Therefore, we recommend investors wait for a significant downturn before buying Deere. Excluding currency translations, sales increased 20% year-over-year. Mining companies are expanding operations as commodity prices remain favorable, and construction continues to expand in the U.S., China, and other key markets around the globe. Sales volumes hit a company record over the first nine months of the year. Top 10 Best Agriculture Companies in India: Indian agricultural companies produce myriad products, from hybrid seeds to complex chemicals that help boost production and are environmentally safe. Acquisitions will help Gladstone capitalize on its growth opportunities. Performance of the Stock These companies have typically performed well for investors, but they come with risks, too. One focus is engineering high-protein, neutral-tasting chickpeas, which could become a next-generation plant-based protein source. It processes these seeds into vegetable oils and protein meals. The scale required for operations to span multiple continents, account for geopolitical shortcomings, and insulate crops from the risks of weather patterns and commodity markets has created a long list of agricultural titans. Agricultural machinery companies manufacture industrial machinery, farm machinery, and fluid piping systems. Advancements in data crunching, satellite imagery, and mobile computing power have given rise to digital agriculture. Archer Daniels Midland’s businesses include the processing of cereal grains and oilseeds, as well as agricultural storage and transportation. Today agribusiness is big business, touching a large array of different market industries. Here are three to put on your radar. In the third quarter, revenue of $9.9 billion fell 23% year-over-year. The stock has a 1.2% dividend yield. The emerging markets are an increasingly important area for Bunge. Today, it is an industrial giant, manufacturing heavy machinery used in the construction and mining industries. The food sector includes companies who are hungry for innovative agtech solutions, food producers using cutting edge technology and trendy infant formula stocks tapping into growing demand from abroad. According to Calavo, consumption of avocados in the United States has risen at an 8% annual rate over the past 10 years. The company's investments in smart farming technology are starting to pay off. Consumers remain willing and able to spend more on their lawns and gardens. Dec 10, 2020, Demitri Kalogeropoulos | The trust owns 127 farms, comprising 94,000 acres valued at $1 billion. The number nine spot in the list of top performing stocks of the Agriculture sector is taken by FMC Corporation (FMC). Its largest business is Corn Processing, where it converts corn into sweeteners, starches, and bioproducts. 7 Agricultural Stocks and ETFs to Buy and Hold Demand for food is expected to increase as the world's population grows. It’s a safe bet we will be practicing agriculture far into the future. Get a list of the most promising stocks in the energy sector. Sales of Equipment Operations, Agriculture & Turf, and Construction & Forestry segments declined -12%, -5%, and -28%, respectively. In this article, we have identified 10 companies related to precision agriculture that are revolutionizing the farming landscape. Perhaps more than any other industry, agriculture is here to stay. These companies tend to follow broader economic trends during times of expansion and recession. Deere has updated its outlook, anticipating net income of approximately $2.25 billion for the full year. This should allow the company to maintain its dividend, which currently yields 0.7%. Here’s a list of eight excellent agriculture stocks spanning these opportunities. First, the rising global population is a huge catalyst. Individual products, businesses, and even entire industries (newspapers, typewriters, horse and buggy) go out of style and become obsolete. AGCO Corporation manufactures agricultural machinery, such as tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage equipment, grain storage, and protein production systems. The trust offers long-term sale leaseback transactions, traditional leases of farmland, and outright purchases of farm properties. Demand for all three nutrients is heavily reliant on the health of planting seasons for major crops such as corn, soybean, and wheat. The corresponding change in the … 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. On an adjusted basis, which excludes $0.12 in pre-measurement losses of pension obligation, EPS would have equaled $1.34. The Edible Oil Products segment includes production and sale of vegetable oils, shortenings, margarines, and mayonnaise. Consumers are increasingly seeking out animal-free proteins. In the 2020 third quarter, net sales increased approximately 18.4% compared to the third quarter of 2019. The stock has a dividend yield of 1.5%. The goal of digital platforms is to increase the efficiency of food