SMG is benefiting from the resilience of the U.S. housing market during the coronavirus crisis, and the growing demand for indoor growing products. Its family of brands includes Scotts, Miracle-Gro, Ortho, and more. The Oilseeds Processing segment processes oilseeds, such as soybeans, cottonseed, sunflower seed, canola, rapeseed, and flaxseed. Deere generates enough cash flow to reward shareholders with dividends, while also investing in future growth. The trust owns 127 farms, comprising 94,000 acres valued at $1 billion. The company's investments in smart farming technology are starting to pay off. And while this might be a new opportunity, hundreds of millions of acres are covered as of early 2020. A rapidly expanding global middle class will increase caloric demand per capita and shift preferences to more protein-heavy foods. Calavo Growers operates in the farm products industry. First, the rising global population is a huge catalyst. Vertical farming is a hyped technology, but relatively impractical at present given the scale required to make it work. 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. The past few years have been difficult for Deere, as the company dealt with a severe industry downturn. Bunge is a rare outperformer in the agriculture industry, given the broad challenges of the coronavirus pandemic to start 2020. Its largest business is Corn Processing, where it converts corn into sweeteners, starches, and bioproducts. Agribusiness today is full of investing opportunities. Stocks AG are the largest UK manufacturer of specialist wheels for agricultural tractors and other machines used in the agricultural, horticultural and amenity sectors. Adjusted earnings-per-share nearly doubled in the third quarter, compared with the same quarter last year. The Company offers practical drone system for agricultural use. This undeniable trend is evident in Calavo’s huge growth over the past decade. By Kira Brecht, Contributor March 29, 2016. When’s the optimal time to apply fertilizer this season? Adjusted earnings-per-share of $7.24 for the year represented a 62% year-over-year increase. M. Agricultural machinery industry ; This page was last edited on 18 May 2017, at 20:39 (UTC). The Company has its geographic presence across the U.S. Yamaha Motor Co., Ltd. As the global population continues to grow, the amount of available farmland in the U.S. continues to decline. Demand is growing for grain storage and protein production, particularly in the emerging markets, which is a positive indicator for AGCO. The global population is expected to reach 9 billion by then. The notable recovery from the second quarter was due primarily to higher lease revenues. Archer Daniels Midland is a recession-resistant company. 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. Sales of Equipment Operations, Agriculture & Turf, and Construction & Forestry segments declined -12%, -5%, and -28%, respectively. Caterpillar is a shareholder-friendly company. Fresh Del Monte has a positive long-term growth outlook. This is an emerging trend in the United States; consumers are becoming much more aware of what they are eating. Like Scotts Miracle-Gro, CF Industries [ CF ] has diverse revenue streams that include diesel exhaust fluid, nitric acid, and aqua ammonia. The company also sports some of the lowest nitrogen production costs on the planet. A handful of nontraditional stocks also merit your consideration. Beeologics was among the first biotech companies in the world to race to find a cure for bee colony collapse disorder. For example, Caterpillar has the ability to leverage down variable costs per unit, which boosts profit margins. It is also taking equity stakes when possible, and nurturing its own animal-free protein brands. While weak pricing continues to serve as a headwind, CF Industries also expects global demand growth to outpace capacity additions. According to Calavo, consumption of avocados in the United States has risen at an 8% annual rate over the past 10 years. Despite the damage done by the coronavirus, we expect Caterpillar to generate long-term growth. How many seeds should a farmer place in each row in the northwest corner of their land? Avocados are a “super food”, and are growing in popularity due to their high nutrition. Stock and station agencies‎ (3 C, 8 P) Sugar companies‎ (2 C, 39 P) Agricultural supply stores‎ (2 C, 1 P) Pages in category "Agriculture companies" This category contains only the following page. But a wave of consolidations and broad expectations for improving market conditions could make a big difference in the 2020s. This company generated a healthy $718 million in first-half 2020 operating cash flow to support its market-beating dividend yield. 1. Caterpillar is a large-cap stock with a market capitalization of $94 billion. Earlier this year, the company raised its regular dividend by 7%, and also approved a special dividend of $5 per share. Nov 24, 2020, Rhian Hunt | In the meantime, let’s look at three stocks in the agricultural industry to monitor. Bayer, FMC, and Corteva Agriscience are all leveraging their scale to spread risk across a diverse geographic area. Gladstone has a solid long-term growth runway up ahead, due to the favorable economics of its key markets. Bunge operates through the following segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. Individual products, businesses, and even entire industries (newspapers, typewriters, horse and buggy) go out of style and become obsolete. Stocks Analysis by J. Frank Sigerson covering: Mosaic Co, Monsanto Company, Yield10 Bioscience Inc, Bunge Limited. CF