b'WHY HYBRID WHEAT COULD RESHAPE GLOBAL GRAIN MARKETSHybrid wheat has long been viewed as one of the most consequential yet elusive goals in global crop science. If the technology finally achieves commercial scale in 2027, analysts say it could shift economics for farmers and reshape global grain markets.Heres why:Yield Gains Where the World Needs Them MostWheat provides roughly 20% of global caloric intake, according to FAO data. Yet yields have grown more slowly than those of corn and soybeans. CIMMYT says productivity has stagnated in key regions, even as global demand rises. Hybrid wheat could boost yields by 10% to 20%, Corteva sayslevels of improvement that traditional breeding has struggled to match.A Hedge Against Climate VolatilityWheat is grown in more climates than any other major crop, making it highly exposed to weather-related shocks. The IPCC warns that rising heat and disease pressure could cut global wheat yields by double digits if adaptation lags. Hybrid vigour offers improved resilience to drought, heat and diseasetraits that grow in value as climate variability increases.A Potential Supply StabilizerOECD-FAO forecasts show rising wheat consumption in Africa and Asia through the next decade. Even modest yield increases could ease the supply gap for regions where expanding acreage is difficult or environmentally risky. A 10% global yield gain could add the equivalent of tens of millions of additional tons annually.New Profit Opportunities for FarmersCanadas own Chuck Magro will lead SpinCo. Hybrid wheat typically commands a premium price, but it can generate higher net returns if yield performance is consistent. For investors, hybrid wheat could become SpinCos firstIndustry analysts note that farmers in North America and Europe have marquee product with clear visibility into multi-year revenueadopted hybrid barley and hybrid rice for similar reasons. If early stackinga key factor in setting valuation expectations soonperformance data holds, SpinCos hybrid wheat could offer farmers a after the IPO. materially higher return on investment.A New Revenue Engine for the Seed IndustrySpinCos Expansion Case: The Optionality Investors Value The global wheat seed market is historically less lucrative than corn Beyond corn and soybean seeds, SpinCo will target growth inor soy due to lower seed replacement rates and weaker hybridization wheat, cotton, rice and specialty cropsareas that OECD-FAOpotential. If hybrid wheat technology succeeds, it could open a multi-forecasts suggest will see differentiated demand trajectories in thebillion-dollar global hybrid wheat market. years ahead. A Platform for Trait StackingSpinCo will also look to expand on new opportunities inHybrid systems allow more efficient stacking of traits such as disease wheat, cotton, rice and other products where genetics can play aresistance, nitrogen-use efficiency and drought toleranceareas transformative role, Magro said. In other words, we could seewhere gene editing could accelerate gains. For seed companies, that SpinCo playing in a vastly expanded addressable market. means recurring revenue opportunities and longer product lifecycles.With more than 70 countries now active in gene-editing research, according to ISAAA, analysts say SpinCo is entering a global market with increasing regulatory openness to trait inno-vationconditions that could support above-market growth if the company leverages its existing germplasm platform.New Corteva, by comparison, will operate in the crop protec-tion market, where investor sentiment has been more tempered due to pricing pressures, generic competition and regulatory scrutiny. That divergence may become a central point of analysis as markets begin valuing the two entities independently. JANUARY 2026SEEDWORLD.COM/CANADA 5'