(Bloomberg) -- Corteva Inc. shares rose the most in three months after the seed and pesticide maker posted quarterly earnings that beat expectations while its CEO signaled a strong outlook for farmer spending.

Corteva rose as much as 7% to $57.70 in New York, the biggest intraday gain in a month, after reporting adjusted per-share operating earnings that beat analysts’ estimates.

A robust appetite for farm-produced goods is expected to drive demand for seeds in 2024, Chief Executive Officer Chuck Magro said Thursday during Corteva’s first-quarter earnings call. The crop protection business, which saw sales plunge 20% in the first quarter, is expected to return to volume growth in the year’s second half, he said.

“We continue to see record-setting demand for grain, oilseeds, feed, and biofuels,” Magro said. “In order to meet this growing demand, farmers are investing in premium seed and crop protection technologies to enhance and protect yield.”

Read More: Corteva Shares Rise as Q1 ‘Well Above’ Guidance: Street Wrap

Corteva and other agriculture companies are counting on crop demand to spur farmers to spend more on this season’s plantings in hopes of bumper harvests and higher commodity prices. But slowing price growth and a recent trend of later-than-usual purchases by growers, who have been whipsawed over the last several years by inflation and volatile markets, have been a challenge.

Net sales in Corteva’s crop protection business fell 20% in the first quarter from the same period a year ago, mainly due to lower volume and prices, the US firm said in its earnings statement. Still, Magro said seed orders are reflecting strong future demand and Corteva plans to bring about 500 new products to market this year, with about 300 new seed hybrids and varieties.

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