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Overview: Farmland stocks have been on the rise in recent years
As the world’s population continues to grow, food production must increase. The United Nations estimates that by 2050 there will be 9 billion people on Earth and we need to produce enough food for them all. This is a daunting task, but it can be done if we have the right tools at our disposal. One of those tools is farmland.
The land is essential to agriculture because it grows crops. Land ownership allows farmers to take control of their crop output. Farmers who own their own land can choose when and where they want to plant their crops.
Farmers who own their land also benefit from lower overhead costs: renting land requires paying an annual fee to landowners which helps cover the cost of maintaining the land.
The value of farmland tends to appreciate faster than other assets. As a result, farmland is a good investment option for long-term capital growth.
Investing in farmland doesn’t mean you have to live off the land. You can lease out your farmland and still reap the financial rewards.
Reasons to invest in farmland stocks
Farmland is often referred to as the “canary in the coal mine,” meaning it provides early warning signals when things go wrong in our food system. But how do you decide whether to buy land and what types of investments make sense?
Agriculture is one of the pillars that supports the entire U.S. economy. In fact, according to the USDA, $15 billion worth of agricultural products are sold every day. And while there are many different ways to participate in the industry, investing in farmland is a great option. In this article, we explore the best farmland stocks to buy.
Invest In Farmland Today!
Platform | Minimum | Link | Accredited Only | Investments |
| $8,000+ | Yes | US Farmland, Timberland, Vineyards | |
| $15,000+ | Yes | US Farmland | |
| $30,000+ | No | South American Farmland |
The 7 Best Agriculture Companies to Invest in Now
1. Gladstone Land Partners (LAND)
Gladstone Land Partners is an agriculture holding company based in California. This company distributes its annual earnings through quarterly dividends. Its shares trade over the counter under the symbol “GLDP.”
The company produces corn, soybeans, wheat, oats, barley, alfalfa, sugarbeet, cottonseed oil, and sunflower seed oil. It operates 10 farms, including five-grain elevators, four feed mills, one processing plant, and three ethanol plants. In addition, it owns a farm equipment dealership.
2. Farmland Partners (FPI)
Farmland Partners Inc., based out of Indianapolis, Indiana, is one of the largest real estate investment trusts (REITs) in the United States. Its primary focus is farmland, including crop production, livestock operations, and agricultural processing facilities.
The company operates across six states – Illinois, Iowa, Kansas, Minnesota, Missouri, and Nebraska – and owns approximately 8,400 farms totaling over 7 million acres.
3. Tyson Foods (TSN)
Tyson Foods Inc. is one of the largest producers of chicken, beef, pork, turkey and processed foods in North America. The company operates over 2,100 facilities across 45 states and employs approximately 70,000 people.
In addition to producing animal proteins, Tyson Foods sells frozen poultry under the Bell & Evans brand name; prepared meats under the Jimmy Dean and Hillshire brands; and branded packaged meats, including Ball Park hot dogs, Oscar Mayer wieners, Hebrew National bologna, Armour canned hams, and deli meats, and Pilgrim’s Pride ground chuck.
The company reported $11 billion in sales in 2017. Its shares trade on the New York Stock Exchange under the symbol “TY.”
4. FMC Corporation (FMC)
FMC Corp. is a major agricultural corporation headquartered in Kansas City, Missouri. They are primarily focused on producing pesticides, herbicides, and fertilizers. They provide pest control solutions to farmers while focusing on increasing yields and profitability.
They have set aside investments in the discovery of new active ingredients, in the development of innovative formulations, and in the development of biological products in addition to advancing precision agriculture technologies that support sustainable agriculture around the world.
5. Nutrien (NTR)
Nutrien is an agriculture company headquartered in Toronto, Ontario, Canada. Founded in 1919, it provides fertilizer and seed distribution services. Its primary focus is on crops and agribusinesses.
It operates through the following parts Retail, Potash, Nitrogen, and Phosphate. The Retail member distributes crop nutrients, crop protection products, seeds, and wares. The Potash, Nitrogen, and Phosphate parts produce discerned chemical nutrients contained in each product.
6. The Scotts Miracle-Gro Company (SMG)
The Scotts Miracle-Gro Company is one of the largest garden supply companies in North America. Founded in 1873, it offers products like fertilizers, soil amendments, plant care products, lawnmowers, and pest control. Its flagship product is called Miracle-Gro®.
In addition to selling directly to consumers, Scotts sells to retailers such as Lowe’s Home Improvement, Walgreens, Ace Hardware, and others.
In 2017, SMG had $10 billion in annual revenue and employed about 45,000 people worldwide. It operates in 49 states, Canada, Mexico, Puerto Rico, Guam, and the United Kingdom.
7. Bunge Limited (BG)
Bunge Limited is a leading global provider of agricultural commodities and related logistics services. In addition to operating one of the world’s largest grain trading networks, Bunge provides customers around the globe with oilseeds, vegetable oils, animal feed, fertilizers, plastics, and chemicals. Bunge operates through three segments: Commodities, Food Processing and Industrial Products.
The Commodity segment consists primarily of Bunge’s North American grain trading network, which includes Bunge’s Chicago Board of Trade operations and Bunge’s Latin America grain trading network. Bunge also owns Bunge Brazil S.A., a Brazilian agribusiness company focused on corn production, processing, marketing, and distribution.
BG’s Food Processing segment includes Bunge’s certified milling operations and Bunge‘s branded food ingredient businesses, including Oléosolv, a producer of natural flavorings and aromas. BG‘s Industrial Products segment includes Bunge‘s Plastics and Chemicals unit, which produces polyethylene terephthalate (PET), high-density polyethylene (HDPE), and low-density polyethylene (LDPE).
Bunge’s sales growth was driven by strong demand for its commodity products, particularly wheat and soybeans. Bunge’s price margins improved due to lower input costs and favorable exchange rates. Bunge’s highest stock price increase occurred during the fourth quarter of 2018 when shares rose nearly 30%.
Conclusion: Best Farmland Stocks
The best farmland stocks are those that offer investors exposure to the agriculture industry while providing protection against inflation. These companies are growing crops like corn, soybeans, wheat, cotton, and rice.
They also produce food products such as milk, eggs, meat, and poultry. Investors looking for high yields and low risk should consider buying shares of companies that grow commodities like grains, oilseeds, livestock, and dairy products.
Investors seeking income should look into companies that provide crop insurance and sell farm equipment. Companies that specialize in producing biofuels and ethanol could also make good investments.
Over the last few years, it is been easier to invest in farmland. Now people didn’t have to buy land themselves or even put on a pair of boots. There are online platforms where you can invest in farmland as well as some Tags:best farmland stocksfarm land stock investingfarmland investment