earnings call for the period ending September 30, 2020. The agricultural revolution allowed greater population growth (and precluded the industrial revolution). Are they poised to rebound? Dec 7, 2020, Corinne Cardina | The company formed a $775 million, 50-50 joint venture with BP’s (BP) sugar and bioenergy assets in Brazil to provide future growth in South America. Individual products, businesses, and even entire industries (newspapers, typewriters, horse and buggy) go out of style and become obsolete. It is hoped that conditions will gradually improve over the remainder of the year. The companies in this industry are the world's largest agricultural processors and food ingredient providers. This creates a long-term demand driver for agricultural stocks. Within the agriculture sector, there are a number of stocks that provide steady dividend payments. 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. CF Industries generated net income of $1.07 per share over the first three quarters, along with adjusted EBITDA above $1.0 billion. The Best Agriculture Stocks For 2019. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. This should allow the company to maintain its dividend, which currently yields 0.7%. Interested investors should view this as a starting off point to more research. Dec 8, 2020, Rich Duprey | The company was founded in 1946 as a cooperative but eventually went public in 2005. 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. They’re excellent for investors with a long-term mindset: Of course, not all agriculture stocks are created equal. The company has approximately 60 different oilseeds products, and possesses over 120 processing assets in 16 countries around the world. Its competitive advantage is its global presence, which affords it economic scale. Sales volumes hit a company record over the first nine months of the year. Our fair value estimate is a P/E ratio of 14, implying significant downside risk from current levels. Agricultural machinery companies manufacture industrial machinery, farm machinery, and fluid piping systems. Deere operates two core segments, Agriculture & Turf and Construction & Forestry, with most of its sales derived from Agriculture & Turf equipment. Gladstone collected 99% of rent in October, further indicating a recovery from the pandemic. Will corn rootworms be worse than usual? Fortunately, Deere successfully navigated the challenging climate with a strict focus on cost controls. In the third quarter, revenue of $9.9 billion fell 23% year-over-year. 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. 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. Bunge has hardly been affected by the coronavirus pandemic, as the company has seen steadily improving earnings over the past several quarters. 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. 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. Excluding currency translations, sales increased 20% year-over-year. Earnings-per-share of $2.57 fell from $2.81 per share in the year-ago period. From brick-and-mortar to ecommerce and beyond, take advantage of the changing retail industry and make money by investing. Despite the difficult operating climate in 2020, AGCO expects relatively flat end-market demand, leading to projected sales of approximately $8.9 billion. 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. The steady global economic growth over the past several years has fueled positive growth for Caterpillar. We believe the 10 stocks examined in this article are the best within the industry. 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 company’s durable competitive advantages will fuel its long-term growth. During the Great Recession, the company reported earnings-per-share of $2.84 in 2008 and $3.06 in both 2009 and 2010. To succeed, consumer brands and start-ups (like Beyond Meat (NASDAQ:BYND), Impossible Foods, and more) need to deliver on nutrition, taste, texture, and price. For example, seeds can be coated in naturally occurring soil microbes. Agriculture started around 14,000 years ago. It has a variety of brands, some of which include Challenger, Fendt, Massey Ferguson, GSI, and Valtra. Here's an overview of six major opportunities and the investing style best served by each, listed in no particular order: The world’s major crop nutrients are nitrogen, potash, and phosphate. 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. The Fresh Products segment sizes, packs, and ripens avocados for delivery to its customers. Lastly, its Renaissance Food Group produces and distributes a variety of healthy fresh packaged food products, such as tomatoes and papayas, through retail channels. One focus is engineering high-protein, neutral-tasting chickpeas, which could become a next-generation plant-based protein source. 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). Feeding the world’s growing population is a major challenge that will need to be solved. Previously Caterpillar provided a 2020 outlook, anticipating $8.50 to $10.00 in EPS. As the world faces the challenge of growing populations and changing consumer expectations, emerging food and agriculture stocks are working to improve farming and livestock … 7 Agricultural Stocks and ETFs to Buy and Hold Demand for food is expected to increase as the world's population grows. Adjusted earnings-per-share fell 21% in the third quarter. It’s a safe bet we will be practicing agriculture far into the future. Fresh Del Monte is one of the world’s largest producers of fruit, and was founded in 1886. CF is a global leader in nitrogen with massive production and distribution capabilities. We have a favorable long-term view of the company’s growth prospects. The company expects positive nitrogen demand in multiple markets in 2021, including North America, India, and Brazil. Instead, these agriculture stocks are issued by companies that manufacture chemical fertilizers or create genetically modified seeds. Performance of the Stock Chickens are coming home to roost for an industry that has long been plagued by scandal. These products include ductile iron pipes, engines, tractors, combine harvesters, reaper binders, chain saws, trimmers, rice planters, and excavators. Caterpillar ended the third quarter with $9.3 billion of enterprise cash and more than $14 billion in available liquidity sources. 