<div id="readability-page-1"><ul><li>Best Agriculture Stocks to Buy in 2020</li></ul><p>Bayer Aktiengesellschaft <span>ETR: BAYN<span></span></span> executives said the company’s Crop Science division remains on track with a five-year plan centered on cost savings, margin expansion and a slate of product launches in seeds, traits and crop protection.</p><p>Speaking at a BMO Capital Markets event, Rodrigo Santos, President of the Crop Science Division at Bayer Crop Science, said the company is one year into the strategy it presented to investors and is executing against its targets. The plan includes more than EUR 1 billion in savings across research and development, product supply, commercial operations and global functions, alongside innovation expected to add EUR 3.5 billion to the top line and EUR 1.5 billion in additional cash generation.  </p><p>“The good news is…we are on track,” Santos said. He said Bayer is continuing to execute the plan in 2025 and 2026, including savings initiatives in crop protection chemistry, site consolidations and portfolio pruning.  </p><h2>Bayer Reaffirms 2026 Targets</h2>  <p>Santos said Bayer’s first-quarter results supported its full-year 2026 outlook. The company is targeting core business sales growth of 1% to 4% and margin expansion to a range of 20% to 22%, up from 19.4%.  </p><p>He said the company has already announced several actions tied to its savings plan, including exiting Frankfurt and consolidating activity in Monheim and Dormagen, closing three sites globally, outsourcing some active ingredients and pruning 200 low-margin products. Santos also said Bayer exited regulatory applications in 10 Asian countries as part of a more focused crop protection strategy.  </p><p>Product supply represents EUR 600 million of the planned EUR 1 billion in savings, Santos said, adding that EUR 200 million has been completed and EUR 400 million is expected in coming years.  </p><h2>Seed Pipeline Remains Central to Growth Strategy</h2>  <p>Bayer executives highlighted a broad pipeline of seed and trait launches, including Preceon short-stature corn, Vyconic soybeans, Bollgard 4 and crop protection products such as Icafolin. Santos said the company expects to launch seven biotech traits in the U.S. and six in Brazil over the next five years.  </p><p>Santos said Bayer’s breeding engine is contributing to current sales momentum, noting that 75% of the corn hybrids sold in the U.S. this year came from launches over the past three years. In Brazil and Latin America, he said Bayer is also bringing new hybrids and expects low- to mid-single-digit price increases tied to innovation.  </p><p>On U.S. planting trends, a Bayer representative said the company’s order book and current planting data suggest roughly 95 million acres of corn and 85 million acres of soybeans, broadly in line with market expectations. The speaker said Bayer has not seen anything “fundamentally off” in the season so far.  </p><p>Executives also discussed uncertainty from geopolitical events, particularly the war in the Middle East and its potential effect on fertilizer and crop input costs. Santos said farmers may hold off on equipment purchases, make crop trade-offs and attempt to rationalize fertilizer use, with Latin America a key area to watch.  </p><h2>Vyconic, Preceon and Farmer Adoption</h2>  <p>Bayer described Vyconic as a major soybean platform, though Santos cautioned that 2027 would be the beginning of the launch and would not involve large acreage. When asked whether the initial launch could be around 1 million acres, Santos said it should be less.  </p><p>A Bayer representative said the North American soybean market has moved from single herbicide tolerance to three-way herbicide tolerance, while Vyconic is expected to bring five-way herbicide tolerance. The same speaker said farmer interest is strong and that Bayer has been building a broad germplasm base across maturity groups.  </p><p>Regulatory approvals remain a key step. The speaker said the single event has been approved in Europe, the stack is underway and seed is in China for studies.  </p><p>Bayer also discussed Preceon short-stature corn, which Santos described as a system rather than simply a seed product. He said Groundbreaker farmers testing the technology saw an average advantage of 8 bushels per acre versus traditional systems, tied to factors such as plant density, fertilizer and fungicide management.  </p><p>A Bayer representative said more than 1,100 farmers are planting Preceon this season. The product was described as two-thirds the height above ground with a root system one-third larger. The speaker said Bayer sees a strong fit for Preceon where yield environments exceed 140 bushels per acre, while very dry acres may be less suitable.  </p><h2>Crop Protection Faces Cost Pressures</h2>  <p>On crop protection, Santos said Bayer is seeing uncertainty around Chinese producer costs, oil prices and raw materials. He said the issue is more about cost than supply, as capacity remains available.  </p><p>Guru Ramamurthy, CFO of Bayer Crop Science, said higher petrochemical supply chain costs are affecting some materials tied to energy prices. If oil remains at $90 a barrel or above, he said Bayer would expect implications, though the company currently expects to manage or mitigate any earnings pressure this year. Ramamurthy said costs could flow through inventory and pressure the back half of the year.  </p><p>Santos said higher generic producer costs could create a short-term opportunity in crop protection, but he emphasized that higher fertilizer costs could hurt farmer economics and said Bayer hopes the war ends as soon as possible.  </p><h2>Glyphosate Litigation and Future Technologies</h2>  <p>Santos said 2026 remains an important year for Bayer’s effort to substantially contain glyphosate litigation. He said the next 60 days are important, citing a potential U.S. Supreme Court decision and a class settlement process, including opt-outs by June 4.  </p><p>“We feel that we have a good plan, a solid plan to contain litigation in 2026,” Santos said.  </p><p>Bayer also pointed to future technologies, including gene editing, artificial intelligence and biofuels. Santos said gene editing is “part of the future,” particularly when combined with breeding and biotech traits. On biofuels, he said Bayer sees opportunities in corn ethanol, camelina, cover crops and winter canola.  </p><p>A Bayer representative said the company has announced partnerships with BP and Chevron and is working toward a definitive agreement with a third party. The speaker said more than 80 million acres globally are currently used for biomass-based diesel feedstocks and that the market size could double by 2040.  </p><p>Santos invited investors to a Sept. 2 event in Iowa, where Bayer plans to provide more detail on its pipeline and innovation strategy.</p><h2>About Bayer Aktiengesellschaft <span>ETR: BAYN<span></span></span></h2><p>Bayer Aktiengesellschaft, together its subsidiaries, operates as a life science company worldwide. It operates through Pharmaceuticals, Consumer Health, and Crop Science segments. The Pharmaceuticals segment offers prescription products primarily for cardiology and women's health care; specialty therapeutics in the areas of oncology, hematology, and ophthalmology; and diagnostic imaging equipment and digital solutions, and contrast agents, as well as cell and gene therapy. The Consumer Health segment markets nonprescription over-the-counter medicines for self-medication and self-care; and solutions for nutritional supplements, allergy, cough and cold, dermatology, pain and cardiovascular risk prevention, and digestive health.</p><p><em>This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.</em></p><h2>Should You Invest $1,000 in Bayer Aktiengesellschaft Right Now?</h2><p>Before you consider Bayer Aktiengesellschaft, you'll want to hear this.</p><p>MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. 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<p>Bayer Aktiengesellschaft's Crop Science division is on track with its five-year plan focused on cost savings and product launches. Executives announced over EUR 1 billion in savings and projected EUR 3.5 billion in revenue growth. The company aims for core sales growth of 1% to 4% and margin expansion by 2026. Bayer plans to launch several biotech traits and has seen strong sales momentum from recent corn hybrids. However, uncertainties from geopolitical events may impact fertilizer costs and farmer purchasing decisions.</p>

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Bayer Aktiengesellschaft Backs Crop Science Targets as Seed Pipeline Gains Momentum