Q2 2024 The Andersons Inc Earnings Call

Operator: Can we do a test now? Testing, one, two, three. Yes, sir, I can.

Operator: Can we do a test now, testing one, two, three?

Can we do a test now testing 123, yes, Sir I can hear you. Please proceed.

Operator: Yes, sir, I can hear you. Please proceed.

Michael Hoelter: I'll go back where I left off. This is Pat Hoelter, the Institute of Recovery Commons. Results and trade were up with improvements on weak space income in our research aspects and within our growing trade and food and technology regions. As expected, merchandising opportunities were lower year-over-year in these well-supplied markets.

Patrick Bowe: Okay, I'm going to go back to where I left off. This is Pat Bowe giving some introductory comments. Results in trade were up with improvements in wheat space income in our Eastern African region and within our growing premium food and custom ingredients. However, as expected, merchandising opportunities were lowered year over year in these well-supplied markets. Farmers have been slow to sell grain at prices well below what they experienced in recent years, and a high percentage of last year's crop remains in on-farm storage. We expect much of this rain to move off-farm prior to harvest.

Okay, go back to where I left off. This is Pat Bowe giving introductory comments.

Speaker Change: Results in trade were up with improvements on wheat space income in our eastern assets and within our growing premium food and petroleum ingredients business.

Speaker Change: As expected, merchandising opportunities were lowered year over year in these well-supplied markets.

Michael Hoelter: Farmers even slow to celebrate at crisis well below with the experience in recent years, and a high percentage of last year's crop remains an unparalleled storage. We expect much of this space to move off on prior to harvest. Not 30 before it's in the removal service was very good. We've continued very strong performance at our overall plants. We have referred to second-color production in our current operations, benefiting from higher up-all yields and well-managed costs. Upper margins were fired in last year on lower core measures at our plants. The teams of our facilities executed very well, but overall results continued to be impacted by lower values of feed rates, which followed closely in the price of corn.

Speaker Change: Farmers have been slow to sell grain at prices well below what they experienced in recent years, and a high percentage of last year's crop remains in on-farm storage. We expect much of this grain to move off-farm prior to harvest.

Patrick Bowe: Operating performance in the removal business was very good, with continued very strong performance at our installation plant. We have record second quarter production in our current operations, benefiting from higher ethanol yields and well-managed costs. Buffalo Martins were higher than last year on lower corn basis at our plant. The teams at our facilities executed very well, but overall results continue to be impacted by lower values of feed ingredients, which fall closely to the price of corn.

Speaker Change: Operating performance in the removal business was very good, with continued very strong performance at our install plant.

Speaker Change: We have record second quarter production in our current operations benefiting from higher ethanol yields and well-managed costs.

Speaker Change: Buffalo margins were higher than last year on lower corn bases at our plant.

Speaker Change: The teams at our facilities executed very well, but overall results continue to be impacted by lower values of feed ingredients, which fall closely to the price of corn.

Michael Hoelter: A little of these will feed back merchandise in business, continues to grow with volumes, but it's seen margin compression from the industry funding up.

Patrick Bowe: Our renewable diesel feedstock merchandising business continues to grow and thrive, but it is seeing margin compression on industry fundamentals. Our third important nutrient in industrial business was solid, but negatively impacted by lower fertilizer price volatility and delayed application season that resulted in a decline in both volume and margin. When we look at the first half of 2024 compared to 2023, our volumes are comparable but have reduced margins in a lower fertilizer price environment this year. Brian will cover some key financial data, and after that, I'll be back to discuss our outlook for the remainder of 2024. Thanks, Pat, and good morning, everyone.

Speaker Change: Our renewable diesel feedstock merchandising business continues to grow and thrives, but is seeing margin compression on industry fundamentals.

Michael Hoelter: Our seven-quarter nutrient industrial business was followed, but negatively impacted by lower fertilizer price volatility and delay application season that resulted in a decline in both volume and margin. When we look at the first half of 2024, compared to 23, our volumes are comparable, but it reduced margins in a lower fertilizer price in buying this year. Volume L covers the P financial data.

Speaker Change: Our second quarter nutrient and industrial business was solid, but negatively impacted by lower fertilizer price volatility and delayed application season that resulted in a decline in both volume and margin.

Speaker Change: When we look at the first half of 2024 compared to 2023, our volumes are comparable, but it reduced margins in a lower fertilizer price environment this year.

Michael Hoelter: After that, I'll be back in staff for an hour for the remainder of 2024.

Speaker Change: Brian will cover some key financial data and after that I'll be back to discuss our outlook for the remainder of 2024. Thanks. Thanks, Pat, and good morning, everyone. We're now turning to our second quarter results on slide number five.

Michael Hoelter: Good morning, everyone. We're now through to you to our second quarter results on flight number five. In the second quarter of 2024, the company reported that income attributable to the Anderson's of $36 million, or $1.5 per diluted share, and adjusted in that income of $39 million, or $1.15 per diluted share. This compares to that income of $55 million, or $1.61 per diluted share, and adjusted in that income of $52 million, or $1.52 per diluted share, in the second quarter of 2023. Adjusted three-tack earnings were $45 million for the quarter, compared to $72 million in 2023.

Brian Valentine: We're now turning to our second quarter results on slide number five. In the second quarter of 2024, the company reported net income attributable to the Andersons of $36 million, or $1.05 per diluted share, and adjusted net income of $39 million, or $1.15 per diluted share. This compares to net income of $55 million, or $1.61 per diluted share, and adjusted net income of $52 million, or $1.52 per diluted share, in the second quarter of 2023.

Brian: In the second quarter of 2024, the company reported net income attributable to the Andersons of $36 million, or $1.05 per diluted share, and adjusted net income of $39 million, or $1.15 per diluted share.

Brian: This compares to net income of $55 million, or $1.61 per diluted share, and adjusted net income of $52 million, or $1.52 per diluted share, in the second quarter of 2023.

Brian Valentine: Adjusted pre-tax earnings were $45 million for the quarter compared to $72 million in 2023, with trade showing improvement and the other businesses generating solid results but were unable to match an outsized prior year. Adjusted EBITDA for the second quarter of 2024 was $98 million, compared to adjusted EBITDA of $144 million in 2023. Trailing 12 months adjusted EBITDA totaled $355 million. Our effective tax rate varies each quarter, based primarily on the amount of income or loss attributable to non-controlling income.

Brian: Adjusted pre-tax earnings were $45 million for the quarter, compared to $72 million in 2023, with trade showing improvement and the other businesses generating solid results but were unable to match an outsized prior year.

Michael Hoelter: With trade showing improvement and the other businesses generating solid results, but we're unable to match an outsized revenue. Adjusted EBITDA for the second quarter of 2024 was $98 million, compared to adjusted EBITDA of $144 million in 2023. Brailling 12 months, adjusted EBITDA total $355 million. Our effective tax rate varies each quarter based primarily on the amount of income or loss attributable to non-consolidating interests. This quarter also was impacted by the reversal of uncertain tax conditions relating to research and development and other tax credits. We recorded taxes for the quarter at a 90% effective tax rate.

Brian: Adjusted EBITDA for the second quarter of 2024 was $98 million, compared to adjusted EBITDA of $144 million in 2023.

Brian: Trailing 12 months adjusted EBITDA totaled $355 million dollars.

Brian: Our effective tax rate varies each quarter, based primarily on the amount of income or loss attributable to non-controlled interests.

Brian Valentine: This quarter also was impacted by the reversal of uncertain tax provisions relating to research and development and other tax credits. We recorded taxes for the quarter at a 90% effective tax rate. We now expect a full year adjusted effective tax rate between 14 and 18 percent. Next, we'll move to slide six to discuss cash, liquidity, and debt. We generated cash flows from operations before changes in working capital of $89 million in the second quarter of 2024, demonstrating our ability to generate consistent operating cash flows in a less volatile market.

Brian: This quarter also was impacted by the reversal of uncertain tax provisions relating to research and development and other tax credits. We recorded taxes for the quarter at a 90% effective tax rate.

Michael Hoelter: We now expect a full year adjusted effective tax rate between 14 and 18%.

Brian: We now expect a full year adjusted effective tax rate between 14 and 18 percent.

Michael Hoelter: Next, we'll move to slide six to discuss cash, liquidity, and debt. We generated cash flows from operations before changes in working capital of $89 million in the second quarter of 2024, demonstrating our ability to generate consistent operating cash flows in a less volatile market. This strong cash flow generation combined with slower commodity prices and delayed farmer engagement resulted in a cash position of more than $500 million and negligible short-term loans at the end of the quarter.

Brian: Next, we'll move to slide 6 to discuss cash, liquidity, and debt.

Brian: We generated cash flows from operations before changes in working capital of $89 million in the second quarter of 2024, demonstrating our ability to generate consistent operating cash flows in a less volatile market.

Brian: This strong cash flow generation combined with lower commodity prices and delayed farmer engagement resulted in a cash position of more than $500 million and negligible short-term borrowings at the end of the quarter.

Brian Valentine: This strong cash flow generation, combined with lower commodity prices and delayed farmer engagement, resulted in a cash position of more than $500 million and negligible short-term borrowings at the end of the quarter. Next, we'll take a look at capital spending and long-term debt on slide 7. We continue to take a disciplined, responsible approach to capital spending and investments, which we expect to be in the range of $150 to $175 million for the year, roughly half of which is typically related to maintenance capital. Our long-term debt to Enidot is approximately 1.6 times, which is well below our stated target of less than two and a half times.

Michael Hoelter: Next, we'll take a look at capital spending and long-term debt on slide seven. We continue to take a disciplined, responsible approach to capital spending and investments, which we expect to be in the range of $150 to $175 million for the year, roughly half of which is typically related to maintenance capital. Our long-term debt income is approximately 1.6 times, which is well below our state and target of less than 2.5 times. We have a strong balance sheet of significant capacity to support growth investments that meet our strategic and financial criteria. We continue to evaluate growth projects in our pipeline, including several M&A opportunities at the various stages of completion.

