I talk to a lot of professional investors on a daily basis on MicroCapClub, and more and more investors are expecting a bull market of epic proportion in agriculture stocks over the next decade. The companies in this industry are the world's largest agricultural processors and food ingredient providers. To manage this growing opportunity, Archer Daniels Midland has added a “Flexitarian Solutions” department to its company -- although management is quick to note the company developed textured vegetable proteins in 1966. Archer Daniels Midland’s businesses include the processing of cereal grains and oilseeds, as well as agricultural storage and transportation. Earnings-per-share of $2.57 fell from $2.81 per share in the year-ago period. Individual products, businesses, and even entire industries (newspapers, typewriters, horse and buggy) go out of style and become obsolete. The market has been challenging in recent years, but fertilizers remain an essential part of food production. The global population is expected to reach 9 billion by then. Bunge has hardly been affected by the coronavirus pandemic, as the company has seen steadily improving earnings over the past several quarters. The company has held up well in 2020. Tyson Foods is leveraging its knowledge of animal proteins to assist start-ups in navigating markets, distribution channels, and consumer preferences. The company is headquartered in Faridabad, Haryana and has marketing operations in more than 40 countries around the globe. While the coronavirus pandemic led to significantly lower demand for Fresh Del Monte’s products, it experienced a relatively modest decline last quarter. Income investors might view Gladstone favorably, because it has a 3.6% dividend yield, increases the dividend on a regular basis, and pays a monthly dividend. The emerging markets are an increasingly important area for Bunge. If Calavo continues to generate high levels of growth, it is conceivable shareholders could be in line for another strong dividend hike next year and beyond. Earlier this year, the company raised its regular dividend by 7%, and also approved a special dividend of $5 per share. On a positive note, rising global populations are a long-term growth catalyst for Bunge, which will result in higher demand for agricultural commodities of all sorts. The company expects to cross $1 billion in online sales for the first time in 2020. Calavo is an industry leader, with durable competitive advantages. Gladstone collected 99% of rent in October, further indicating a recovery from the pandemic. Fresh Del Monte is one of the world’s largest producers of fruit, and was founded in 1886. Top Agriculture Stocks in India by Market Capitalization: Get the List of Top Agriculture Companies in India (BSE) based on Market Capitalization We believe the combination of FFO growth and dividends can produce total returns in the high-single digits, making Gladstone an attractive stock for income investors. You can quickly navigate the article using the table of contents below. For the third quarter, sales declined 11% to $8.925 billion, as the company continues to struggle with the COVID-19 pandemic. Despite the damage done by the coronavirus, we expect Caterpillar to generate long-term growth. And while this might be a new opportunity, hundreds of millions of acres are covered as of early 2020. The Scotts Miracle-Gro Company: Diversified agricultural play with strong growth. The low volatility of farmland has been proven during the coronavirus pandemic, as Gladstone’s occupancy has never fallen below 99.5%, and it had an occupancy rate of 100% in the third quarter. During the Great Recession, the company reported earnings-per-share of $2.84 in 2008 and $3.06 in both 2009 and 2010. The company reported adjusted earnings per share of $0.89 vs. $0.77 in the 2019 third quarter, an increase of 15.6% year-over-year. The food giant beats Wall Street estimates and guides for a positive fiscal 2021. These projects required a heightened level of investment by CF, but those projects are now complete. Like other agriculture companies… Today, it is an industrial giant, manufacturing heavy machinery used in the construction and mining industries. 1. COVID-19 has hurt Tyson Foods's results. Are they poised to rebound? Deere operates two core segments, Agriculture & Turf and Construction & Forestry, with most of its sales derived from Agriculture & Turf equipment. The securities listed in this page are organized into two tables. It will require all hands on deck, with some new technologies sprinkled in, to meet the challenge -- and industry companies are hard at work on these projects. This list may not reflect recent changes . CF earnings call for the period ending September 30, 2020. Deere, which manufactures farm equipment for the agriculture industry, will likely see sustained demand for many years as a result. Agribusiness is a life-sustaining operation, and there are numerous ways for investors to own a piece of this action. Agriculture Stock #10: Deere & Company (DE), Agriculture Stock #9: Gladstone Land Corp. (LAND), Agriculture Stock #8: Fresh Del Monte Produce (FDP), Agriculture Stock #7: AGCO Corporation (AGCO), Agriculture Stock #6: Calavo Growers (CVGW), Agriculture Stock #5: CF Industries Holdings (CF), Agriculture Stock #3: Scotts Miracle-Gro (SMG), Agriculture Stock #2: Caterpillar Inc. (CAT), Agriculture Stock #1: Archer Daniels Midland (ADM). The stock has an attractive 2.4% dividend yield, and has increased its dividend each year for 25 consecutive years. Insights about top trending companies, startups, investments and M&A activities, notable investors of these companies, their management team, and recent news are also included. Adjusted earnings-per-share of $7.24 for the year represented a 62% year-over-year increase. Like Scotts Miracle-Gro, CF Industries [ CF ] has diverse revenue streams that include diesel exhaust fluid, nitric acid, and aqua ammonia. The company produces and distributes fresh fruit and vegetables, primarily bananas, pineapples, non-tropical fruit, avocados, melons, tomatoes, vegetables, and more. Cargill in the United States of America (USA) is headquartered just outside of Minneapolis, Minnesota. ; Archer Daniels Midland: Massive legacy winner with solid diversification. These brands lead their respective categories, and SMG has the financial strength to advertise its brands to retain their leadership positions. In over the year, the top agricultural company diversified its business. If you’re in a hurry, below are our picks for the most valuable agriculture stocks as of this writing. Bayer, FMC, and Corteva Agriscience are all leading developers of biologicals. For the time being, vertical farming is relatively inaccessible to individual investors. Incorporated in the year 1944, Escorts Ltd. is an Indian engineering company that operates in the areas of agri-machinery, construction, material handling equipment, and railway equipment. Its family of brands includes Scotts, Miracle-Gro, Ortho, and more. We have a favorable long-term view of the company’s growth prospects. Find Plenty in a Store Near You. Despite an onslaught of headwinds, Nutrien’s business generated $1.6 billion in first-half 2020 operating cash flow to support its market-beating dividend yield. These stocks include seafood producer Mowi ASA, food company Bunge Ltd., oil … Its core business is to supply and transport agricultural commodities. The combination of a solid dividend yield, a recession-resistant business model and a long history of growing dividends, makes ADM our top agriculture stock. Sales volumes hit a company record over the first nine months of the year. SMG also has a subsidiary, The Hawthorne Gardening Company, which services the hydroponic growth segment. Agricultural Commodities/Milling Stocks The agricultural commodities/milling sector includes companies involved in crop production, livestock management and animal feed. This makes Archer Daniels Midland a Dividend Aristocrat. Dec 7, 2020, Corinne Cardina | Dec 10, 2020, Demitri Kalogeropoulos | A number of agribusiness applications on the horizon aren’t quite investing opportunities yet but should be part of an agriculture investor’s watchlist in the years ahead. Its largest business is Corn Processing, where it converts corn into sweeteners, starches, and bioproducts. Investing in farm and agriculture stocks means investing in an industry that: This article analyzes 10 of the best agricultural stocks in detail. SMG is benefiting from the resilience of the U.S. housing market during the coronavirus crisis, and the growing demand for indoor growing products. Based on our estimate of $7.10 in full-year EPS, Deere stock trades for a P/E ratio above 36. Separately, Hawthorne sales soared 68% in the most recent quarter, and 61% for the full fiscal year, making SMG a stealth play on the emerging growth story of marijuana. Humanity has made tremendous progress in reducing famine and food shortages in the last 70 years, but that doesn’t make food security any less important in the 21st century. List of top 50 best agricultural companies in the USA ! This undeniable trend is evident in Calavo’s huge growth over the past decade. This has helped the company remain profitable. The turning point for agricultural advancement was World War II: More people died from starvation than from combat during the years of conflict, which proved to be a valuable lesson for humanity. Agribusiness today is full of investing opportunities. Today, bananas represent less than half of sales, and the company has significantly broadened its product line. Avocados are a “super food”, and are growing in popularity due to their high nutrition. Advancements in data crunching, satellite imagery, and mobile computing power have given rise to digital agriculture. From its acquisition of Monsanto, Bayer now has the leading biologicals brand on the market today through a partnership with Novozymes. SMG manufactures lawn and garden care products. CF Industries manufactures and distributes nitrogen fertilizer products in North America. Nitrogen is manufactured using synthetic chemistry, while potash and phosphate are mined. In 2018, Bayer acquired Monsanto to become the most dominant player in the industry. For the first nine months, EPS has grown 30% from $1.83 to $2.38 per share. For now, investors