production, improve farm-level incomes, and create more sell-through opportunities for major retail brands. Fresh Del Monte has a positive long-term growth outlook. Find Plenty in a Store Near You. The company also sports some of the lowest nitrogen production costs on the planet. It should be no surprise, then, that the leading digital agriculture platforms include Bayer, Corteva Agriscience, and Nutrien -- all of which can directly benefit from leveraging existing relationships with farmers. The company expects to cross $1 billion in online sales for the first time in 2020. Raising its ROIC has meaningfully improved its cash flow, which fuels its impressive cash returns to shareholders. SMG manufactures lawn and garden care products. Agribusiness today is full of investing opportunities. M. Agricultural machinery industry ; This page was last edited on 18 May 2017, at 20:39 (UTC). The Indian Agro-industry consists of cooperatives and local giants to multinational companies (MNCs). Shares currently yield 1.6%. We believe the following 10 stocks are the best picks in the agriculture industry right now, due to a combination of business quality and future growth prospects. Household penetration of avocados is still below other common fruits, which means Calavo has a long runway of future growth up ahead. As money-losing competitors get forced out of the market, this should help the company generate long-term earnings growth. Today, Bunge is a holding company. This list of companies and startups in Europe in the agriculture space provides data on their funding history, investment activities, and acquisition trends. Another positive catalyst is the company’s massive global platform and competitive advantages, it is perfectly situated to capitalize on this emerging theme. With a high dividend yield of 3.5%, Bunge is an attractive stock for income investors. The company has invested heavily to expand its retail segment, which allows it to capture higher-margin sales by selling directly to farmers. Its new facilities will process 220 million pounds of chicken and turkey each year. and a handful of emerging markets. These brands lead their respective categories, and SMG has the financial strength to advertise its brands to retain their leadership positions. Since that time, it has seen its annual revenue rise to nearly $5 billion and today, it trades with a market capitalization of $7 billion. Produce so clean, nutritious, and tasty, it's easy to fit into every meal. Caterpillar is a large-cap stock with a market capitalization of $94 billion. Today, bananas represent less than half of sales, and the company has significantly broadened its product line. Dec 7, 2020, Corinne Cardina | The company also has a prepared food segment. Agriculture Stocks. 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). Lastly, its Renaissance Food Group produces and distributes a variety of healthy fresh packaged food products, such as tomatoes and papayas, through retail channels. A steep and prolonged decline in agriculture commodity prices resulted in falling farm incomes around the world. It has a variety of brands, some of which include Challenger, Fendt, Massey Ferguson, GSI, and Valtra. Our fair value estimate is a P/E ratio of 14, implying significant downside risk from current levels. 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. 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. 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. They help fuel food growth through services which procure, transport, store, process, and merchandise agricultural commodities and products. We have ranked our 10 favorite agriculture stock picks below. This makes Archer Daniels Midland a Dividend Aristocrat. You can download the complete list of all 36 agricultural stocks (along with important financial metrics such as price-to-earnings ratios, dividend yields, and dividend payout ratios) by clicking on the link below: Click here to download your free list of agricultural stocks now, along with important metrics like dividend yields and price-to-earnings ratios. Bayer, FMC, and Corteva Agriscience are all leveraging their scale to spread risk across a diverse geographic area. Check out the recent articles feed below for the latest news. Agricultural Commodities/Milling Stocks The agricultural commodities/milling sector includes companies involved in crop production, livestock management and animal feed. Nov 10, 2020, Motley Fool Transcribers | The Company offers Scout, the Company’s first fully automated remote sensing solution for precision agriculture. This result was primarily due to lower sales volume driven by lower end-user demand for equipment and services. ADM’s core Ag Services & Oilseeds segment manages ~10% of global agriculture commodity volumes. And in a series of transactions from 2018 to 2019, FMC completed the spinoff of its lithium segment, sold its nutrition segment, and purchased assets from the old DuPont to become one of the largest global agrichem companies. The company also has a strong credit rating of A from Standard & Poor’s. Top Agriculture Stocks in India by Market Capitalization: Get the List of Top Agriculture Companies in India (BSE) based on Market Capitalization Caterpillar was founded in 1925. 