Brian: Next, we'll take a look at capital spending and long-term debt on slide 7.

Brian: We continue to take a disciplined, responsible approach to capital spending and investments, which we expect to be in the range of $150 to $175 million for the year, roughly half of which is typically related to maintenance capital.

Brian: Our long-term debt to EBITDA is approximately 1.6 times, which is well below our stated target of less than 2.5 times.

Brian Valentine: We have a strong balance sheet with significant capacity to support growth investments that meet our strategic and financial criteria. We continue to evaluate growth projects in our pipeline, including several M&A opportunities at various stages of completion. This includes the recently announced intent to acquire a ownership interest in Skyline Grain, LLC, pending completion of due diligence and negotiations. Our project pipeline remains very active, and we are excited about additional capital investment and M&A opportunities that align with our growth strategy.

Brian: We have a strong balance sheet with significant capacity to support growth investments that meet our strategic and financial criteria.

Michael Hoelter: This includes the recently announced intent to acquire an ownership interest in Skyline Grain LLC, ending completion of diligence and negotiations. Our project pipeline remains very active, and we are excited about additional capital investment and M&A opportunities that align with our growth strategies.

Brian: This includes the recently announced intent to acquire an ownership interest in Skyline Grain, LLC, pending completion of diligence and negotiations.

Brian: Our project pipeline remains very active, and we are excited about additional capital investment and M&A opportunities that align with our growth strategies.

Patrick Bowe: Now, we'll move on to the review of each of our businesses, beginning with trade on slide eight. Create and report a pretext income of $5 million and adjusted pretext income of $9 million compared to adjusted pretext income of $7 million in the second quarter of 2023. We have a slight improvement in our operating results in our trade business portfolio when compared to last June. The financial results for our great assets were up, driven by weak income opportunities, but domestic producers are still hesitant to forward sell due to lower commodity prices combined with limited basis appreciation to start the new.

Brian Valentine: Now, we'll move on to a review of each of our businesses, beginning with trade on slide 8. Achieve and report a pre-tax income of $5 million and adjusted pre-tax income of $9 million compared to adjusted pre-tax income of $7 million in the second quarter of 2023.

Brian: Now we'll move on to a review of each of our businesses, beginning with trade on slide 8.

Brian: Create and report a pre-taxed income of $5 million and adjusted pre-taxed income of $9 million compared to adjusted pre-taxed income of $7 million in the second quarter of 2023.

Brian Valentine: We had a slight improvement in our operating results in our trade business portfolio when compared to last year. However, the financial results for our grain assets were higher, driven by weak income opportunities. But domestic producers are still hesitant to forward sell due to lower commodity prices, combined with limited basis appreciation for start consumers. Our assets are well positioned to support the needs of our customers when the grains are brought to market. With the reduction in commodity prices and limited forward selling by producers, financing costs supporting inventory and forward contracts have also declined.

Brian: We had a slight improvement in our operating results in our trade business portfolio when compared to last June .

Brian: The financial results for our grain assets were up, driven by weakened income opportunities. But domestic producers are still hesitant to forward sell due to lower commodity prices combined with limited basis appreciation to start a new.

Patrick Bowe: Our assets are well positioned to support the needs of our customers when the grains are brought to market. With the reduction in commodity prices and limited forward selling by producers, financing costs supporting inventory and forward contracts have also declined. Our premium food and pet food ingredients business has shown growth year over year, with recent acquisitions and internal growth projects providing positive impacts to these products.

Brian: Our assets are well positioned to support the needs of our customers when the grains are brought to market.

Brian: With the reduction in commodity prices and limited forward selling by producers, financing costs supporting inventory and forward contracts have also declined.

Brian Valentine: Our premium food and pet food ingredients business has shown growth year-over-year, with recent acquisitions and internal growth projects providing positive impacts on these products. As Pat mentioned earlier, merchandising businesses are being impacted by an oversupplied grain market with lower commodity prices and less volatility. As expected, we saw a decline in the results of these businesses in the current quarter as compared to 2023. Trades adjusted EBITDA for the quarter was $24 million compared to $27 million for the second quarter of 2023.

Brian: Our premium food and pet food ingredients business has shown growth year-over-year with recent acquisitions and internal growth projects providing positive effects to these product lines.

Patrick Bowe: and Patrick Bowe. As I mentioned earlier, merchandising businesses are being impacted by an oversupply trade market with lower commodity prices and less volatility. As expected, we saw the client and result of these businesses in the current order has compared to 2023. Trade adjusted even though for the quarter was $24 million compared to $27 million from the second quarter of 2023. Moving to supply nine, renewables had another solid quarter generating pre-tax income attributable to the company of $23 million compared to $39 million and $32 million on an adjusted basis in the second quarter of 2023. That's in all, prices remained favorable in the quarter, and our operating performance resulted in record production in our four plants.

Brian: As Pat mentioned earlier, merchandising businesses are being impacted by an oversupplied grain market with lower commodity prices and less volatility.

Pat Bowe: As expected, we saw a decline in results of these businesses in the current quarter as compared to 2023.

Pat Bowe: Trades adjusted EBITDA for the quarter was $24 million compared to $27 million for the second quarter of 2023.

Brian Valentine: Moving to slide 9, Renewables had another solid quarter generating pre-tax income attributable to the company of $23 million compared to $39 million and $32 million on an adjusted basis in the second quarter of 2023. Ethanol prices remained favorable in the quarter, and our operating performance resulted in record production in our four plants. But overall, profitability was negatively affected by the values of co-products, including feed and corner.

Pat Bowe: Moving to slide 9.

Speaker Change: Renewables had another solid quarter, generating pre-tax income attributable to the company of $23 million, compared to $39 million and $32 million on an adjusted basis in the second quarter of 2023.

Speaker Change: Ethanol prices remained favorable in the quarter and our operating performance resulted in record production in our four plants. But overall profitability was negatively impacted by the values of co-products including feed and corn.

Patrick Bowe: But overall profitability was negatively affected by the values of co-products, including feed and cornering. Renewable people feed stock volumes continue to grow, but margins are down year over year due to overall industry fundamentals. Feed ingredients demand remained strong, that at lower values as prices are tied to the value of corn. Renewables had a beta of $52 million from the second quarter compared to $81 million and $74 million on an adjusted basis in the second quarter of last year.

Brian Valentine: Renewable diesel feedstock volumes continue to grow, but margins are down year over year due to overall industry fundamentals. Feed ingredient demand remains strong, but at lower values as prices are tied to the value of corn. Renewables had EBITDA of $52 million in the second quarter compared to $81 million and $74 million on an adjusted basis in the second quarter of last year. Turning to slide 10, the nutrient and industrial business reported pre-tax income of $23 million compared to an outsized $43 million in 2023.

Patrick Bowe: Turning to supply 10, the nutrient and industrial business reported pre-tax income of $23 million compared to an outsized $43 million in 2023. Overall, fertilizer prices declined in the quarter after several years of share prices and market volatility. In addition, a late and wet spring planting season in much of the core geography that we serve negatively impacted sales bond. This was offset in part by improvements in our manufactured products as we continued to streamline our operating. Nutrient and industrial had even thought of $32 million from the quarter compared to $52 million in 2023.

Brian Valentine: Overall, fertilizer prices declined in the quarter after several years of higher prices and market volatility. In addition, a late and wet spring planting season in much of the core geography that we served negatively impacted sales volume.

Brian Valentine: This was offset in part by improvements in our manufactured products as we continue to streamline our outreach. Nutrient and Industrial even topped $32 million in the quarter compared to $52 million in 2020. And with that, I'll turn things back over to Pat for some comments about our outlook for the remainder of 2020. Thanks, Brian.

Patrick Bowe: And with that, I'll turn things back over to Pat for some comments about our outlook for the remainder of 2024. Thanks, Brian. Overall, we remain optimistic about our $20.24 outlook. Our thing is that our outlook remains solid. With the expectation of size will grow by the handle of the upcoming harvest. We can believe it's smaller than we call it a regardless of July in the eastern assets. And it's time to continue our space income on the rain in the future.

Patrick Bowe: Overall, we remain optimistic about our 2024 outcome. Our state does this although it remains sovereign, with the expectation of sizable grain volume to handle in the upcoming harvest. We completed a smaller but good quality wheat harvest in July in the eastern absence.

Speaker Change: We completed a smaller but good-quality wheat harvest in July in the eastern absence.

Patrick Bowe: And we expect to continue to earn the state's income on the grain and accumulator. We're also very pleased with the growth in our premium food and feed ingredient products and anticipate continued growth, both organically and through acquisition. Merchandise and opportunities remain, but we expect that they will continue to be needed compared to results in times of higher commodity prices and market volatility. Our renewable segment continues to expect strong ethanol prices on peak demand from the growing export market. We expect values of our feed-breeding coproducts to remain soft as they follow lower corn prices.

Patrick Bowe: We're also very pleased with the growth in our premium season and feeding breeding products and anticipate continued growth both organically and for acquisitions.

Patrick Bowe: Merchandise and opportunity is remaining and we expect that they will continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to continue to We accept values of our feeding-ready co-products to remain soft as they follow lower cornice.

Speaker Change: A Renewables segment continues to expect strong ethanol prices on peak demand from the growing export market.

Patrick Bowe: Our production minds have remained very strong, and we believe this should continue. We remain focused on improving and maintaining our core production facilities for optimal efficiencies. Third-carbon merchandising of ethanol, feed ingredients, and renewable diesel feedstock will also continue to be an important component of the business and expect continued volume growth in renewable diesel feedstocks. The renewable business is an important part of our longer-term growth strategy. We continue to make progress on plans to lower the carbon techniques that are relevant. This includes advance and our production facilities as well developing supportive farm programs that should position us to acquire lower C.I.

