Are they poised to rebound? ; Tyson Foods: Leader in consumable meats. Gladstone believes farmland is also a good investment because it has had lower volatility than the S&P 500 Index and the MSCI US REIT Index in the past 15 years. With a high dividend yield of 3.5%, Bunge is an attractive stock for income investors. Market data powered by FactSet and Web Financial Group. Agricultural Commodities/Milling Stocks The agricultural commodities/milling sector includes companies involved in crop production, livestock management and animal feed. As the global population grows, so does the need for improved agricultural production. Fresh Del Monte is one of the world’s largest producers of fruit, and was founded in 1886. This, in turn, resulted in weaker demand for farming equipment, as farmers postponed or canceled orders for new equipment. Scotts Miracle-Gro earns a place on this list because it is a strong business with significant competitive advantages. The company’s durable competitive advantages will fuel its long-term growth. SMG is benefiting from the resilience of the U.S. housing market during the coronavirus crisis, and the growing demand for indoor growing products. The trust owns 127 farms, comprising 94,000 acres valued at $1 billion. The company has undergone a business transformation in recent years, with multiple acquisitions to boost its global reach. 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. The securities listed in this page are organized into two tables. 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. The Agricultural Services segment utilizes its extensive global grain elevator, transportation networks, and port operations to buy, store, clean, and transport agricultural commodities. On August 14th, Caterpillar announced that its rolling three-month retail machine sales declined 20%. Energy & Transportation was the hardest-hit segment last quarter. CF earnings call for the period ending September 30, 2020. Demand for all three nutrients is heavily reliant on the health of planting seasons for major crops such as corn, soybean, and wheat. Archer Daniels Midland has a huge global network that includes ~482 crop procurement locations, and more than 340 food and feed processing locations. Today, it is an industrial giant, manufacturing heavy machinery used in the construction and mining industries. CF Industries manufactures and distributes nitrogen fertilizer products in North America. This creates a long-term demand driver for agricultural stocks. Flavors and fragrances are high-margin products mostly manufactured through synthetic chemistry, but specialty agriculture has a place in the market, too. 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. For now, investors can only watch and wait for these futuristic opportunities to become accessible to their portfolios. Bayer, FMC, and Corteva Agriscience are all leveraging their scale to spread risk across a diverse geographic area. 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. This has helped the company remain profitable. Previously Caterpillar provided a 2020 outlook, anticipating $8.50 to $10.00 in EPS. For the third quarter, sales declined 11% to $8.925 billion, as the company continues to struggle with the COVID-19 pandemic. ADM remained strongly profitable during the recession, and grew its earnings-per-share by ~8% in 2009, a highly impressive performance. The question is whether Fresh Del Monte is able to capitalize. Feeding the world’s growing population is a major challenge that will need to be solved. Therefore, Fresh Del Monte is uniquely positioned to serve the world’s growing population and demand for food. ADM’s core Ag Services & Oilseeds segment manages ~10% of global agriculture commodity volumes. The past few years have been difficult for Deere, as the company dealt with a severe industry downturn. Agriculture started around 14,000 years ago. Caterpillar ended the third quarter with $9.3 billion of enterprise cash and more than $14 billion in available liquidity sources. From its acquisition of Monsanto, Bayer now has the leading biologicals brand on the market today through a partnership with Novozymes. 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. 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. In the 2020 third quarter, net sales increased approximately 18.4% compared to the third quarter of 2019. Individual products, businesses, and even entire industries (newspapers, typewriters, horse and buggy) go out of style and become obsolete. Within the agriculture sector, there are a number of stocks that provide steady dividend payments. These stocks include seafood producer Mowi ASA, food company Bunge Ltd., oil … The company is a leading player in the field of agricultural business. You can choose among companies providing agricultural products and services such as fertilizers (nitrogen, phosphate, and potash, with niche categories sprinkled in), pesticides (which protect plants against insects, fungi, weeds, and other nuisances), seeds, crushing and processing, and livestock. Individual investors can gain exposure to the emerging opportunity in a few ways. While the coronavirus pandemic led to significantly lower demand for Fresh Del Monte’s products, it experienced a relatively modest decline last quarter. 