Agriculture is an important and critical industry that plays a crucial role in feeding the global population. The demand for agricultural products is expected to increase in the coming years due to a growing population and changing dietary habits. Furthermore, the COVID-19 pandemic has exposed the fault lines in the global food supply chain with each country seeking her own self-sustenance measures.
Many governments around the world are increasing their investments into agriculture-related businesses and technologies. The business of agriculture has become a matter of survival.
All these factors make investing in agriculture businesses a must-consider option for all investors and long term stock traders.
There are several types of agriculture-related businesses to consider investing in. One type is agricultural inputs, which include companies that produce seeds, fertilizers, and pesticides. These businesses can benefit from the increasing demand for food as they provide the necessary tools for farmers to increase their crop yields.
Growing crops require nutrients such as potassium and phosphorus. The prices of fertilizers have soared in the last couple of years, and further worsened by the Russian invasion of Ukraine. One of the largest producer of fertilizer is a company called Nutrien. They are the largest producer of potash and nitrogen fertilizer in the world. Nutrien is expected to see record fertilizer prices in 2023.
Investor can also study Bayer, one of the largest player in the pesticide business.
Another type of agriculture business is farm equipment manufacturers, which produce and sell tractors, combines, and other equipment used in farming. These companies also stand to benefit as farmers will need to purchase new equipments to meet this growing demand.
Another type of agriculture business is food processors and distributors. These companies take raw agricultural products and process them into food items such as canned goods, frozen foods, and packaged goods.
When it comes to investing in agriculture stocks in the USA, there are a number of options to consider. Some of the top agriculture stocks to buy include companies such as Deere & Company, Monsanto, and Archer Daniels Midland. These companies are leaders in their respective industries and have a proven track record of success.
Deere & Company is a leading manufacturer of farm equipment and has been in business for over 180 years. The company’s equipment is used by farmers around the world, and it has a strong reputation for producing high-quality products.
Monsanto is a leading producer of genetically modified seeds and other agricultural products. The company’s products are used by farmers around the world, and it has a strong reputation for producing high-quality products.
Archer Daniels Midland is a leading food processor and distributor. The company’s products are used by food manufacturers around the world, and it has a strong reputation for producing high-quality products.
Last but not least, vertical farming. In the last decade, advanced in technology has enabled Internet-of-Things (IoT) to be embedded into the agriculture industry. Gadgets that can be used to measure plant health, water quality and atmosphere are used as data-feeder into a smart system that controls the growth environment of vertically farmed crops. Vertical farming solves the problem of farm-estate by maximising produce through vertically-stacked crops. Investor can consider companies operating in this field such as Local Bounti.
There are few other types of agriculture-related businesses not covered in this article. Through due diligence, a stock trader should be able to uncover a good company to invest into this agri-theme play. Stock traders should consider a good stock trading bot to help time his/her entry into the agriculture-related stocks. Trade intelligently.