Patrick Bowe: Our production minds have remained very strong, and we believe this should continue. We remain focused on improving and maintaining our core production facilities for optimal efficiency. Their carbon merchandising of ethanol, feed ingredients, and renewable diesel feedstock will also continue to be an important component of the business, and we expect continued volume growth in renewable diesel feedstock. The renewables business is an important part of our longer-term growth strategy, and we continue to make progress on plans to lower the carbon intensity of our atmosphere.

Patrick Bowe: This includes enhancements at our production facilities, as well as developing supportive farm programs that should position us to acquire lower-CI corn as a feedstock in the future. The outlook for this business remains strong. And if you're an industrial business, you're going out and looking to mix with continued wealth and low-grade prices and reduced foreign income.

Speaker Change: This includes enhancements at our production facilities, as well as developing supportive farmer programs that should position us to acquire lower-CI corn as a feedstock in the future. The outlook for this business remains strong.

Patrick Bowe: corn as a feedstock and future. The outcome for this business remains strong.

Patrick Bowe: The museum industrial business, New York, ought to open to mix the continued welcome-the-vogue rail crisis and reduced farmer income. The target of harvest and market-point amount will influence most carbon fertilizer applications. We'll also focus on continued operational enhancements in our manufacturing products facilities. So there's a firm biology position and a desire for continued growth.

Speaker Change: The time of harvest and market fundamentals will influence post-harvest fertilizer applications.

Patrick Bowe: We're also focused on continued operational enhancements in our manufacturing products facilities. With our strong balance sheet position and a desire for continued growth, we're excited about the significant opportunities for each of our three segments. I'll be mentioning renewables opportunities for the longer term and their implementation. We continue to work on the Skyland Grain LLC opportunity, which should significantly expand the geographic reach of our grain business and increase the size of our farm center fertilizer business within nutrient and industrial.

Speaker Change: We're also focused on continued operational enhancements in our manufacturing products facilities.

Patrick Bowe: We're excited about the significant opportunities to each of our three segments. I'll be mentioning renewable opportunities that are longer-term implementation. We continue to work on the skyline-brain LLC opportunity, which we significantly expand the geographic reach of our grievances and increase the size of our farm center fertilizer business within the treatment industry. We'll also evaluate the number of organic bulk initiatives, and our pipeline remains robust. We're focusing on organic and acquisition opportunities that can support business trends of commodities, premium radiance, ethanol, renewable diesel feedstocks, and needs. We'll continue to make responsible decisions that benefit our customers and maximize shareholder value as we execute on growth opportunities within our stated strategy.

Speaker Change: I'll be mentioning renewables opportunities for the longer term and implementation.

Speaker Change: We continue to work on the Skyland Grain LLC opportunity, which can significantly expand the geographic reach of our grain business and increase the size of our farm center fertilizer business within nutrient and industrial.

Patrick Bowe: We're also implementing a number of organic growth initiatives, and the pipeline remains robust. We're focusing on organic and acquisition opportunities within small businesses of commodities, premium ingredients, ethanol, renewable diesel feedstocks, and industry will continue to make responsible decisions that benefit our customers and maximize shareholder value as we execute our growth opportunities within our stated strategy. With that, I'll turn it back over to our operator, who can take your questions.

Speaker Change: We're also evaluating a number of organic growth initiatives, and the pipeline remains robust.

Speaker Change: We're focusing on organic and acquisition opportunities within small businesses of commodities, premium ingredients, ethanol, renewable diesel feedstocks, and refutes.

Speaker Change: We'll continue to make responsible decisions that benefit our customers and maximize shareholder value as we execute our growth opportunities within our stated strategy.

Operator: With that, I'll turn it back over to our operator, or we can take the questions. We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw it, please press star, then two. We will pause momentarily to assemble our roster.

Operator: We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been answered and you would like to withdraw it, please press star then 2. We will pause momentarily to assemble our roster. Our first question comes from Ben Klieve of Lake Street Capital Markets. Please go ahead.

Ben Clevy: Our first question comes from Ben Clevy of Lake Street Capital Markets. Please go ahead. All right, thanks for taking my questions, and congratulations, nice quarter here in the face of sub-automal conditions in the market. So congratulations on a quarter here. A handful of questions. First on the dynamic you all discussed on the elevated level of inventory throughout the grain complex.

Speaker Change: Our first question comes from Ben Klieve of Lake Street Capital Markets.

Benjamin Klieve: All right, thanks for taking my questions, and congratulations. A nice quarter here in the face of some suboptimal conditions in the market. So, congratulations on the quarter here.

Speaker Change: Please go ahead.

Patrick Bowe: A handful of questions. First, on this dynamic you all discussed regarding the elevated level of inventories throughout the grain complex, I'm wondering if, first of all, you have an expectation that this is going to work its way through truly by harvest time, or if there's a risk of elevated inventory levels and old crops staying in bins even after the new harvest comes in. And then second, as that unwinds, do you guys expect to see some kind of an increase in volatility, or is this kind of stale state something that you're expecting for the foreseeable future? I'll get started, Ben, and turn it over to...

Patrick Bowe: I'm wondering if, first of all, if you have an expectation that this is going to work its way through truly by harvest time or if there's a risk of elevated inventory levels and old crops staying in Ben's even after the new harvest comes in. And then second, as that on the wines, do you guys expect to see some, you know, could have an increase in volatility, or is this kind of stale state something that you're expecting for the foreseeable future? I think the shift in the markets and it does some good things for us, and it may mean in the East, we are not as big a software department as we had in past years but a great equality one.

Ben Cleavey: I'm wondering if, first of all, if you have an expectation that this is going to work its way through truly by harvest time or if there's a risk of elevated inventory levels and old crops staying in bins even after the new harvest.

Patrick Bowe: I'll get started, Ben, and turn it over to Bill. I think the shift in the markets has done some good things for us, and mainly in the East. We have not had as big a soft-boiled meat harvest as we have in past years, but a very good quality one. So we're able to purchase a lot of soft meat at harvest and have that in storage for the work we're doing, surely now including one via sourdough. So that's a good thing.

Speaker Change: We have not as big a South Florida wheat harvest as we had in past years, but a very good quality one. So we were able to purchase...

Patrick Bowe: So we're able to purchase a lot of software environments and have that in store to the work range, share with me, I'll include one via software. So that's a good thing. And it's here to move into the corner market; that's a good thing for elder operators or herself. We think the farmer will need to come to market because you have very high on-farm storage right now. And as they see, their current crops, which by the end of the week, it's been less range of way they've been a really nice boost of the crop this year.

Patrick Bowe: And as parents have moved into the corn market, that's a good thing for older operators like ourselves. We think the farmer will need to come to market because we have very high on-farm storage right now. And as they see their current crops, which have, by the way, been really good, these Midwest grains have been a really nice boost to the crop this year. I think we're going to see a big harvest this year, and thus farmers will be needing to move great volumes in the market here before we get to full harvest. Morning, Ben.

Speaker Change: We think the farmer will need to come to market because we have very high on-farm storage right now. And as they see their current crops, which by the way, they've been really good. These Midwest rains have been a really nice boost to the crop this year. I think we're going to see it in Harvards this year.

Patrick Bowe: I think we're going to see a big harvest of here, a bunch of farmers will be leading the move, creating the market here before we get to full harvest. They built in the front of the lawns.

Speaker Change: Farmers will be leading the way, creating the market here before we get to full harvests. Maybe go for the front ones.

William Krueger: I would agree with Pat. We have near-record on-farm stocks for corn, and we're looking at potentially a record-breaking corn yield. So, I think it would be very hard to make the assumption that the producer is not going to move their corn that's on the farm before harvest.

Patrick Bowe: Yeah, I would agree with that. We have near record on-farm stocks for corn, and we're looking at potentially a record-breaking corn yield. So I think it would be very hard to make the assumption that the producers not going to move their corn that's on farm before harvest. Got it.

Speaker Change: Yeah, morning Ben. I would agree with Pat.

Speaker Change: We have near-record on-farm stocks for corn, and we're looking at potentially a record-breaking corn yield.

Ben Cleavey: So, I think it would be very hard to make the assumption that the producer's not going to move their corn that's on farm before harvest.

Brian Valentine: Got it. Okay, that's very helpful from you both. And then, I guess as a follow-up to this, you guys noted on the last quarter call that the trade group is going to see some seasonality shift to later in the year. I guess, has this shift been slower than you maybe anticipated a few weeks, excuse me, a few months ago? And then, you know, on a full year basis, can you kind of comment on your expectations for the trade group, especially on the merchandising side of the business, for 24 versus 23?

Patrick Bowe: Okay, that's very helpful for me, but I guess as a follow-up to this, in the last quarter call, you guys noted an expectation that the trade group is going to see some seasonality shift to later in the year. I guess has this shift been slower than you may be anticipated a few weeks, a few months ago. And then, you know, on a full year, what basis can you kind of comment on your expectation for the trade group, especially in the merchandising side of the business for 24 versus 23? Yeah, I'll take that one. No, but I think that our expectations at the end of Q1 are playing out like we thought they would.

Ben Cleavey: Got it. Okay, that's very helpful from you both. And then I guess as a follow-up to this, you know, in the last quarter call you guys noted an expectation that the trade group is going to see some seasonality shift to later in the year.

Speaker Change: I guess, has this shift been slower than you maybe anticipated a few weeks, excuse me, a few months ago? And then, you know, on a full year basis, can you kind of comment on your expectations for the trade group, especially in the merchandising side of the business for 24 versus 23?

