7 Agricultural Stocks to Buy to Keep Your Portfolio Well Fed in 2022

The strong volume growth was in part due to supply uncertainty in the industry, which resulted in customers placing orders in advance to secure material. The stocks are ranked according to expected returns over the next five years, in order of lowest An in-depth view on forex leverage to highest. The agriculture stocks list was derived from two major exchange-traded funds. These are the AgTech & Food Innovation ETF and the iShares Global Agriculture Index ETF . John Deere and Caterpillar continue to develop autonomous machines.

  • We couldn’t find a catalyst for why agriculture stocks are down.
  • A look at the long-term price performance of JPM vs. other big U.S. banks also proves it is a cut above the rest.
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  • Dominance of the farm equipment market and how it got that way, but that’s a story for another day.

What’s more, its scale allows it to dominate the agricultural industry. Some of the best publicly traded agricultural companies are the ones that leverage advanced technology and valuable data. Farmland can serve as a cornerstone of a balanced investment portfolio. Commodity prices, including the cost of food, tend to rise with inflation. This strong correlation allows agricultural investing to protect against inflation, especially compared to high-volatility assets. As crop prices rise, the value of the land itself tends to increase at the same time, building an even stronger shield against market conditions.

Some of these crops, such as pecans, have a longer maturation period but can produce up to a century of solid returns. Others, like almonds, peak faster but have a shorter period of peak productivity. As farmland prices continue to rise, this subsector will remain a solid investment for the foreseeable future. This type of ownership is extremely attractive to investors because it means they receive direct land ownership in a specific farm, not shares of a company or fund. Additionally, this ownership structure allows for increased diversification through low investment minimums and a multitude of agricultural investments to choose from. You don’t have to be an agriculture expert to produce a strong income from investing in farmland.

Critical Facts You Need to Know About Preferred Stocks

The stock receives coverage from at least 24 analysts who have a consensus price target of $139.23, a 42% increase from its level as of September 28, 2022. And as interest in sustainable agriculture is growing, so is this sub-sector which creates another path for investors, particularly those who are focused on ESG concerns. Financhill just revealed its top stock for investors right now… Is a fertilizer company that manufactures nitrogen products, such as ammonia, urea ammonium nitrate, and ammonium nitrate. For conservative-minded investors, a plus for Scotts Miracle-Gro is that it also offers a reasonably generous dividend north of 2% at the time of our research.

Crops are affected by climate so whether the temperature becomes excessively hot or cold, it becomes increasingly more difficult to farm arable land. It’s difficult to see the woods from the trees when researching agriculture companies because a wide variety of types exist. Sign Up NowGet this delivered to your inbox, and more info about our products and services. Investing for the future is a great idea, and there are thousands of ways to invest. The Consumer Technology Association ® today announced its CES® 2023 C Space keynote conversation, featuring Delta Air Lines CEO Ed Bastian and MediaLink founder and CEO Michael E. Kassan.

Gardeners know they can trust Scotts for gardening and landscape products, as well as plant foods, garden soil, and potting mixes. Scotts has embraced the trend towards organic products with a lineup of offerings too. Start by focusing on companies that have earned reputations as producers of great products and have built strong brand value.

Inflation Pushes Agriculture Stocks Higher

The average P/E ratio of the farm & heavy construction machinery industry is 17.04x. The Dividend Kings List is even more Bottom up investing for beginners exclusive than the Dividend Aristocrats. It is comprised of 45 stocks with 50+ years of consecutive dividend increases.

More recently, they’ve come down for the same reason that commodity prices are down. Thanks to a strong outlook, industry publication Evaluate Pharma expects ABBV to be the largest of all Big Pharma stocks as soon as 2028 thanks to its continued growth. That kind of scale coupled with the consistent revenue delivered by its maintenance drugs will help provide a strong backbone for this Big Pharma mainstay for years to come. The best corn stocks depend on your portfolio and investment goals — while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time. The Census of Agriculture is a complete count of U.S. farms and ranches and the people who operate them. The Census of Agriculture, taken only once every five years, looks at land use and ownership, operator characteristics, production practices, income and expenditures.

best agricultural stocks to buy 2022

Looking at the A+ Momentum grade below, this stock is a top stock in its respective sector, gradually outperforming its peers on a quarterly price-performance basis. We have three key fertilizer stocks for an inflationary environment that are Strong Buys based on our quant ratings, their fundamentals, attractive valuation levels, and solid earnings growth. Nutrien Ltd. is the largest producer of potash and the third largest producer of nitrogen in the world. Both are essential fertilizers for the world’s major crops and have been in high demand among U.S. growers this year. Fertilizer companies aren’t always the hottest names on Wall Street, but their products are in high demand and are vital for ensuring an abundant food supply.

