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Acquisition also had a negative impact on income from operations. Furthermore, for some major crops, prices of agricultural products came under substantial pressure in the face of fierce competition. The segment's loss was due primarily to special charges of 0341 million. These special charges related primarily to severance payments resulting from workforce reductions, additional charges from the use of the inventory step-up to higher market values as well as the write-down of research in process. The segment's assets increased significantly in 2000 primarily due to the acquisition. Total assets increased to 06, 607 million in 2000 from 01, 949 million in 1999 due to additions to tangible fixed assets of 0807 million, to intangible fixed assets, including goodwill, of 02, 453 million and due to an increase in current assets. Through the acquisition, BASF obtained major production sites in the United States, France and Brazil, as well as research and development centers in the United States, United Kingdom, Brazil and Japan. The segment's research and development costs increased 44.7% to 0275 million due to the integration of the research and development activities acquired from AHP. These activities include a research and development center in Princeton, New Jersey as well as research facilities in the United Kingdom, Brazil and Japan. Due to the acquisition, the number of the segment's research and development projects increased significantly. Through the acquisition of AHP's crop protection business, BASF expects to achieve annual cost savings of approximately 0250 million as of 2002, with half the amount being achieved in 2001. Due to its presence in key markets and in all crop protection product groups, the Agricultural Products segment expects to strengthen its market position in all major regions and significantly increase income from operations in 2001. 1999 Compared with 1998 In the Crop Protection renamed ``Agricultural Products'' on July 1, 2000 ; segment, sales to third parties remained substantially unchanged in 1999, totaling 01, 745 million, despite a drop in demand, particularly in North America and Western Europe. Fungicide sales increased 4% to 0549 million, although the global fungicide market decreased by approximately 5%. Herbicide sales fell 6% to 0900 million in line with the global herbicide market decrease of 7%. In North America, low agricultural commodity prices and increased planting of genetically modified crops in 1999 increased price competition for crop protection products and the preference of farmers for low-priced, off-patent products. Despite the increase in price competition, sales of the Crop Protection segment in North America increased 5% in 1999 to 0609 million. This increase was mainly due to the contribution to sales of Micro Flo, a leading supplier of generic products in the United States. BASF acquired a majority stake in Micro Flo in mid-1998. More than 70% of Micro Flo's sales are currently in the field of insecticides, growth regulators and fungicides. In Western and Central Europe, lower commodity prices, deteriorating economic conditions for farmers, an increase in the rate of land left uncultivated and reduced fungal diseases as a result of weather conditions in 1999 adversely affected the market for crop protection products. Due to these factors, sales of the Crop Protection segment in Western Europe and Central Europe decreased 4% in 1999 to 0736 million. Despite a significant decrease in the South American market for crop protection products in 1999, sales in South America remained relatively stable as a result of growing fungicide sales. Sales in 1999 were 0249 million as compared to 0252 million in 1998. Income from operations decreased slightly in 1999 to 0195 million from 0203 million in 1998. Expenditures for research and development decreased slightly to 0190 million in 1999 from 0194 million in 1998 and remained approximately 11% of the Crop Protection segment's sales. As a result of research and development efforts in previous years, the Crop Protection segment launched 129.

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