Brian Valentine: Yeah, I'll take that one. No, but I think that our expectations at the end of Q1 are playing out like we thought they would. You know, at that time, we weren't nearly as confident in the upcoming corn crop. So I do think that we are going to remain in this lower price environment. But I do believe that we should have an opportunity to handle even more fall harvest crops as the crop does continue to look good in early August.

Speaker Change: Yeah, I'll take that one. No, but I think that our expectations at the end of Q1 are playing out like we thought they would. You know, at that time we weren't nearly as confident in the upcoming corn crop, so I do think that we are going to remain in these lower price...

Patrick Bowe: And you know, at that time, we weren't nearly as confident in the upcoming corn crop. So I do think that we are going to remain in this lower price environment, but I do believe that we should have an opportunity to handle even more fall harvest crops as the crop does continue to look good. And so in early hours, the other thing is we have to really pay attention to the value of the wheat of US wheat compared to our competitors around the globe. And I think that's going to provide some opportunity for us also. And to your last question, we do think that the last half of 2024 will be more challenging than the last half of 2023 was, just because we're in a lower price environment.

Speaker Change: environment.

Speaker Change: But I do believe that we should have an opportunity to handle even more

Brian Valentine: The other thing is we have to really pay attention to the value of wheat, of U.S. wheat, compared to competitors around the globe. And I think that's going to provide some opportunities for us also. And to your last question, we do think that the last half of 2024 will be more challenging than the last half of 2023 was, just because we're in a lower price environment and volatility is a little lower.

Speaker Change: fall harvest crops as the crop does continue to look good in early August . The other thing is, we have to really pay attention to the value of the wheat, of U.S. wheat, compared to competitors around the globe. And I think that's going to provide some opportunity for us also.

Speaker Change: And to your last question, we do think that the last half of 2024 will be more challenging than the last half of 2023 was, just because we're in a lower price environment and volatility is a little lower.

Ben Clevy: We're in a volatility is a little lower. Got it. Okay, that's very helpful. Thanks, Bill.

Benjamin Klieve: Got it. Okay, that's very helpful. Thanks, Bill.

Patrick Bowe: On the renewable side, question on the renewable diesel initiative, you noted that volumes were up, margins were down. Can you comment on overall earnings from that initiative to the volume growth more than offset that the margin declines or is the opposite true? I would say that the volume growth was not offset and did not offset the reduction in overall margins produced on the Renewable Diesel Feeds time. Okay, very good.

Speaker Change: Got them

Brian Valentine: On the renewable side question on the renewable diesel initiative, you noted that volumes were up, but margins were down. Can you comment on overall earnings from that initiative? Did the volume growth more than offset the margin declines, or was the opposite true?

Speaker Change: Okay, that's very helpful. Thanks, Bill. On the renewable side question on the Renewable Diesel Initiative, you noted that volumes were up, margins were down. Can you comment on overall earnings from that initiative? Did the volume growth more than offset the margin declines, or was the opposite true?

Brian Valentine: I would say that the volume growth did not offset the reduction in overall margins produced on the renewable diesel feedstock.

Speaker Change: I would say that the volume growth did not offset the reduction in overall margins produced on the renewable diesel feedstock.

Patrick Bowe: Okay, very good. And then last, oh, sorry, go ahead, Pat.

Patrick Bowe: And then last, well, sorry, go ahead, Pat. But I'm going to put it on that as you know, we already friends came online. We still continue seeing the blast for demand. I would like the virtual portfolio. And we see this as a business opportunity to continue to be important in the intentions, like all commodity markets, and some bounce and bounces will spot in the end. And that plays right into our merchandise and take it over and show it's a business work committed to continue to grow. Got it.

Patrick Bowe: And I'm just going to comment on that. As new R&D plans come online, we still continue to see robust demand. We like the diversity of our portfolio, and we see this as a business opportunity to continue to be important within the industries. Like all commodity markets, it's going to have its ups and downs and balances of supply and demand. And that plays right into our merchandising capabilities, so it's a business we're committed to continuing to grow.

Speaker Change: Okay, very good. And then last, oh sorry, go ahead, Pat.

Pat Bowe: But I'm just going to comment on that. As, you know, new RD plans came online, we still continue to see requests for demand. We like the diversity of our portfolio, and we see this as a business opportunity to continue to be important within the internships.

Speaker Change: Like all commodity markets, it's going to have its ups and downs and balances of supply and demand, and that plays right into our merchandise and capability. So it's a business we're committed to continue to grow in.

Brian Valentine: Got it. And last one for me, you guys talked about considering a few different M&A opportunities at kind of various stages of the diligence process. The Skyland Grain acquisition seems to be a sizable one, but I'm wondering if you can characterize these opportunities that you're in diligence for from the perspective of, you know, are these, do you have multiple acquisitions in your pipeline that are, you know, really advancing your, towards your 2025 EBITDA targets or are the other things you're considering beyond Skyland kind of more talking in nature?

Brian Wright: And last one for me, you guys talked about considering a few different M&A opportunities at kind of various stages of the diligence process. The Skyland grain acquisition seems to be a sizable one, but I'm wondering if you can characterize these opportunities that you're in diligence for from the perspective of, you know, are these multiple acquisitions in your pipeline that are, you know, really advancing you towards your 2025 even a target. Or are, are the other things you're considering beyond Skyland, kind of more talking in nature. I'll start maybe build some color. I would say our pipeline does remain pretty robust.

Speaker Change: Got it. And last one for me, you guys talked about considering a few different M&A opportunities at kind of various stages of the diligence process. The Skyland Grain acquisition seems to be a sizable one, but I'm wondering if you can characterize these opportunities that you're in diligence for from the perspective of, you know, are these, do you have multiple acquisitions in your pipeline that are, you know, really advancing towards your 2025 EBITDA targets, or are the other things you're considering beyond Skyland kind of more talking in nature?

Brian Valentine: Hi everyone, this is Brian. I'll start, and then maybe Bill can add some color. I would say our pipeline does remain pretty robust, and we've seen it be even more active this year. We're seeing more deal flow, probably in part due to the higher interest rate environment over the past year or two, and so I would say there are various stages of completion. And I would probably characterize more of them as, you know, we've talked about singles in the past.

Speaker Change: This is Brian . I'll start and then maybe Bill can add some color. I would say, yeah, our pipeline does remain pretty robust. We've seen it be even more active this year.

Brian Wright: We've seen it be even more active this year. We're seeing more deals, more deals; low probably in part to the higher interest rate environment over the past year or two. And so I would say there are various things of completion. I would probably characterize more of them as, you know, we talked about singles in the past. I would call more of these doubles triples as we think about some of the growth projects, both internal growth as well as some of the M&A growth. We're going to continue to be disciplined. And I know, you know, with regard to the $475 million run rate target that's out there, we've talked about these sort of changing and dynamic ag markets over the past several quarters.

Brian: More deal flow, probably a part due to the higher interest rate environment over the past year or two.

Bill: And so I would say there are various stages of completion.

Bill: And I would probably characterize more of them as, you know, we've talked about singles in the past. I would call more of these...

Brian Valentine: I would call more of these doubles and triples as we think about some of the growth projects, both internal growth as well as some of the M&A growth. We're going to continue to be disciplined. And I know, you know, with regard to the $475 million run rate target that's out there. We've talked about it in these sort of changing and dynamic ag markets over the past several quarters. It'll require, you know, more M&A to get there, but we're going to continue to be disciplined and responsible and make sure that we generate appropriate returns for our shareholders.

Bill: Doubles, triples, as we think about some of the growth projects.

Bill: both internal growth as well as some of the M&A growth.

Bill: We're going to continue to be disciplined and I know, you know, with regard to the $475 million run rate target that's out there, we've talked about in these sort of changing and dynamic ag markets over the past several quarters. It'll require, you know, it'll require more M&A to get there, but we're going to continue to be disciplined and responsible and make sure that we're going to generate

Brian Wright: It'll require, you know, it'll require more eminent to get there, but we're going to continue to be, continue to be disciplined and responsible and make sure that we're going to generate appropriate returns for our shareholders. And Bill, maybe you want to comment about some of the, some of the deal flows. Yeah, I would say Brian's comment there around. It will take maybe more M&A than we'd originally expected to achieve the $475, but we are seeing the opportunities that both tied directly into our core business. Skyland's a very good example that, where geographically and product myths, it fits right into the center of our core.

Brian Valentine: And Bill, maybe you want to comment about some of the deal flow as well? Yeah, I would say in Brian's comment there that it will take maybe more M&A than we'd originally expected to achieve the $475. But we are seeing opportunities that both tie directly into our core business. Skyrim's a very good example of that, where geographically and in product mix, it fits right at the center of our core business. We're also taking a look at where the industry is going to be in two to three years' time and trying to get in front of those opportunities, which would also be larger in size compared to what we've done in the last three years.

Bill: appropriate returns for our shareholders. And Bill, maybe you want to comment about some of the...

Bill: Some of the people at home.

Bill: Yeah, I looked at Brian's comment there around it will take maybe more M&A than we'd originally expected to achieve the 475, but we are seeing the opportunities that both tie directly into our core business. Skyrim is a very good example of that where geographically and product mix, it fits right at the center of our core. We're also taking a look at where the industry is going to be at in two to three years time and trying to get in front of those opportunities, which would also be larger in size compared to what we've done the last three years.

Brian Wright: We're also thinking and look at where the industry is going to be at in two to three years' time and trying to get in front of those opportunities, which would also be larger in size compared to what we've done the last three years. Got it. Very good.

Benjamin Klieve: Got it. Got it. Very good. All right. Well, I appreciate you guys taking my questions, and I'll get back in queue.

Ben Clevy: All right, well, I appreciate you guys taking my questions, and I'll get back and kill.

Speaker Change: Got it. Got it. Very good. All right. Well, I appreciate you guys taking my questions and I'll get back in queue.