can only watch and wait for these futuristic opportunities to become accessible to their portfolios. As expected, the coronavirus crisis has had a negative impact on the company’s sales to start 2020, although the company has seen a recovery in recent months. And, the growth of the global population is tied to increasing agricultural efficiency. Therefore, we recommend investors wait for a significant downturn before buying Deere. Demand is growing for grain storage and protein production, particularly in the emerging markets, which is a positive indicator for AGCO. Check out the recent articles feed below for the latest news. They help fuel food growth through services which procure, transport, store, process, and merchandise agricultural commodities and products. Bunge is one of the world’s largest soybean producers and processors, which could keep the company in prime position, considering soy protein is a leading source of plant-based proteins (for example, Impossible Foods uses soy). Updated on November 19th, 2020 by Bob Ciura. Within the agriculture sector, there are a number of stocks that provide steady dividend payments. That’s because the demand drivers of the industry make it extremely likely to be around far into the future. The company is a leading player in the field of agricultural business. Many agricultural companies attempt to make farming profitable for those who grow corn, wheat, or soybean crops in the soil or cultivate orchards of fruit or nuts. CF is a global leader in nitrogen with massive production and distribution capabilities. A steep and prolonged decline in agriculture commodity prices resulted in falling farm incomes around the world. Caterpillar was founded in 1925. The company also has a strong credit rating of A from Standard & Poor’s. However, NTR stock remains below its 52-week high of $55.25. Despite the economic uncertainty presented by the coronavirus, CF Industries has held up relatively well in 2020. Archer Daniels Midland stock has a dividend yield of nearly 3%, and the company has increased its dividend for 45 consecutive years. For much of human history, food security has been a deciding factor in the rise and fall of civilizations. Gladstone has a solid long-term growth runway up ahead, due to the favorable economics of its key markets. The Company has its geographic presence across the U.S. Yamaha Motor Co., Ltd. The Indian Agro-industry consists of cooperatives and local giants to multinational companies (MNCs). For example, CF invested heavily in its Donaldsonville and Port Neal expansion projects. For example, Caterpillar has the ability to leverage down variable costs per unit, which boosts profit margins. It has a variety of brands, some of which include Challenger, Fendt, Massey Ferguson, GSI, and Valtra. The corresponding change in the … It is also taking equity stakes when possible, and nurturing its own animal-free protein brands. Despite the difficult operating climate in 2020, AGCO expects relatively flat end-market demand, leading to projected sales of approximately $8.9 billion. CF has an attractive dividend yield of 3.8%. For example, Deere acquired the Wirtgen Group for $5.3 billion, which was the largest acquisition in the company’s history. While weak pricing continues to serve as a headwind, CF Industries also expects global demand growth to outpace capacity additions. The current yield on Fresh Del Monte stock is 1.7%, which is roughly on par with the S&P 500 Index average yield. For example, in 1996 approximately 75% of the company’s sales were derived from bananas. This figure would be substantially lower if we excluded Incitec Pivot’s explosives business and the food manufacturing businesses of companies such as Sunrice and Select … The stock has a dividend yield of 1.5%. Vertical farming is a hyped technology, but relatively impractical at present given the scale required to make it work. Our fair value estimate is a P/E ratio of 14, implying significant downside risk from current levels. Dec 2, 2020, Rich Smith | It also has 9 owned vessels and another 4 chartered vessels. Demand for all three nutrients is heavily reliant on the health of planting seasons for major crops such as corn, soybean, and wheat. Consumers are increasingly seeking out animal-free proteins. Biologicals are microbe-based treatments of soils or crops designed to boost yields, improve plant defenses against pests, and potentially reduce dependence on chemical inputs. Bunge is a rare outperformer in the agriculture industry, given the broad challenges of the coronavirus pandemic to start 2020. Meanwhile, the Wild Flavors and Specialty Ingredients (WFSI) segment manufactures, sells, and distributes flavors, colors, proteins, and emulsifiers. Caterpillar is a large-cap stock with a market capitalization of $94 billion. The agriculture industry is rapidly changing in the current economic climate, although many companies have fared relatively well through the global pandemic. Pure Flavor from Stem to Leaf. The trust offers long-term sale leaseback transactions, traditional leases of farmland, and outright purchases of farm properties. 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