorCORTEVA INC.S PLAN to break itself into two publicly traded companies is drawing close attention from investors who see the move as a bet on where the next decade of agricultural returns will come from. CEO Chuck Magro says the splitcreating a crop protec-tion company (temporarily called New Corteva) and a seed-focused entity (SpinCo)positions the latter to compete in a market where seed genetics are expected to drive outsized growth.The separation comes as global agencies warn that agricul-tural output is failing to keep pace with expected demand. The FAOs latest State of Food Security and Nutrition in the World report projects a significant increase in food needs by 2050, a trend that could place pressure on major seed markets. The OECD-FAO Agricultural Outlook anticipates steadily rising demand for cereals and oilseeds, suggesting the world will rely increasingly on genetic gains rather than acreageCorteva is headquartered in Indianapolis, Ind.expansion.Investors and analysts say Cortevas decision reflects theseCorteva has not yet disclosed SpinCos standalone valuation structural tailwinds. Yield stagnation in key crops, highlightedtarget, but analysts at major U.S. banks say pure-play genetics in CIMMYTs global wheat research, and climate-drivenbusinesses often trade at higher forward revenue multiples than disease risks identified in the International Plant Protectiondiversified ag-inputs companies, due in part to lower regulatory Conventions (IPPC) Sixth Assessment Report point to geneticsvolatility and longer product cycles.as one of the few levers with long-term pricing power. These dynamics, observers say, could create a meaningful We believe were about to demonstrate this forward think- divergence between the two future companies, with SpinCo ing once again, Magro told analysts in a phone call after thepotentially commanding a premium multiple if execution company made the official announcement of the split. This isholds.about tomorrow.Hybrid Wheat as a Revenue AcceleratorSpinCos Value Proposition: A Pure-Play Genetics Business in aThe 2027 debut of Cortevas hybrid wheat program is expected Consolidating Market to be an early catalyst for SpinCo. The company says the tech-SpinCo will enter the public market with several advantages:nology could boost yields by 10% to 20%, potentially unlock-one of the industrys deepest germplasm libraries, a direct-to- ing multi-billion-dollar long-term revenue potential.farmer distribution channel, quality seeds that have historicallyThe FAO estimates that even a 10% global yield increase supported premium pricing, and a leading presence in genecould translate into enough calories to feed hundreds of mil-editing. The unit also retains the Pioneer brand, which analystslions of people annually. In financial terms, analysts say such note carries strong pricing durability in North America andgains could support strong adoption curves in North America Latin America. and parts of Europe and Asia, particularly if input margins Specialized agtech companies with defensible R&D moatsremain consistent with existing hybrids.are capturing the highest growth multiples, McKinsey wrote inWe believe that this is a multi-billion-dollar revenue oppor-its recent Agriculture on the Brink analysiscontext investorstunity for SpinCo, Magro said, calling the product a mean-say is central to understanding Cortevas timing. ingful step towards global food security.4 SEEDWORLD.COM/CANADA JANUARY 2026'