Scott Fortune: Our next question comes from Scott Fortune of Roth Capital Partners. Please go ahead. Yeah, good morning, afternoon, and thanks for the questions. Just want to follow up a little bit on the scale and your focus that kind of ignore the importance of the U.S.

Scott Fortune: Our next question comes from Scott Fortune of Roth Capital Partners.

Speaker Change: Our next question comes from Scott Fortune of Roth Capital Partners.

Scott Fortune: Yeah, good morning, and afternoon. And thanks for the questions. Just want to follow up a little bit on the scale and your focus of kind of the northern portion of the US and just provide a little more color strategically on the footprint with the skyline kind of more in the Midwest, just kind of a little more color on the focus of those assets. And as they become integrated within your footprint, from expanding your footprint, just kind of take us through that a little bit more. That'd be great. Cheers.

Speaker Change: Please go ahead.

Scott Fortune: Yeah, good morning, afternoon, and thanks for the questions. I just want to follow up a little bit on the scale and your focus that kind of the northern portion of the U.S. and just provide a little more color strategically.

Scott Fortune: And just provide a little more color strategically on the footprint with the Skyland kind of born in the Midwest, she's kind of a little more color on the focus of those assets and as they become integrated within your footprint from expanding footprint just kind of take us through that little bit more. Let the great. I think as you know, that the annals of the original footprint was a Eastern rainbow footprint, you know, here in the intro to Mommy Lyle, we're getting a lot of Michigan Indian in all the ways, so Eastern rainbow, and with the acquisition of Lansing in 19, the youth part of the Times Week in the western corner, as far as I know, about something to move to the end.

Speaker Change: On the footprint with the Skyland, kind of more in the Midwest, just kind of a little more color on the focus of those assets and as they become integrated within your footprint from expanding footprint. Just kind of take us through that a little bit more. That'd be great.

Patrick Bowe: Sure, Scott. This is Pat.

Speaker Change: Sure Scott, this is Patrick. I think as you know that Andersons original footprint is an eastern radial footprint, you know.

Patrick Bowe: I think, as you know, that Andersons' original footprint is an eastern grain belt footprint. You know, here, at headquarters in Montgomery, Ohio, a very big Ohio, Michigan, Indiana, Indian, Illinois, so the eastern grain belt. And with the acquisition of Lansing in 19, we moved quite a bit tidesweep into the western corn belt, as far out as Idaho and down south into Louisiana. But we don't have a big physical presence with assets in Texas and southeast Kansas and most of the hard wheat state mild country and into the panhandle, where we have a big growing demand for dairy and feedlot demand for grain.

Speaker Change: Here are mentors in Maumee, Ohio, Michigan, Indiana, and in all the way, so Eastern Greenbelt, and with the acquisition of Lansing in 19, we moved quite a bit tides away into the Western Corn Belt.

Scott Fortune: So we don't have a big physical present with assets in the Texas and Southeast Kansas in most of the hard, weak state model countries that into the panerole will get a big growing demand for dairy and feedlocked demand for grain to generate active part of the country, and for us to expand the grassland to that region will be attracting this bill month and early, we could perfect fit with our overall portfolio.

Speaker Change: As far out as I know and down south into Louisiana, but we don't have a big physical presence with assets in Texas.

Speaker Change: Southeast Kansas and most of the hard weak state model countries and into the panhandle we'll get a big growing demand for dairy and feedlot demand for grain so it's a very active part of the country and for us to expand geographically to that region would be attractive

Patrick Bowe: So it's a very active part of the country. And for us to expand geographically to that region would be attractive. As Bill mentioned earlier, we think it's a perfect fit with our overall portfolio. We can't really comment more on it. We're in the middle of due diligence. But strategically, from our direction and company, and geographically, it's a really nice fit for the Andersons.

Scott Fortune: We can look kind of more in, we move to buildings, particularly from our direction and company, Angie Brockbury. That's a really nice step for the industry. Perfect, thanks.

Speaker Change: As Bill mentioned earlier, we think it's a perfect fit with our overall portfolio. We can't really comment more on it. We're a little too diligent. But strategically, from our direction, the company, and geographically, it's a really nice fit for the Andersons.

Patrick Bowe: And then just kind of switching to the opportunity kind of update on the ethanol business, kind of turn a little bit and crush margins there, but the outlook on ethanol as we head into fall and inventory levels there and production across the industry versus demand. And then just to follow up, just kind of an update on the ethanol jet fuel opportunity, your sense of farmers starting to kind of implement various initiatives toward the opportunity, just kind of a sense of that timing overall as we focus on the ethanol side.

Scott Fortune: And then just kind of switching to the opportunity kind of update on the ethanol business and kind of the turn a little bit and crush margins there, but outlook on ethanol as we head into fall and inventory levels there and production across the industry versus demand. And then just to follow up, just kind of an update on ethanol, jet fuel opportunity, your sense of the farmers starting to kind of implement various initiatives towards the opportunities, kind of sense of that timing overall as we focus on this, and all the time.

Speaker Change: Perfect, thanks.

Speaker Change: And then just kind of switching to the opportunity kind of update on the ethanol business, kind of turn a little bit and crush margins there, but outlook on ethanol as we head into the fall and inventory levels there and production across the industry.

Speaker Change: versus demand. And then just to follow up, just kind of an update on ethanol jet fuel opportunity, your sense of the farmers starting to kind of implement various initiatives towards the opportunity, just kind of sense of that timing overall as we focus on the ethanol side.

Patrick Bowe: Before I let Bill get started with an ethanol, before we go correctly, just said that this was a California team talking about itself, easy chances, and I shouldn't say it's self-a-western, do you have politics about that? The benefit of panerole and self-a-western is we're going to get my geography correct out of what I said a few minutes ago.

Patrick Bowe: Before I let Bill get started with something else and all, before Bill, I want to correct what I just said. This was a California kid talking about it. I said southeast Kansas, and I shouldn't have said southwest Kansas, and I apologize for that. It depends on the thing I know in southwest Kansas. I want to get my geography right on what I said a few minutes ago.

Speaker Change: Before I let Bill get started with something else at all, before I go, I want to correct what I just said. This was a California kid talking about it. I said southeast Kansas, and I shouldn't have said southwest Kansas. And I apologize about that. It depends if they are in southwest Kansas. I want to get my geography correct on what I said a few minutes ago.

Patrick Bowe: At a high level, I think I'm understanding your line of thought here, Seth. We mentioned in our script our commitment to the future of a foreign ethanol plant, and it's not just only about carbon intensity, which is a big part of it, and looking at two-prostation projects of the wife and work with growers on a renewable ag, but we have the work and work on efficiency, both highly one, or combined heat and power of our plants, how we get better yields and more productivity, and those investments that we've continued to make. It was plenty to put us in the top floor, the top deck out of the industry, and I think if you look at our continued productive performance, a new performance, and profitability, enough of a plan to continue, or it may be one of the leaders in the industry here. We want to continue to do that, so I'm going to continue to invest in those plans and make them as low CI as all of those modern, efficient, and large sales again, so that's a focus on both on capital projects and continue to do a lot of run from our plants.

Patrick Bowe: At a high level, and I think I'm understanding your line of thought here, Scott, is that we mentioned in our script our commitment to the future of a fluorescent oil plant. And it's not just about carbon intensity, which is a big part of it, and looking at superstition projects of the like, and working with growers on renewable ag. But we have been working on efficiency, both how we run our combined heat and power of our plants, and how we get better yields and more productivity.

Speaker Change: At a high level, I think I'm understanding your line of thought here, Scott.

Speaker Change: as we mentioned in our script.

Speaker Change: Our commitment to the future of our four ethanol plants...

Speaker Change: And it's not just only about carbon intensity, which is a big part of it, and looking at superstition projects of the like.

Speaker Change: and working with growers on renewable ag. But we have been really working on efficiency, both how we run our combined heat and power of our plants, how we get better yields and more productivity. And those investments that we've continued to make in those plants have put us...

Patrick Bowe: And those investments that we've continued to make in those plants have put us in the top quartile, the top decile of the industry. And I think if you look at our continued production performance, in yield performance, in profitability, in ethanol plants, you can see we're maybe one of the leaders in the industry here. We want to continue to do that.

Speaker Change: In the top quartile, the top decile of the industry, and I think if you look at our continued production performance, in yield performance, in profitability, in ethanol plants, you can see we're going to be one of the leaders in the industry here, we want to continue to do that, so we're going to continue to invest

Patrick Bowe: So we're going to continue to invest in those plants and make them as low CI as well as the most modern, efficient, and large scale as we can. So that's a focus of both on capital projects and continue to do at our ethanol plants. Bill, could you comment a little bit more about the other parts of ethanol you were bringing up? Thanks, Scott, for the question.

Speaker Change: in those plans to make them as low-CI as well as most modern, efficient, and large-scale as we can. So that's a focus of both on capital projects and we'll continue to do that around all plans.

Patrick Bowe: Bill, come in a little bit more about the other parts of what you're bringing up. Thanks, Scott, for the most question. First, I'd like to start with, we believe alcohol and jet is, you know, a few years down the road, and from the end of this perspective, I think we demonstrated both the last several quarters that we're able to operate in a renewable space specifically our ethanol plants very efficiently and profitably. We're not going to wait until we have more clarity around staff from ethanol. We really want to grow in this space now, and so we're looking at opportunities from growing our current footprint to acquisitions and other opportunities to take advantage of an area that we feel is really core to our company, and that comes from not just running the ethanol plants.

Speaker Change: You know what, Bill, tell me a little bit more about the other parts of the vaccine that you're bringing up. Thanks, Scott, for the question. First, I'd like to start with, we believe alcohol to jet is...

