sentences:  The endophyte produces two classes of alkaloids, loline alkaloids and the pyrrolopyrazine, peramine, which are insecticidal and insect deterrent, respectively, and presence of the fungus increases drought tolerance, nitrogen utilization, phosphate acquisition, and resistance to nematodes.Recently, natural strains of "E. coenophiala" with little or no ergot alkaloid production have been introduced into tall fescue for new cultivar development.These strains are apparently not toxic to livestock, and also provide some, but not necessarily all, of the benefits attributable to the "common toxic" strains in the older tall fescue cultivars.