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Tuesday, July 23, 2024

Agriculture Stocks to Buy And Hold – Top 10 List

Agriculture Stocks List

Most of the agriculture stocks in this list have seen declines in the past year, but have the potential for gains in 2024. While the Agriculture Industry has been hit in recent years, there is still a growing demand for food and fuel.

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1. Deere & Company (NYSE: DE)

Founded in 1837, Deere is a world leader in providing advanced products and services for agriculture, construction, and forestry. The company manufactures and distributes a wide range of equipment, including tractors, combines, harvesters, and precision agricultural tools. Deere’s business model focuses on delivering innovative solutions to improve efficiency and productivity for its customers while prioritizing sustainability.

DE Is also nearing its support level and if it holds, we could see a return back to around the ~410 Level.

DE Stock Chart. Agriculture Stock #1
Deere & Company 1-Year Price Data

2. Nutrien Ltd. (NYSE: NTR)

Nutrien is the world’s largest provider of crop inputs and services, playing a critical role in helping growers increase food production sustainably. The company produces and distributes fertilizers, crop protection products, and seed products. Nutrien’s business model involves a network of retail locations, providing farmers with products, services, and solutions to optimize crop yields and profitability.

Nutrien is currently in a downtrend that appears to be losing momentum. It’s currently nearing its support level, and it will be interesting to see whether or not it holds.

Nutrien Stock Chart. Agriculture Stock #2
Nutrien Ltd. 1-Year Price Data

3. Corteva, Inc. (NYSE: CTVA)

Corteva is a leading global agricultural chemical and seed company. Corteva provides farmers with a comprehensive portfolio of products and solutions. The company’s business model focuses on developing and delivering innovative products in two key segments: seed and crop protection. Corteva invests heavily in research and development to create advanced seed technologies and crop protection products that enhance farmer productivity and sustainability.

Corteva is currently in a downtrend but it appears to be losing momentum. It could probably reach its $56 price level in due time.

Corteva Stock Chart. Agriculture Stock #3
Corteva, Inc. 1-Year Price Data

4. Archer-Daniels-Midland Company (NYSE: ADM)

Archer Daniels is a global leader in human and animal nutrition and the world’s premier agricultural origination and processing company. ADM’s business model involves procuring, transporting, storing, processing, and merchandising agricultural commodities and products. The company transforms crops into products serving the food, animal feed, industrial, and energy markets worldwide.

ADM Stock is currently in a long-term downtrend. But it’s currently in a range near its recent support level. If ADM performs well fundamentally it could break its current downtrend and move toward the $72 level.

ADM Stock Price Chart. Agriculture Stock #4
Archer-Daniels-Midland Company 1-Year Price Data

5. Bunge Limited (NYSE: BG)

Bunge Limited is a leading global agribusiness and food company with integrated operations spanning the entire food value chain. The company’s business model includes originating, processing, and distributing oilseeds, grains, and other agricultural commodities. Bunge also produces value-added products such as specialty oils, milled products, and ingredients for the food, animal feed, and biofuel industries.

BG Stock is currently in a range in the middle of its resistance and support level. It could continue its range within 103-114, if it breaks above its resistance it could move to new yearly highs.

Bunge Limited Stock Price Chart. Agriculture Stock #5
Bunge Limited Stock Price Chart

6. FMC Corporation (NYSE: FMC)

FMC is a global agricultural sciences company that provides innovative solutions to growers worldwide. The company’s business model focuses on developing, manufacturing, and selling crop protection products, including insecticides, herbicides, and fungicides. FMC invests in research and development to create advanced crop protection technologies that help farmers enhance crop quality and yield while promoting sustainable agriculture practices.

FMC Stock had a steep decline leading into 2024. But that steep downtrend looks to be losing momentum, possibly creating a small uptrend with higher highs and lows. If FMC breaks above its $70 price level it could potentially target near the $90 resistance.

FMC Stock Price Chart. Agriculture Stock #6
FMC Corporation 1-Year Price Data

7. The Mosaic Company (NYSE: MOS)

The Mosaic Company is one of the world’s leading producers and marketers of concentrated phosphate and potash crop nutrients. The company’s business model involves mining and processing phosphate and potash minerals into crop nutrients, which are then distributed globally through its extensive distribution network. Mosaic’s products play a vital role in helping farmers improve crop yields and meet the growing global demand for food.

MOS Stock is currently in a steep downtrend that is not losing momentum, it’s likely to continue to decline. But if it manages to break out of its downtrend and move above the $44 level it’s likely to increase back to its recent high ~79.

MOS Stock Price. Agriculture Stock #7
The Mosaic Company 1-Year Price Data

8. AGCO Corporation (NYSE: AGCO)

AGCO Corporation is a global leader in the design, manufacture, and distribution of agricultural equipment and solutions. The company’s business model encompasses a full line of farm equipment, including tractors, combines, hay tools, sprayers, and forage equipment. AGCO’s products are distributed through a combination of independent dealers and distributors, serving farmers and agricultural contractors worldwide.

AGCO Stock is currently in a long-term range. It will be interesting if the lows made from 2022 will be able to hold. If they do, the price could potentially return back to around the $120 level.

AGCO Stock Price Chart.
AGCO Corporation 1-Year Price Data

9. CF Industries Holdings, Inc. (NYSE: CF)

CF Industries Holdings is a leading global manufacturer and distributor of nitrogen products for agricultural, industrial, and environmental applications. The company’s business model involves producing and selling nitrogen fertilizers, including ammonia, urea, and ammonium nitrate. CF Industries owns and operates world-scale nitrogen complexes strategically located in North America, serving both domestic and international markets.