William Krueger: First, I'd like to start with us believing alcohol to jet fuel is... You know, a few years down the road. And from the Andersons perspective, I think we've demonstrated over the last several quarters that we're able to operate in the renewable space, specifically our ethanol plants, very efficiently and profitably. We're not going to wait until we have more clarity around SAF from ethanol. We really want to grow in this space now. And so we're looking at opportunities from growing our current footprint to acquisitions and other opportunities to take advantage of an area that we feel is really core to our company.

Speaker Change: You know, a few years down the road, and from the Andersons perspective, I think we've demonstrated over the last several quarters that we're able to operate in the renewable space, specifically our ethanol plants, very efficiently and profitably. We're not going to wait until we have more clarity around SAF from ethanol. We really want to grow in this space now.

Speaker Change: And so we're looking at opportunities from growing our current footprint to...

Speaker Change: acquisitions and other opportunities to take advantage of an area that we feel is really core to our company and that that comes from not just running the ethanol plants it's the understanding of

William Krueger: And that comes from not just running the ethanol plants. It's the understanding of originating corn, selling DCO, selling DDGs, and selling the ethanol. So we see opportunities there before we get to a SAF product from ethanol and really want to take advantage of it sooner than later. This is Dr. Pat again.

Patrick Bowe: It's the understanding of originating corn, selling DCO, selling DDGs, and selling the ethanol. So, we have opportunities there before we get to a staff product from ethanol, and we really want to take advantage of it sooner than that.

Speaker Change: originating corn, selling DCO, selling DDGs, and selling the ethanol. So we see opportunities there before we get to a SAF product from ethanol and really want to take advantage of it sooner than that.

Patrick Bowe: This is Dr. Pat again here. I wanted to talk to you. I think you were asking about outlooks to the ethanol margin, not look for the balance and cheer. And we're really good to shape as an industry this year. We have some very high margins last year. The reduction of corn has impacted public values. Overall, ethanol demand has really been strong, and that's mostly been boosted by exports. Year-to-date, where 963, year-to-date exports last year, we finished a year at 1.43. Raising estimates are 171.9. For the year, we think it can be all of 1.9. And with that kind of boost in exports, ethanol value and global market, it's very intensive for ESF law.

Patrick Bowe: I wanted to stop and comment. I think you were asking about our outlook for the ethanol margin outlook for the balance this year. And we're really good to shape as an industry this year. You know, we had some very high margins last year. The reduction in corn has impacted crop product values, but overall, ethanol demand has really been strong, and that's mostly been boosted by exports. Year-to-date, we're at 963 year-to-date exports. Last year, we finished the year at 1.43. Ratings and estimates are 1.719.

Dr. Pat: This is Dr. Pat again here. I wanted to ask a comment. I think you were asking about an outlook for the ethanol margin, outlook for the balance and share.

Speaker Change: And we're really good to shape as an industry this year. You know, we had some very high margins last year. The reduction of corn has impacted crop product values, but overall, ethanol demand has really been strong, and that's mostly been boosted by exports.

Speaker Change: Year-to-date, we're at 963 year-to-date exports. Last year we finished a year at 1.43. Ratings and estimates are 1.719.

Patrick Bowe: For the year, we think it can be all of one night, and with that kind of a boost in exports, ethanol volume in the global market is very inexpensive for U.S. ethanol. And so we see strong demand and thus bullish upside for ethanol margins going into the balance of the year. So it's been a solid year for ethanol results, and we think that will continue for the year ahead.

Speaker Change: For the year, we think it can be all of one night, and with that, kind of a boost in exports.

Patrick Bowe: And so we see strong demand and both your bullish upside ethanol margins going into the bounce of year. So instead of a solid year for ethanol results, and we think that will continue to be year-to-date. I appreciate that color.

Speaker Change: Thank you very much.

Brian Valentine: I appreciate that color. And then one last one, if possible, kind of an update on the trade business and the carry in the market, kind of with the largest crop shares, just a little more color on the trade contribution, as we see in the second half on pre-tax earnings, kind of into the second half, 24, just kind of more, a little bit of expectations there from your guys.

Patrick Bowe: And then one last one is possible. Just kind of along those lines, kind of update on the trade business and the carry in the market, kind of with the large US crop shares, just a little more color on the trade contribution as we've seen the second half on pre-tech earnings, kind of into the second half, 24, just kind of more little bit of expectations there from your guess sense. Sure, I'll take that one. As I mentioned earlier, we see a lot of opportunity coming out of our grain assets, capturing elevation margins and space income going forward.

Speaker Change: I appreciate that color and then one last one if possible just kind of along those lines kind of update on the trade business.

Speaker Change: and the carry in the market kind of with the largest crops here is just a little more color on the trade contribution as we've seen the second half on pre-tax earnings kind of into the second half 24 just kind of more a little bit expectations there from your guys' sense.

Brian Valentine: Sure, I'll take that one. As I mentioned earlier, we see a lot of opportunity coming out of our marine assets, capturing elevation margins and space income going forward. All expectations are that we're going to have a large crop, which will benefit us from our assets. And then, when you look at the opportunities in merchandising, you know, it's going to be a little slower than it has been historically, but, you know, the thing that we always consider is the fact that our end users want to buy grain from us, so we're going to have the opportunity.

Speaker Change: All right, sure, I'll take that one.

Speaker Change: As I mentioned earlier, we see a lot of opportunity coming out of our green assets, capturing elevation margins and space income going forward. All expectations are we're going to have a large crop, which will benefit us from our assets.

Patrick Bowe: All expectations are going to have a large crop, which will benefit us from our assets. And then when you look at the opportunities and the merchandising, it's going to be a little slower than it has been historically. But the thing that we always consider is the fact that our end users want to buy grain from us. So we're going to have the opportunity. It's just how much opportunity we create from the volatility. It will be the question in the last half, but I think the elevation margins are going to be higher than we assumed and likely offset by some lower opportunities with our opportunities.

Speaker Change: And then, when you look at the opportunities in the merchandising, you know, it's going to be a little slower than it has been historically, but, you know, the thing that we always consider is the fact that our end users wanted

Brian Valentine: It's just how much opportunity we create from the volatility; it will be the question in the last half, but I think elevation bargains are going to be higher than we assumed and likely offset by some lower opportunities with our merchandising.

Speaker Change: from us, so we're going to have the opportunity.

Speaker Change: The opportunity we create from the volatility, it will be the question in the last half, but I think elevation margins are going to be higher than we assumed and likely offset by some lower opportunities with our merchandise.

Scott Fortune: Thanks. I'll jump back in the queue. Appreciate the color.

Scott Fortune: Thanks. I'll jump back in the queue. I appreciate the color.

Speaker Change: Thanks. I'll jump back in the queue. Appreciate the color.

Ben Mayhew: Our next question comes from Ben Mayhew of BMO Capital Markets. Please go ahead. Hey, good morning, guys. Thanks for taking the question. I was wondering if you could talk about the demand you are seeing from the animal feed side. And can you also talk about the shift between premium and value pet food channels. Just trying to get a sense of what you're seeing in terms of demand. Thanks.

Benjamin Bienvenu: Our next question comes from Ben Mayhew of BMO Capital Markets. Please go ahead.

Speaker Change: Our next question comes from Ben Mayhew of BMO Capital Markets.

Benjamin Bienvenu: Hey, good morning, guys. Thanks for taking the question. Um, I was wondering if you could talk about the demand you're seeing on the animal feed side? And can you also talk about the shift between premium and value pet food channels? Just trying to get a sense of what you're seeing in terms of demand. Thanks.

Speaker Change: Please go ahead.

Ben Mayhew: Hey, good morning guys. Thanks for taking the question. I was wondering if you could talk about the demand you are seeing from the animal feed side.

Speaker Change: Can you also talk about the shift between premium and value pet food channels? Just trying to get a sense of what you're seeing in terms of demand. Thanks.

Patrick Bowe: Thank you, Ben. I know I will start with the animal Animals numbers. Obviously, fork industry has had a little bit of struggles. The industry is doing very well. And in our specific areas, let's talk about the Western Cornville. What we're seeing is a definite pickup in demand from the big cattle dairy markets. And I expect to see probably in the first half of 25 on on four. And so I think we have a real good opportunity there. And what was the second part of your question? Sorry, Ben. Yeah, so also just trying to get a sense of the demand between the premium and value pet food channels.

William Krueger: Thank you, Ben. I will start with the animal numbers.

Speaker Change: Thank you, Ben. I will start with the animal numbers.

William Krueger: Obviously, the pork industry has had a little bit of struggles. The beef industry, however, is doing very well. And in our specific areas, let's talk about the western Corn Belt, we're seeing a definite pickup in demand from the beef cattle and dairy markets, and I expect to see it probably in the first half of 2025 for pork. And so I think we have a really good opportunity there. And what was the second part of your question? Sorry, Ben.

Speaker Change: Fork industry has had a little bit of struggles, beef industry is doing very well, and in our specific areas, let's talk about the Western Corn Belt, we're seeing a definite pickup in demand from the beef cattle, dairy markets.

Speaker Change: and I expect to see probably in the first half of 25 on quarter, and so I think we have a real good opportunity there. And what was the second part of your question? Sorry, Ben.

Benjamin Bienvenu: Yeah, so also just trying to get a sense of the demand between the premium and value pet food channels. Like, do we see a shift to premium? Or do we see a shift to value? And how does that translate to your business model? Yeah, I probably just...

Ben: Yeah, so also just trying to get a sense of the demand between the premium and value pet food channels. Like do we see a shift to premium or are we seeing a shift to value and how does that translate to your business model?

Patrick Bowe: Like, do we see a shift to premium, or are we seeing a shift to value, and how does that translate to your business model? Yeah, I apologize for that. Yeah, we are definitely seeing a shift from the premium, a continued shift, from the value products, and that actually fits the Anderson's special ingredients model better than the premium where we're able to hit some of our beat customers with the products that they need for those value products versus the premium ones. I think that this is bad again. It's kind of essentially what we do is a company.