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. For example, Beyond Meat relies on pea protein today for its products, but might be tempted to switch at least some supply to chickpeas if the product lives up to the hype. The food giant beats Wall Street estimates and guides for a positive fiscal 2021. 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. Adjusted diluted earnings-per-share tripled over the same time. The old DuPont and the old Dow Chemical merged and then split into three in 2019, one of those pieces being Corteva Agriscience. Raising its ROIC has meaningfully improved its cash flow, which fuels its impressive cash returns to shareholders. Based on our estimate of $7.10 in full-year EPS, Deere stock trades for a P/E ratio above 36. CF is a global leader in nitrogen with massive production and distribution capabilities. Fortunately, Deere successfully navigated the challenging climate with a strict focus on cost controls. Earlier this year, the company raised its regular dividend by 7%, and also approved a special dividend of $5 per share. That’s because the demand drivers of the industry make it extremely likely to be around far into the future. 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. As you can see in the pie graph below, ASX-listed agriculture companies are dominated by Incitec Pivot, GrainCorp, Nufarm and Inghams Group. 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. Despite the difficult operating climate in 2020, AGCO expects relatively flat end-market demand, leading to projected sales of approximately $8.9 billion. And, the growth of the global population is tied to increasing agricultural efficiency. Despite the economic uncertainty presented by the coronavirus, CF Industries has held up relatively well in 2020. The number nine spot in the list of top performing stocks of the Agriculture sector is taken by FMC Corporation (FMC). The best agriculture stocks. Industrial biotechnology will need to leverage established agricultural supply chains to reduce operating costs, and the industry is still figuring out how to scale and what products to manufacture. Archer Daniels Midland is one of the largest agriculture companies in the world. Is your portfolio exposed to the opportunity? They help fuel food growth through services which procure, transport, store, process, and merchandise agricultural commodities and products. 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. Archer Daniels Midland sources, transports, processes, and distributes a number of products. Not only that, SMG owns a minority interest in TruGreen, the largest residential lawn care service business, and in Bonnie Plants, the largest retail marketer of edible gardening plants. Top Agriculture Stocks To Buy Now: CF Industries CF Industries [ NYSE:CF ] is a fertilizer company that manufactures nitrogen products, such as ammonia, urea ammonium nitrate, and ammonium nitrate. This should allow the company to maintain its dividend, which currently yields 0.7%. Healthier foods like avocados are seeing strong demand as a result. The company has approximately 60 different oilseeds products, and possesses over 120 processing assets in 16 countries around the world. It’s a safe bet we will be practicing agriculture far into the future. The company currently pays a quarterly dividend of $0.10 per share, after recently doubling its quarterly dividend. Here are three to put on your radar. The company's investments in smart farming technology are starting to pay off. Even better, all 10 stocks pay dividends to shareholders, making them attractive for income investors. However, we also find the stock to be overvalued. Sales of Equipment Operations, Agriculture & Turf, and Construction & Forestry segments declined -12%, -5%, and -28%, respectively. The total market capitalisation of all ASX-listed agriculture companies is $18 billion. If you’re in a hurry, below are our picks for the most valuable agriculture stocks as of this writing. Archer Daniels Midland’s businesses include the processing of cereal grains and oilseeds, as well as agricultural storage and transportation. It is a relatively new addition to the Dividend Aristocrats list. The trust offers long-term sale leaseback transactions, traditional leases of farmland, and outright purchases of farm properties. This makes Archer Daniels Midland a Dividend Aristocrat. Today, bananas represent less than half of sales, and the company has significantly broadened its product line. As the global population continues to grow, the