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. The company has held up well in 2020. CF Industries manufactures and distributes nitrogen fertilizer products in North America. Cargill. Energy & Transportation was the hardest-hit segment last quarter. The question is whether Fresh Del Monte is able to capitalize. Archer Daniels Midland has a huge global network that includes ~482 crop procurement locations, and more than 340 food and feed processing locations. The agricultural revolution allowed greater population growth (and precluded the industrial revolution). It also has 9 owned vessels and another 4 chartered vessels. According to the company, agricultural production will need to double in the first half of this century to keep pace with the demand for food. This creates a long-term demand driver for agricultural stocks. CF earnings call for the period ending September 30, 2020. Avocados are a “super food”, and are growing in popularity due to their high nutrition. Services will be also be a major long-term growth catalyst. In the most recent quarter, revenue of $270 million fell 25%, as a solid 18% increase in volumes was not enough to offset lower prices and weak sales in the Renaissance Food Group and Foods segments. Dec 4, 2020, Lawrence Rothman, CFA | Vertical farming is a hyped technology, but relatively impractical at present given the scale required to make it work. That’s because the demand drivers of the industry make it extremely likely to be around far into the future. Gladstone is a monthly dividend stock, meaning it pays 12 dividends per year to shareholders, instead of the more typical four payments. 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. For example, in 1996 approximately 75% of the company’s sales were derived from bananas. These stocks include seafood producer Mowi ASA, food company Bunge Ltd., oil … ; Archer Daniels Midland: Massive legacy winner with solid diversification. The old DuPont and the old Dow Chemical merged and then split into three in 2019, one of those pieces being Corteva Agriscience. 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. For the first nine months, EPS has grown 30% from $1.83 to $2.38 per share. A rapidly expanding global middle class will increase caloric demand per capita and shift preferences to more protein-heavy foods. During the Great Recession, the company reported earnings-per-share of $2.84 in 2008 and $3.06 in both 2009 and 2010. As the global population grows, so does the need for improved agricultural production. The steady global economic growth over the past several years has fueled positive growth for Caterpillar. Our Produce About Us Where to Buy. Despite the difficult operating climate in 2020, AGCO expects relatively flat end-market demand, leading to projected sales of approximately $8.9 billion. Calavo Growers operates in the farm products industry. There are unique considerations in each ag-related industry, and as you’re assessing what agricultural stocks are right for you, consider how these opportunities and risks align with your individual investing preferences. Overall, the stock managed to realized price change of 15.2 percent during the given time period. However, the major risk for AGCO would be a recession. If you’re in a hurry, below are our picks for the most valuable agriculture stocks as of this writing. Earnings-per-share of $2.57 fell from $2.81 per share in the year-ago period. The current yield on Fresh Del Monte stock is 1.7%, which is roughly on par with the S&P 500 Index average yield. 1. Both Nutrien and CF Industries see better days ahead for fertilizer markets as North American farmers rebound from historic flooding and China gobbles up nearly $40 billion in additional American agriculture products as part of a recent trade deal. Bunge has improved its ROIC trends in recent periods. Meanwhile, CF Industries specializes in nitrogen fertilizers. Deere has a strong balance sheet, excellent brand power, and long-term growth potential. Combined with future earnings growth, we expect mid-to-high single-digit total shareholder returns over the next five years. We believe the 10 stocks examined in this article are the best within the industry. That's especially true in places with poor soil quality, such as Brazil and China. It was founded in 1924. According to the company, by 2050 demand for food is expected to rise ~70% from current levels. 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. 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. Scotts Miracle-Gro earns a place on this list because it is a strong business with significant competitive advantages. 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