William Krueger: Yes, I apologize for that. We are definitely seeing a shift from the premium, a continued shift from the premium to the value products, and that actually fits the Andersons special ingredients model better than the premium. We're able to hit some of our key customers with the products that they need for those value products versus the premium ones. Ben, this is Pat again.

Patrick Bowe: It kind of accentuates what we do as a company. We're, you know, merchandisers of the domestic range, and we've worked for, you know, decades with these customers in the swine, beef, cattle, poultry, as well as ethanol, flour milling, or pet food ingredient customers. And whether the prices are high or low on a board margin level, we really focus on domestic supply for those individual customers. And that kind of demand is very robust, and those relationships are very strong. So it's critical for us to continue to supply those customers with what they need.

Patrick Bowe: We're in merchandisers of domestic brains, and we work for decades with these customers in the swine, decal, poultry, as well as, that's at all, flower milling or equity greedy customers. And one of the questions is, I don't know, on the board's market level, but we really focus on the domestic supply for those individual customers. And that kind of demand is very robust, and those relationships are very strong. So that's kind of the right to continue to supply those customers what they need.

Patrick Bowe: Great. And if I could just ask one more. And I believe it was sort of asked before, but I just want to return to it. So I'm just wondering the various ways that the ag market can sort of correct itself to higher prices. Like, does this just happen? Are we just waiting on an exogenous shock, or can the industry, the industry really have the wherewithal to correct oversupply in corn, for instance? You know, it's interesting, Ben. I'm being the senior merchant here over 40 years in this business. You know, I started all of them under $2 in the 80s, and it always has interactions by the land global.

Benjamin Bienvenu: And if I could just ask one more, and I believe it was sort of asked before, but I just want to return to it. So I'm just wondering the various ways that the ag market can sort of correct itself to higher prices. Like, does this just happen? Are we just waiting on an exogenous shock? Or can the industry, does the industry really have the wherewithal to correct oversupply?

Ben: Great. And if I could just ask one more, and I believe it was sort of asked before, but I just want to

Speaker Change: return to it. So I'm just wondering the various ways that

Patrick Bowe: You know, it's interesting, Ben. I've been a senior person here for over 40 years in this business.

Speaker Change: in corn, for instance.

Speaker Change: You know, it's interesting, Ben, I'm being the senior person here over 40 years in this business. When I started, coal was under $2 in the 80s, and it always has been a reaction to supply and demand globally.

Patrick Bowe: When I started, corn was under $2 in the 1980s, and there have always been reactions by demand globally. And we've continued to increase demand on a global scale, and we've continued to increase production on a global scale. And Mother Nature always saw us as a curveball in one part of the world or another.

Patrick Bowe: And we continue to increase demand on a global scale, and continue to decrease production on a global scale. And Mother Nature will always start to hurt both in one part of the world or another. This last season, though, we managed to get across globally, coming out the shock and creating war, and the amount you saw in some parts of the world, or prices skyrocketed. Yes. Three year period with elevated prices and elevated farmer income. I'm just waiting for the US farmer. Now we have abundant stocks and abundant crops. It's in the market of us. And I think for people like us, where I think focus is on merchandising and how we can manage that risk, and work on our customers all the time to deal with the high price or low price.

Speaker Change: And we continue to increase demand on a global scale, and we continue to increase production on a global scale.

Speaker Change: and Mother Nature will always cause hurtful in one part of the world or another.

Patrick Bowe: This last season, though, we've had good crops globally, coming off the shock of the Ukraine war. And on balance, we saw in some parts of the world where prices skyrocketed. We had a three-year period with elevated prices and elevated farmer income. It was great for the U.S. farmer. Now we have abundant stocks and abundant crops, and so the market adjusts. And I think for people like us, our big focus is on retailing and how we can manage that risk and work with our customers all the time, whether it's a high price or a low price.

Speaker Change: In some parts of the world where prices skyrocketed, we had a three-year period with elevated prices and elevated farmer income, which is great for the U.S. farmer. Now we have abundant stocks and abundant crops, and so the market adjusts.

Speaker Change: And I think for people like us, our big focus is on merchandising and how we can manage that risk.

Patrick Bowe: And I think the market will correct by itself. If no one can do anything to make the market change in that regard, it's going to be what production, supply, and demand are. It looks as though going into the fall, we're going to have a big corn crop in the Midwest. Very muted sense to, especially corn prices, going into the 25. So that's the environment we're in right now, with softer overall commodity prices.

Patrick Bowe: And I think the market will correct by itself. If no one can do anything to make the market to change in the market, it's going to be a good production and it's part of us. It looks as though going in the fall and then a big core crop in mid-western should be very in a muted sense to especially corn prices going in to 25. So the environment we're in right now, more softer overall planning price. Thank you for the collar.

Speaker Change: and work on our customers all the time, whether it's a high price or a low price.

Speaker Change: And I think the market will correct by itself, it's just no one can do anything to make the market do it.

Speaker Change: It looks as though, going into the fall, we're going to have a big corn crop in the Midwest. So it should keep very muted sense to, especially corn prices, going into 2025. So that's the environment we're in right now, more softer overall commodity price.

Benjamin Bienvenu: Great. Thank you for the color. I'm going to hop back in the queue.

Ben Mayhew: I'm going to hop back in the queue.

Jason Miner: The next question comes from Jason Miner of Bloomberg Intelligence. Please go ahead. Thanks. Good morning, everybody. First, just on the renewal diesel feed stock trading. I know we were sort of on the path to two billion pounds, and I'm just wondering about the sort of the given take here. I wonder if we're building up some pent-up activity that could mean a pop later on or just your thoughts on the path to sort of two billion pounds. Yeah, I'll take that. Thank you for the question. We are as confident today as ever that we will get to two billion pounds.

Jason Miner: The next question comes from Jason Miner of Bloomberg Intelligence. Please go ahead.

Jason Miner: Thanks, good morning everybody. First, on renewable diesel feedstock trading, I know we were sort of on the path to two billion pounds, and I'm just wondering about the sort of the give-and-take here. I wonder if we're building up some pent-up activity that could mean a pop later on or just your thoughts on the path to sort of two billion pounds.

Speaker Change: Please go ahead.

Speaker Change: Thanks, good morning everybody. First, just on the renewable diesel feedstock trading, I know we were sort of on the path to two billion pounds, and I'm just wondering about the sort of the give and take here. I wonder if we're building up some pent-up activity that could mean a pop later on.

Speaker Change: or just your thoughts on the path to sort of two billion pounds.

William Krueger: Yeah, I'll take that. Thank you for the question.

Speaker Change: Yeah, I'll take that. Thank you for the question.

William Krueger: We are as confident today as ever that we will get to two million pounds. The opportunities, as we're getting closer to what I'm going to say is the max capacity in renewable diesel, now are going to shift to better utilization and having run times increase at those plants. But we continue to see quarter-over-quarter volume increases that would indicate that we are going to be able to achieve that and, likely even exceed it.

Patrick Bowe: The opportunities as we're getting closer to what I'm going to say is max capacity in renewable diesel. Now it's going to shift to better utilization and having run times increase those plants, but we continue to see order over quarter volume increases that would indicate that we are going to be able to achieve that. And likely even exceeded.

Speaker Change: As confident today as ever that we will get to 2 million pounds. The opportunities as we're getting closer to what I'm going to say is max capacity in renewable diesel.

Speaker Change: now is going to shift to better utilization and having run times increase at those plants, but we continue to see quarter-over-quarter volume increases that would indicate that we are going to be able to achieve that and likely even exceed it.

Patrick Bowe: Great, you know, stick on that for a second. There's a little bit of investigation. It looks like underway on some possible counterfeit use cooking oil imports. I was wondering if there's some action taken against some of those. So that create opportunities or maybe even hinder some of your feed stock trading, or is it just unrelated. I'm going to take it to unrelated. The one net effect if there is a restriction put in the place on you go, which is what I think your reference to there that should drive DCO crisis higher. And that will benefit us not only with our already deed stock business, but it'll also help us on our ethanol profitability at the plant level.

William Krueger: Great, you know, I'll stick on that for just a second. There's a little bit of an investigation, it looks like it's underway on some possible counterfeit used cooking oil imports. I was wondering if there's some action taken against some of those, would that create opportunities or maybe even hinder some of your feedstock trading, or is it just unrelated?

Speaker Change: Great. You know I'll stick on that for just a second. There's a little bit of investigation it looks like underway on some possible counterfeit used cooking oil imports. I was wondering if there's some action taken against some of those. Would that create opportunities or maybe even hinder some of your feedstock trading or is it just unrelated?

Patrick Bowe: I'll tell you it's unrelated. The one net effect, if there is a restriction put into place on UCO, which is what I think you're referencing there, that should drive DCO prices higher, and that will benefit us not only with our RV feedstock business, but it'll also help us with our ethanol profitability at the plant level. So yeah, we see whichever way that comes down, we don't think that affects the Andersons RV feedstock business, and if it does come down against the Yuko, it will likely increase our ethanol results.

Speaker Change: and that will benefit us.

Speaker Change: Not only with our RV feedstock business, but it'll also help us on our ethanol profitability at the plant level. So, yeah, we see whichever way that comes down, we don't think that affects the Andersons RV feedstock business. And if it does come down against the Yuko, likely we'll increase our ethanol results.

Patrick Bowe: So yeah, we see whichever way that comes down. We don't think that affects the Anderson's already deed stock business. And if it does come down against the UCO, likely will increase our ethanol results. And Jason said, "we're not involved in the importation of any oil or this, alleging that you're looking out important to come in." So it's something we don't participate in at all, but we do support our domestic suppliers of UCO and other products that can feed the renewable diesel. So how do they think that's probably getting involved in the market? Got it. Thanks for that.

