About The Andersons

The Andersons, Inc. operates in the trade, renewables, and nutrient & industrial sectors. Segments The company operates through three segments: Trade, Renewables, and Nutrient & Industrial. Trade The Trade segment is a diversified business focusing on capturing profits through merchandising and managing logistics across a wide range of commodities. The segment specializes in the movement of physical commodities such as: whole grains, grain products, feed ingredients and domestic fuel products among other agricultural commodities. The company has a broad geographic footprint with a diversified portfolio of physical commodities, although the principal commodities sold by the company are corn, wheat and soybeans. Exported commodity sales are made both through intermediaries and direct shipments to foreign countries. Trade also operates grain elevators across the United States and Canada where income is earned on commodities bought and sold through the elevator, commodities that are purchased and conditioned for resale, and commodities that are held in inventory until a future period, earning an elevation margin. Elevation margins consist of appreciation in the basis value of commodities held, which represents the difference between the cash price of a commodity in one of the company's facilities and an exchange traded futures price (basis); appreciation or depreciation between different futures exchange contract months (spread); and commodities stored for others upon which storage fees are earned. The segment's asset-based grain handling business is seasonal in nature in that the largest portion of the principal grains are harvested and delivered from the farm and commercial elevators typically in July for wheat and September through November for corn and soybeans; however, depending on market conditions a significant portion of the principal grains may also be bought, sold and handled throughout the year. Renewables The Renewables segment produces, purchases and sells ethanol and co-products, offers facility operations, and provides risk management and marketing services to the ethanol plants it invests and operates in. The segment demonstrates an expertise in ethanol plant management, logistics and commercialization of ethanol and co-products with a focus on leading the industry in margins per bushel. The business leverages partnerships, which are discussed in further detail below, to expand market knowledge and shared technology across its plants. The segment also operates a merchandising and trade portfolio of ethanol, ethanol co-products and other biofuels, such as renewable feedstocks. The company owns a 50.1% interest in The Andersons Marathon Holdings LLC (TAMH) and Marathon Petroleum Corporation (Marathon) owns the remaining 49.9% interest. TAMH consists of four ethanol plants located in Iowa, Indiana, Michigan, and Ohio. These plants have a combined nameplate capacity of 405 million gallons but have a history of outperforming the nameplate capacity. The company operates these facilities under a management contract, provides corn origination, ethanol marketing, and risk management services. During the year ended December 31, 2023, the company also owned 51% of ELEMENT, LLC (ELEMENT) and ICM, Inc. (ICM) owned the remaining 49% interest. ELEMENT consists of a 70 million-gallon-per-year bio-refinery in Kansas. The company had acted as the manager of the facility, responsibilities which were assumed per the Management Services Agreement dated January 1, 2021, and ELEMENT was concluded to be a variable interest entity (VIE) and had been consolidated within the company's Consolidated Financial Statements. On April 18, 2023, ELEMENT was placed into receivership and a receiver was appointed, which took possession and control of the rights and interests of ELEMENT. With this appointment, while retaining its investment in ELEMENT, the company ceased to have a controlling financial interest and was no longer deemed to be the primary beneficiary in the subsidiary. Substantially all of the ELEMENT's assets were sold on January 31, 2024. Nutrient & Industrial The Nutrient & Industrial segment is a manufacturer, distributor and retailer of agricultural and related plant nutrients, liquid industrial products, corncob-based products, pelleted lime and gypsum products, and various turf fertilizer, pesticide and herbicide products. The segment is organized into the three divisions listed below: Ag Supply Chain - The Ag Supply Chain division provides wholesale nutrients and farm services focused primarily in the Eastern Grain belt. The wholesale nutrients business formulates, stores and distributes dry and liquid agricultural nutrients, pelleted lime, gypsum and soil amendments. The major nutrient products are typically bought and sold as commodities. The farm centers offer a variety of essential crop nutrients, crop protection chemicals and seed products in addition to application and agronomic services to commercial and family farmers. Engineered Granules - The Engineered Granules division manufactures and distributes proprietary professional lawn care products that are primarily sold into the golf course and professional turf care markets, serving both U.S. and international customers. The company also performs contract manufacturing services to formulated and packaged fertilizer and weed and pest control products to various markets. It also manufactures value add soil amendments sold into agricultural and turf markets. Additionally, corncob-based products are manufactured for a variety of uses including laboratory animal bedding and private-label cat litter, as well as absorbents, blast cleaners, carriers and polishers. The principal sources for corncobs are seed corn producers. The products are distributed throughout the U.S. and international markets. Specialty Liquids - The Specialty Liquids division manufactures and distributes a broad range of fertilizers, micronutrients, and soil amendments. The business has a diverse portfolio of specialty products which support more sustainable farming practices and command higher margins. The division is also a manufacturer and distributor of industrial products throughout the U.S. and Puerto Rico including nitrogen reagents, calcium nitrate, deicers, and dust abatement products. Government Regulation Grain sold by the company must conform to official grade standards imposed under a federal system of grain grading and inspection administered by the United States Department of Agriculture (USDA). The production levels, markets and prices of the grains that the company merchandises are affected by United States government programs, which include acreage control and price support programs of the USDA. The U.S. Food and Drug Administration (FDA) has developed bioterrorism prevention regulations for food facilities, which require that the company registers its grain operations with the FDA, provide prior notice of any imports of food or other agricultural commodities coming into the United States and maintain records to be made available upon request that identifies the immediate previous sources and immediate subsequent recipients of its grain commodities. In regard to its investments in ethanol production facilities, the company follows standards implemented by the Renewable Fuel Standard (RFS) and Environmental Protection Agency (EPA). In addition to the attention the company places on the health and safety of its employees, the operations of its facilities are regulated by the Occupational Safety and Health Administration (OSHA). History The Andersons, Inc. was founded in 1947. The company was incorporated in 1987.