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Prices for key crops such as corn, soybeans and wheat are up 25% to 35% compared to the ten-year average, providing strong incentive for growers to increase production. Management expects the company to make $15.80-$17.80 per share for the year. Another benefit to Gladstone’s structure is its requirement to pay dividends. And a few of the other agriculture stocks on this list pay dividends. This is a great agriculture and farmland stock that gives investors a source of passive income through dividends.

With A’s over the last four quarters and six-month price performance relative to its sector peers that’s unheard of, as evidenced below, it’s no wonder this stock is a strong buy. Consequently, agriculture is garnering lots of attention from investors these days. And with the U.S. dollar still below historical norms despite a recent uptick, U.S. farm commodity prices are likely to continue rising for the foreseeable future. With crop supplies dwindling and food demand rising, it’s time to invest in the farming industry. And growing revenue and earnings is the catalyst for growth-oriented investors. The company has beaten earnings expectations for the past three quarters and has beaten revenue for seven consecutive quarters.

In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on the top stocks within the top 50% of Zacks Ranked Industries, you can dramatically improve your stock Forex Brokers And The Purpose Of Brokerage picking success. Annual crops, also called row crops, have to be planted and harvested at least every year. This broad category includes soybeans, corn, wheat, lettuce, rice, squash, peppers, alfalfa, and many other crops.

best agricultural stocks to buy 2022

For example, there’s design overlap with construction machinery. On page 7 of its presentation, Farmer Mac points out that it has just 6% of the farm sector real estate debt of $302 billion. The mortgage market is a big one, and it intends to keep gobbling up more of it in the years to come. For example, more than 90% of its revenue is recurring, a figure tech companies would die for. On a cumulative basis, just 0.11% of its Agricultural Finance Mortgage Loans have soured. Between 2000 and 2021, its outstanding business volume achieved a compound annual growth rate of 10%.

Top Performing Stock Lists for 2022

And, given the huge amounts of money Americans as a whole have saved in the last couple of years and the fact that the employment market remains very strong, they can afford to pay higher meat prices. As a result, I expect Tyson’s profits and growth to continue to be very strong, no matter what happens to the inflation rate going forward. Of these, FMC, Scotts Miracle-Gro, and The Andersons stand above the rest from a quality perspective thanks to their strong business models, attractive dividend yields, and long-term dividend growth potential. We believe the 7 agriculture stocks examined in this article are the best within the industry.

ETFs and funds that prioritize investments based on environmental, social and governance responsibility. Build conviction from in-depth coverage of the best dividend stocks. Customized to investor preferences for risk tolerance and income vs returns mix. Investors who are looking to gain broader exposure to agriculture commodities should consider adding an agriculture exchange-traded fund to their portfolio. Studies have shown that roughly half of a stock’s price movement can be attributed to a stock’s industry group.

He particularly enjoys creating model portfolios that stand the test of time. To counter the slide, the company announced Project Springboard when it released its third-quarter results in early August. It is intended to return Scotts Miracle-Gro to the level of profitability that shareholders have become accustomed to. Recurring revenue multiplied by rock-solid growth is a recipe for success.

No company exemplifies these competitive advantages more than Scotts Miracle-Gro. Deere & Company makes a lot of the complicated equipment involving all aspects of crop production. They also sell equipment for homeowners such as lawn mowers and snow blowers. They sell equipment through two segments which are Agriculture & Turf as well as Construction & Forestry. FMC Corporation supplies those much needed pest control products and provides other solutions to farmers.

Definitive List Of Cheapest Agricultural Commodities ETFs

All data series that are present in the 2017 dataset are available within the CDQT. All census of agriculture data can still be accessed using NASS’ most comprehensive searchable database, Quick Stats. The Quick Stats Database is the most comprehensive tool for accessing agricultural data published by NASS. It allows you to customize your query by commodity, location, or time period.

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