amount of available farmland in the U.S. continues to decline. M. Agricultural machinery industry ; This page was last edited on 18 May 2017, at 20:39 (UTC). Bunge Limited was founded all the way back in 1818. Agribusiness is a life-sustaining operation, and there are numerous ways for investors to own a piece of this action. SMG also has a subsidiary, The Hawthorne Gardening Company, which services the hydroponic growth segment. Dec 7, 2020, Corinne Cardina | Kandi Technologies (NASDAQ:KNDI) inks agreement with the Hangzhou Branch of the Agricultural Bank of China.The partnership was established among Zhejiang Kandi Vehicles Co., … Adjusted earnings-per-share fell 21% in the third quarter. Where to Buy. Read J. Frank Sigerson's latest article on Investing.com A rapidly expanding global middle class will increase caloric demand per capita and shift preferences to more protein-heavy foods. Nov 10, 2020, Motley Fool Transcribers | Agriculture stocks reap cash flow harvests in the process, and in turn pass that success on to … Despite the damage done by the coronavirus, we expect Caterpillar to generate long-term growth. As the world changed after the war, food production rapidly industrialized -- first with factory farming, fertilizers, and pesticides, later evolving to include genetically modified crops, digital agriculture, plant-based proteins, and vertical farming. As money-losing competitors get forced out of the market, this should help the company generate long-term earnings growth. Fresh Del Monte has greatly diversified its product portfolio in the past 20 years. Like Fresh Del Monte, the stock has long-term growth potential, but is not especially attractive for income investors due to its low dividend yield. CF is optimally positioned to benefit from a return to higher fertilizer prices, especially because it has completed major growth projects in recent years. These products include ductile iron pipes, engines, tractors, combine harvesters, reaper binders, chain saws, trimmers, rice planters, and excavators. Advancements in data crunching, satellite imagery, and mobile computing power have given rise to digital agriculture. Nitrogen is manufactured using synthetic chemistry, while potash and phosphate are mined. The notable recovery from the second quarter was due primarily to higher lease revenues. The company has held up well in 2020. Deere stands to benefit from major global trends—specifically, the growing population and increasing demand for food. Wirtgen is a leading manufacturer of road construction equipment, which will expand and diversify Deere’s Construction & Forestry segment. Instead, these agriculture stocks are issued by companies that manufacture chemical fertilizers or create genetically modified seeds. The company had a very strong third quarter, with adjusted FFO-per-share up 40% from the previous quarter. Earnings-per-share of $2.57 fell from $2.81 per share in the year-ago period. Stocks AG are the largest UK manufacturer of specialist wheels for agricultural tractors and other machines used in the agricultural, horticultural and amenity sectors. Pure Flavor from Stem to Leaf. Like Scotts Miracle-Gro, CF Industries [ CF ] has diverse revenue streams that include diesel exhaust fluid, nitric acid, and aqua ammonia. The company expects to cross $1 billion in online sales for the first time in 2020. The company also sports some of the lowest nitrogen production costs on the planet. Deere has a strong balance sheet, excellent brand power, and long-term growth potential. While weak pricing continues to serve as a headwind, CF Industries also expects global demand growth to outpace capacity additions. One focus is engineering high-protein, neutral-tasting chickpeas, which could become a next-generation plant-based protein source. Dec 28, 2020, Rhian Hunt | As a heavy machinery manufacturer, AGCO would be severely impacted by a global economic slowdown. 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. and a handful of emerging markets. Chickens are coming home to roost for an industry that has long been plagued by scandal. For example, in the third quarter the company acquired four new farms, consisting of 1,398 total acres for approximately $35.6 million. These companies tend to follow broader economic trends during times of expansion and recession. For example, Deere acquired the Wirtgen Group for $5.3 billion, which was the largest acquisition in the company’s history. Lastly, its Renaissance Food Group produces and distributes a variety of healthy fresh packaged food products, such as tomatoes and papayas, through retail channels. Gladstone’s business is made up of three different options available to farmers, all of which are done on a triple-net basis. These companies -- many with healthy profits, cash flows, and dividends -- offer excellent opportunities for investors. 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