Patrick Bowe: And Jason, this is Pat. We're not involved in any importation of any oil or whether it's alleged that you still can all import to the company, so it's something we don't participate in at all, but we do support our domestic suppliers of Yuko and other products that can feed the renewable diesel customers, so having that get straightened out is probably a good thing overall for the market.

Speaker Change: And Jason, this is Pat. We're not involved in any importation of any oil or whatever, but it's alleged that these cooking oil imports have come into something new.

Speaker Change: still haven't participated at all, but we do support our domestic suppliers.

Speaker Change: of UCO and other products that can feed the renewable diesel customers. So having that get straightened out is probably a good thing overall for the market.

Jason Miner: Got it, thanks for that, very clear. So just one other one, kind of stepping back, I think you've touched on a lot of this already, but when you look at this result, and you kind of look at the second half of this year, how do you feel about the path to the 2025 EBITDA targets? And it sounds like more M&A I'm hearing you say, but what, you know, what's moving around, and how do the buckets that get us there look? And this is Brian on the phone.

Patrick Bowe: Very clear.

Brian Wright: So just one other one, kind of stepping back. I think you touched on a lot of this already, but when you look at this result, you kind of look at the second half of this year. How do you feel about the path to the 2025 EBITDA targets, and it sounds like more M&A. I'm hearing you say, but what's moving around and how do the buckets that get us their look? This is Brian. I'll start and then maybe pass it in some color bills. I think, as mentioned before, we have a really cold ones with both $325.9 EBITDA.

Jason: Got it. Thanks for that. Very clear. So just one other one kind of stepping back I think you've touched on a lot of this already But when you look at this result you kind of look at the second half of this year

Speaker Change: How do you feel about the path to the 2025 EBITDA targets, and it sounds like more M&A I'm hearing you say, but what's moving around and how do the buckets that get us there look?

Brian Valentine: This is Brian. I'll start, and then maybe Pat's going to add some color or build it. I think, as I mentioned before, we have a, well, our early 12 months were about $355 million at the end of the top. So to get to that run rate target goal by the end of next year is going to require more M&A than we originally expected. You know, our pipeline remains active and robust. And so if, you know, if two or three of these things are able to come to fruition, we can make really good progress. But at the same time, we're going to be, and continue to be, disciplined and responsible. We have a state-of-the-art process that we use to review projects.

Brian: This is Brian . I'll start and then maybe Pat can add some color or build. I think as mentioned before, yeah, we have, well, our early 12 months was about $355 million at the end of the month. So to get to that run rate target goal by the end of next year is going to require more M&A than we originally expected. You know, our pipeline remains active and robust and so if, you know, if two or three of these things are able to come to fruition, we can make really good progress. But at the same time, we're going to be, continue to be disciplined and responsible. We have a state-of-the-art process that we use to review projects. We're going to make sure that they fit strategically and are close to our core and also are going to generate appropriate shareholder returns and

Brian Wright: So to get to that run rate target goal by the end of next year is going to require more M&A than we originally expected. Our pipeline remains active and robust, and so if two or three of these things are able to come to fruition, we can make really good progress. But at the same time, we're going to continue to be disciplined and responsible. We have a state-to-gate process that we use to review projects. We're going to make sure that they fit strategically and are close to our core, and also are going to generate appropriate travel to returns.

Brian Valentine: We're going to make sure that they fit strategically and are close to our core, and we're also going to generate appropriate shareholder returns. And we're actually in the process of doing some strategy refresh work. You probably recall that three years ago, we did a deeper dive that ultimately led to us divesting the rail segment. This is more of a refresh update, but there have been a lot of market trends that have changed over the past few years.

Brian Wright: And we're actually in the process of doing some strategy refresh update work. You probably recall that three years ago, we did an Uber die that ultimately led us to besting the rail segment. This is more a refresh update, but there's been a lot of market trends that have changed over the past few years. When you think about all the trends and renewables, and you think about EV penetration rates, and the Inflation Reduction Act was not in place three years ago. So there's a lot of exciting opportunities in place, but then the typing and sequencing is going to be in a very disciplined, logical manner.

Speaker Change: We're actually in the process of doing some strategy refresh update work. You probably recall that three years ago we did a deeper dive. That ultimately led to us divesting the rail segment.

Brian Valentine: When you think about all the trends in renewable energy and you think about EV penetration rates and, you know, the Inflation Reduction Act was not in place three years ago. So there are a lot of exciting opportunities in place. But then, you know, the timing and sequencing is going to be in a very disciplined, logical manner. So I don't know if Heather or Bill would like to add anything.

Speaker Change: This is more a refresh update, but there's been a lot of market trends that have changed over the past two years when you think about all the trends in renewables and you think about EV penetration rates and, you know, the Inflation Reduction Act was not in place three years ago. So there's a lot of...

Speaker Change: exciting opportunities in place.

Speaker Change: But then, you know, the typing and sequencing is going to be...

Brian Wright: So I don't know if that's a bill of humanity. But if you have to place that down, you know, Jason mentioned earlier your volatility came in our market, and it would be a very high-modified situation. The market coming this year is very bad for other companies in the world. There's no supply to that. Our strategy is when we want to play in those areas. And we see opportunities in the act to apply change for us to grow. And now, as the buyer comes in the early years, the sick and certain environments made us want to increase the market that could fit for us well.

Patrick Bowe: Yeah, I think just to add on to what Jason mentioned earlier, you know, volatility came into our market with very high commodity prices. And, you know, that's a record coming in this year. You've heard that from other companies as well. There's no surprise to that.

Bill: in a very disciplined, logical manner. So I don't know if the other Bill, if you want to add anything. Yeah, just to add on, you know, Jason, you mentioned earlier, you know, volatility came in our market with very high commodity prices, and, you know, that's...

Patrick Bowe: Our strategy for what we want to play was very consistent, and we see opportunities in the ag supply chain for us to grow. And now, as Brian commented earlier, the thinking frame environment has maybe brought some things to market that could fit us well. And so we see this opportunity to deploy the cash that we've generated over the last three years into good investments to grow the company, as well as improve the assets we had talked about at all points earlier.

Speaker Change: I'm happy to come in this year and present from other companies as well. It's no surprise to that our strategy and what we want to play is very consistent.

Speaker Change: and we see opportunities.

Speaker Change: in the ag supply chain for us to grow.

Speaker Change: And now, as Brian commented earlier, the thinking-frame environment has maybe brought some things to market that could fit for us well. And so we see this opportunity to deploy the cash that we've generated over the last three years.

Brian Wright: And so we've seen this opportunity to deploy the cash that we carry in over the last three years. is to gain investments to grow the company, as well as include the asset we had talked about a couple of points earlier. So we see the North Island Act supply chain is a really good opportunity for both one current, and we want to continue to invest in that. And since that, we can reach our inventory targets by investing in that. So the first of the five soon are gold that we think we could achieve. We came up with 400 a year ago.

Speaker Change: to grow the company, as well as improve the assets we had talked about at all points earlier.

Patrick Bowe: So we see the North American ag supply chain as a really good opportunity for growth in the long term. And we want to continue to invest in that and think that we can reach our even dollar targets by investing against that. So 475 is still our goal that we think we can achieve. We came up over 400 a year ago. It's somewhat in this lower commodity price environment now, but we're still optimistic about the long term as we were before. So we're pretty positive about how we can deploy capital and make good returns on that investment.

Speaker Change: We see the North American Ag supply chain is a really good opportunity for health.

Speaker Change: Long-term, and we want to continue to invest in that and think that we can reach our end-of-life targets.

Speaker Change: by investing against that, so 435 is still our goal that we think we can achieve.

Brian Wright: It's getting someone in the slower money price environment now. Or it's optimistic about the long-term as we're before. So we're pretty positive about how we can pull the capital and make good returns for that investment. Great. They're looking forward to seeing what materializes. Thanks very much. I'll have back in you.

Speaker Change: We came up over 400 a year ago. It's somewhat in this lower commodity price environment now, but we're optimistic about the long-term as we're before. So we're pretty positive about how we can deploy capital and make good returns for that investment.

Jason Miner: Great. Well, I'm looking forward to seeing what materializes. Thanks very much. I'll hop back in queue.

Speaker Change: Great. Well, looking forward to seeing what materializes. Thanks very much. I'll hop back in queue.

Operator: This concludes our question and answer session.

Michael Hoelter: This concludes our question and answer session. I would like to turn the call back over to Mike Hoelter for closing remarks.

Michael Hoelter: I would like to turn the call back over to Mike Hoelter for closing remarks. Thanks, Alan. We want to thank you all for joining us this morning.

Speaker Change: This concludes our question and answer session. I would like to turn the call back over to Mike Hoelter for closing remarks.

Michael Hoelter: Thanks, Alan. We want to thank you all for joining us this morning. Our next earnings conference call is scheduled for Tuesday, November 5th, 2024, at 11 a.m. Eastern Time, when we will review our third quarter results. As always, thank you for your interest in The Andersons, and we look forward to speaking with you again soon.

Operator: The conference is now concluded. Thank you for attending today's

Operator: Our next starting conference calls scheduled for Tuesday, November 5, 2024, at 11 a.m. Eastern Time when we will review our third quarter results. As always, thank you for your interest in the Andersons, and we look forward to speaking with you again soon.

Mike Hoelter: Thanks, Alan. We want to thank you all for joining us this morning. Our next earnings conference call is scheduled for Tuesday, November 5, 2024 at 11 a.m. ET, when we will review our third quarter results.

Speaker Change: As always, thank you for your interest in the Andersons, and we look forward to speaking with you again soon.

Operator: Conference is now concluded. Thank you for attending today's presentation. You may now disconnect.