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Cuts to USAID Halt U.S. Farm Research at Universities, Sources Say

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The Trump administration’s dismantling of the U.S. Agency for International Development (USAID) has caused farm research laboratories at land-grant universities in 13 states to cease operations, according to six lab directors. The closures mark another blow to U.S. agriculture, following efforts by President Donald Trump to overhaul the federal government. The halted research was designed to improve seed and equipment technology and develop international markets for U.S. agricultural products.

The shutdowns have compounded difficulties already faced by farmers, who have experienced disruptions to government food aid programs, agricultural grants, and loans. Land-grant universities, which were established on land granted by the federal government, have been particularly affected.

“For U.S. farmers, this is not good,” said Peter Goldsmith, head of the University of Illinois’ Soybean Innovation Lab, one of the affected facilities. The State Department did not provide a response to inquiries about the closures.

The 17 laboratories that received stop-work orders were part of USAID’s Feed the Future Innovation Labs program, which partnered with countries such as Malawi, Tanzania, Bangladesh, and Rwanda to conduct agricultural research. This research benefited U.S. farmers by developing production practices that could be applied domestically or providing early warnings about potential pest threats.

David Hughes, director of the USAID Innovation Lab on Current and Emerging Threats to Crops at Penn State University, said the shutdown limits their ability to help farmers fight pests and diseases. One halted project focused on controlling a virus harming banana crops in Tanzania.

David Tschirley, who chairs the Feed the Future Innovation Lab Council and runs a USAID-funded lab at Michigan State University, said the lab network employs about 300 people and collaborates with up to 4,000 partners abroad. “It presents an American face to the world that is a very appreciated face,” Tschirley said, emphasizing the research’s role in promoting national security.

Stop-work orders were issued to all 17 labs at the end of January after Trump froze most foreign aid. Since then, the labs have received no further guidance from the State Department. Some universities have attempted to cover costs temporarily, with mixed success.

At Michigan State, Tschirley’s lab has been allowed to retain employees under the assumption that USAID will eventually approve funding. However, Goldsmith laid off all 30 staff members at his lab last week and plans to close it entirely by April 15. His lab had previously assisted African farmers with soy planting and helped companies establish soy-processing plants.

Some agribusiness partners of the labs include Bayer, Corteva, BASF, and Archer-Daniels-Midland. Bayer stated it is assessing the funding halt, while other companies did not comment.

The funding freeze is part of broader actions by Trump to reshape the federal government. For example, U.S. commodity purchases were temporarily suspended following Trump’s January 24 order halting most foreign aid. Additionally, federal farm program payments have been delayed due to Trump’s directive freezing loans and grants, though this order has been blocked in court.

Bayer Shareholders Urge CEO to Accelerate Turnaround Amid Declining Shares

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Bayer AG (BAYGn.DE) is under increasing pressure from its shareholders to quicken its turnaround efforts following a dramatic 14.5% drop in share value earlier this week. The German agriculture and pharmaceutical giant has seen its stock hit a 20-year low after warning of weaker farmer demand impacting earnings for 2025.

CEO Bill Anderson, who has been implementing restructuring measures since his appointment, is being urged to deliver tangible results to restore shareholder confidence and reverse the company’s downward trajectory.

Challenges Facing Bayer

  1. Weak Market Conditions: A slump in farmer incomes, exacerbated by broader agricultural trends, has hit Bayer and competitors like BASF and Corteva.
  2. Specific Setbacks: Bayer faces unique challenges, including delays in U.S. regulatory approval for a new generation of soy seeds, expected to dent 2025 earnings.
  3. Monsanto Aftermath: The $63 billion acquisition of Monsanto in 2018 continues to weigh on Bayer through debt and ongoing U.S. litigation over claims that Monsanto’s Roundup weedkiller causes cancer.
  4. Pharma Struggles: While new drugs like Nubeqa (prostate cancer) and Kerendia (kidney disease) show promise, bestselling blood thinner Xarelto is declining due to patent expiration.