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. The number nine spot in the list of top performing stocks of the Agriculture sector is taken by FMC Corporation (FMC). These stocks include seafood producer Mowi ASA, food company Bunge Ltd., oil … It has more than 15 production and distribution facilities throughout the United States, giving the company the opportunity for continued growth in the years ahead. Based on our estimate of $7.10 in full-year EPS, Deere stock trades for a P/E ratio above 36. Combined with future earnings growth, we expect mid-to-high single-digit total shareholder returns over the next five years. 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. Archer-Daniels-Midland reported its third-quarter earnings results on October 29th, 2020. Lee Samaha | Its new facilities will process 220 million pounds of chicken and turkey each year. Deere, which manufactures farm equipment for the agriculture industry, will likely see sustained demand for many years as a result. Dec 28, 2020, Rhian Hunt | The company had a very strong third quarter, with adjusted FFO-per-share up 40% from the previous quarter. 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. Given the importance of pesticides to 21st-century agriculture and expectations for a recovery in the near term, investors might want to take a close look at the trio. These companies -- many with healthy profits, cash flows, and dividends -- offer excellent opportunities for investors. However, the company has withdrawn this guidance amid the ongoing crisis. Calavo pays an annual dividend, typically in October. Today, Bunge is a holding company. 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. Household penetration of avocados is still below other common fruits, which means Calavo has a long runway of future growth up ahead. List of top 50 best agricultural companies in the USA ! 3 Top Stocks in Digital Agriculture Companies across the agricultural value chain are investing in digital tools to help farmers. Archer Daniels Midland has a huge global network that includes ~482 crop procurement locations, and more than 340 food and feed processing locations. In the 2020 third quarter, net sales increased approximately 18.4% compared to the third quarter of 2019. Services will be also be a major long-term growth catalyst. Another positive catalyst is the company’s massive global platform and competitive advantages, it is perfectly situated to capitalize on this emerging theme. For the third quarter, sales declined 11% to $8.925 billion, as the company continues to struggle with the COVID-19 pandemic. Deere stands to benefit from major global trends—specifically, the growing population and increasing demand for food. Here’s how it works: Many farmers can now pay a monthly or annual subscription fee to access historical and predictive data specialized for their farms. Gladstone is a monthly dividend stock, meaning it pays 12 dividends per year to shareholders, instead of the more typical four payments. The stock has a 1.2% dividend yield. For example, in 1996 approximately 75% of the company’s sales were derived from bananas. In the most recent quarter, adjusted earnings-per-share fell 8%. Healthier foods like avocados are seeing strong demand as a result. Individual investors can gain exposure to the emerging opportunity in a few ways. Scotts Miracle-Gro earns a place on this list because it is a strong business with significant competitive advantages. The question is whether Fresh Del Monte is able to capitalize. This has helped the company remain profitable. 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. Investors cheered the meat giant's latest earnings report. Agricultural Commodities/Milling Stocks The agricultural commodities/milling sector includes companies involved in crop production, livestock management and animal feed. Nov 5, 2020, Copyright, Trademark and Patent Information, Plant-based proteins, processing, industrial biotech, Pesticides, biologicals, digital agriculture. That’s because the demand drivers of the industry make it extremely likely to be around far into the future. Agriculture stocks reap cash flow harvests in the process, and in turn pass that success on to … Market data powered by FactSet and Web Financial Group. Calavo Growers earns a place on this list because of its growth story. Nutrien is one of the world's largest fertilizer producers and the largest potash producer, generating 6 million metric tons annually. Caterpillar was founded in 1925. Acquisitions will help Gladstone capitalize on its growth opportunities. Agriculture relies on energy. However, NTR stock remains below its 52-week high of $55.25. Today agribusiness is big business, touching a large array of different market 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. 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