US agro-chemical and seed company DuPont has reported a 7% increase in operating profits from its agriculture division, to just under $1.8bn, for its 2016 financial year. Profit margins within DuPont’s agriculture business increased 170 basis points in 2016, to a very strong 18.5%. DuPont said cost savings within the division and lower product costs were the main drivers of the improved result.

Turnover from agrichemical and seed sales declined 3% in the year, to $9.5bn, following a 1% decline in sales volumes and a 2% negative currency translation.

DuPont says agriculture continues to face challenges, as stocks of major crops keep the pressure on grain commodity prices and farm incomes. DuPont has forecast continued pressure on margins in the agriculture sector. The agri-chemical and seed giant sees more acres of US farmland planted in soya beans this year, with seed prices expected to rise in 2017.