Shareholders Demand Action

Cost Cutting and Efficiency

  • CEO Anderson’s efforts include cutting managerial roles, streamlining decision-making, and reducing bureaucracy.
  • Shareholders, including Deka Investment and Union Investment, say these changes have not yet significantly impacted revenue or costs.

Pipeline Strengthening

  • Investors like Union Investment’s Markus Manns emphasize the need for a stronger pharmaceutical pipeline and clearer long-term growth strategies.

Market Performance and Valuation

  • Bayer’s warning of declining earnings contrasts with previous analyst expectations of a 3% increase in adjusted earnings by 2025.
  • Despite an attractive valuation at 3.9 times estimated forward earnings (compared to BASF at 11.5 and Corteva at 18.7), analysts at BMO Capital Markets hesitate to recommend the stock due to contracting earnings.

CEO’s Vision and Investor Sentiment

Anderson has pledged to contain litigation risks and improve operational performance. However, shareholder patience is wearing thin. Ingo Speich from Deka warned that without results, management would face increased scrutiny.

While Bayer struggles to project when earnings will bottom out, Anderson remains optimistic about the company’s “bright future.” However, turning this vision into reality will require significant progress in both pharmaceuticals and agricultural products.

 

Key Movers in the Stock Market: Rocket Lab, Bavarian Nordic, H&R Block, and More

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In midday trading, several stocks showed significant movement, driven by a combination of company-specific news and broader market dynamics. Among the top gainers, Rocket Lab surged over 16%, reaching a 52-week high after successfully packing and shipping two Mars-bound spacecraft to Cape Canaveral for launch. These spacecraft were developed in collaboration with NASA and the University of California Berkeley’s Space Sciences Laboratory, reflecting Rocket Lab’s growing reputation in the space exploration industry.

Bavarian Nordic, a Danish biotech firm, also saw a sharp rise of more than 16% after it submitted data to the European Union’s drug regulator to extend the use of its mpox vaccine to teenagers. This move is seen as a crucial step in addressing the latest strain of the virus, with CEO Paul Chaplin emphasizing the importance of expanding vaccine approval for individuals aged 12 to 17.

Tax services provider H&R Block experienced a jump of over 16% following its fiscal fourth-quarter results, which exceeded Wall Street estimates. The company not only raised its dividend but also authorized a $1.5 billion stock buyback, signaling confidence in its continued growth. H&R Block’s positive outlook for fiscal 2025, projecting another year of revenue increases, further boosted investor sentiment.

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Bayer, the German life sciences giant, climbed more than 10% after winning a legal battle related to its Roundup weed and grass killer. The lawsuit had alleged that exposure to Roundup led to cancer, but Bayer’s recent court victory has eased concerns among investors, contributing to the stock’s rise.

Chinese e-commerce leader JD.com rose more than 5% after reporting stronger-than-expected quarterly earnings. The company’s second-quarter earnings surged 74% year over year, driven by price cuts that attracted cost-conscious consumers. This robust performance exceeded analysts’ expectations, reaffirming JD.com’s competitive position in the market.

In contrast, Applied Materials, a leading semiconductor equipment manufacturer, saw a 3% decline despite posting better-than-expected fiscal third-quarter results. Although the company’s earnings per share and revenue met expectations, the stock’s recent gains of 51% over the past year may have led to some profit-taking.

Packaging giant Amcor slid more than 5% after reporting slower sales in the latest quarter. The company’s net sales fell to $3.54 billion, down from $3.67 billion a year earlier, missing analyst expectations. Amcor faced declines in both its rigid and flexibles segments, contributing to the stock’s downward movement.

Finally, Coherent, an electronics manufacturer, gained 3.1% after exceeding Wall Street’s expectations in its fiscal fourth quarter. The company reported earnings of 61 cents per share on revenue of $1.31 billion, slightly above analysts’ predictions. Meanwhile, Sphere Entertainment rose 6.2% following an upgrade by JPMorgan, which highlighted the success of the company’s Las Vegas Sphere venue as a key attraction in the tourism market. Sphere’s plans to expand internationally also bolstered investor confidence.