CF Stock broke its range and is likely to continue to move to the downside. We could probably see a pullback to ~75 before that happens.

CF Stock Price.
CF Industries Holdings 1-Year Price Data

10. Darling Ingredients Inc. (NYSE: DAR)

Darling Ingredients is a global leader in creating sustainable food, feed, and fuel solutions from edible and inedible bio-nutrients. The company’s business model involves collecting and processing animal-based by-products and other natural materials into value-added ingredients for various industries. Darling Ingredients plays a crucial role in the circular economy by repurposing waste streams into usable products, such as renewable diesel and natural fertilizers.

DAR Stock is currently in a downtrend and it doesn’t seem to be losing momentum. However, once it does, you could potentially target around the $62 Level.

DAR Stock Price Chart.
Darling Ingredients Inc. 1-Year Price Data

Want to read my thoughts on CCEP Stock? Click Here.

The Importance of Agriculture in the U.S. Economy

Agriculture plays a crucial role in the United States economy, contributing significantly to the nation’s gross domestic product (GDP) and providing employment opportunities for millions of Americans. Despite recent challenges, the agricultural sector remains important for the economy.

According to data from the Bureau of Economic Analysis’ Value Added by Industry series, as reported by the American Farm Bureau Federation (https://www.fb.org/market-intel/farm-contribution-to-agricultural-gdp-at-record-low), agriculture contributed a record-high $1.05 trillion to U.S. GDP in 2016. This figure represents 5.7 percent of the total U.S. economy, showing the sector’s substantial impact.

However, it’s important to note that the farm production component of agricultural GDP has faced challenges in recent years. In 2016, farm production contributed $136.7 billion to U.S. GDP, a 6 percent decrease from the previous year and the lowest level since 2010. This decline is primarily attributed to falling commodity prices, which have put pressure on farmers’ incomes.

Despite the challenges faced by farm production, other sectors within agriculture continue to thrive. Food service and drinking places, food and beverage manufacturing, and food and beverage stores all saw increases in their contributions to GDP in 2016. These non-farm portions of the agricultural economy contributed a record $916 billion to U.S. GDP in the same year.

In 2024, agriculture contributing to GDP is now showing consistent growth, according to NBC Digital News.

The importance of agriculture varies by state, with some states relying more heavily on the sector than others. In 23 states, agriculture’s contribution to the state economy is greater than 5 percent, with states like Nebraska, Iowa, South Dakota, and Idaho seeing contributions of over 10 percent.

While the farm sector faces ongoing challenges, including projected drops in net farm income and record-high farm debt, agriculture as a whole remains a critical component of the U.S. economy.

The Growing Demand For Food and Fuel

According to recent data, agriculture, food, and related industries contributed a substantial $1.530 trillion to the U.S. gross domestic product (GDP) in 2023. This figure represents a significant 5.6% share of the overall economy.

Source: https://www.ers.usda.gov/data-products/chart-gallery/gallery/chart-detail/?chartId=58270

When examining the direct output of America’s farms, the contribution stands at $203.5 billion, accounting for approximately 0.7% of the U.S. GDP. However, it’s important to understand that this percentage doesn’t tell the whole story. The true impact of agriculture on the economy is far more extensive, as numerous related sectors rely heavily on agricultural inputs to generate added value.

The agricultural sector is vital to meeting the growing global demand for food, feed, and fuel. The companies mentioned above play important roles in supporting farmers, enhancing agricultural productivity, and promoting sustainable practices. Each company has a unique business model that contributes to the overall goal of improving the efficiency and sustainability of the agricultural value chain.

Deere & Company, AGCO Corporation, and Nutrien Ltd. focus on providing advanced equipment, technologies, and services to farmers, enabling them to optimize their operations and increase productivity. Corteva, Inc., FMC Corporation, and The Mosaic Company develop and distribute crop protection products and nutrients that help farmers protect their crops and improve yields.

Archer-Daniels-Midland Company and Bunge Limited are global leaders in agricultural processing and merchandising, connecting farmers to markets and transforming raw agricultural commodities into value-added products for various industries. CF Industries Holdings, Inc. specializes in nitrogen fertilizer production, supplying essential nutrients for crop growth.

Darling Ingredients Inc. stands out with its focus on sustainability and the circular economy, converting animal by-products and waste streams into valuable ingredients for food, feed, and fuel applications.

Climate Change

As the world faces the challenges of feeding a growing population while addressing climate change and resource scarcity, these companies are developing solutions and technologies to support sustainable agriculture. Their efforts in research and development, combined with their global reach and extensive distribution networks, position them as important players in shaping the future of the agricultural industry.

Investors looking to gain exposure to the agricultural sector may find these companies attractive due to their essential roles in the global food supply chain, their commitment to innovation, and their potential for long-term growth. However, as with any investment, it is important to conduct thorough research and consider factors such as market conditions, company financials, and individual risk tolerance before making investment decisions.

Lazarus Lucas is the Publisher, editor, and creator of LJLNews. Stock Market enthusiast, with an interest for politics. Independent trader, analyst, and asset manager. Lazarus publishes articles on LJLNews with technical analysis on various markets, such as currencies, stocks, and commodities. Contact: Lazaruslucas@ljlnews.com

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