In this article, we will look at the 10 Best Agriculture Stocks to Buy According to Hedge Funds.
Tariff Crisis in the US Agricultural Sector
On April 28, CNBC reported that while other US sectors are nearing what President Trump’s Treasury secretary Scott Bessent calls “an unsustainable tariff war”, the American farming sector has started to bear the effects of the economic crisis, with the damage already done. American agricultural exporters believe that the global backlash to tariffs imposed by Trump is punishing them, especially through a decrease in Chinese purchasing of US products. This trend is resulting in canceled export orders and layoffs.
Data from the US Department of Agriculture shows that China canceled its biggest pork orders since 2020, stopping the shipment of 12,000 tons of pork. CNBC reported that Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC), a leading export trade group for farmers, opined that calling the number of canceled orders of US agricultural products could not be called “approaching a crisis”, as “it is a full-blown crisis already.”
AgTC also reported that its members are experiencing “massive” financial losses because of the trade war, based on the reports sent by member companies. A wood pulp and paperboard reported to AgTC the hold or immediate cancellation of 6,400 metric tons in a warehouse. It said that 9,000 metric tons of the product are already on their way to China through water, with the estimated arrival time being May 13. Chinese buyers may refuse to accept these shipments and abandon them at the port, which is why the threat of costly diversion to Chinese or other bonded warehouses looms over the journey.
READ ALSO: Recession Resistant Investing: 10 Best Grocery Stocks To Buy Now and 11 Most Promising Future Stocks According to Hedge Funds.
Markets Unable to Replace China’s Demand
China-to-US vessel traffic has also seen a steep decline. CNBC reported that according to the Vizion Global Ocean Bookings Tracker, the traffic is down 22.15% week-over-week and 44% year-over-year through April 14. Ben Tracy, Vizion’s vice president of strategic business development, said the following about the situation:
“What we’ve seen in the last two weeks is a continued correction in booking demand for US imports, especially US imports from China. We are now seeing this translate to a drop in departures as well.”
Agricultural exporters opined that no other global markets hold the potential to swiftly replace China’s demand and absorb the volume. These trends are already affecting operations and prices. CNBC reported that a lumber exporter told AgTC that some products have already fallen 20% in market value, which will likely impact future investments and inventory planning.
“The U.S. market was stable and improving, but now awash with inventory of former China products,” it said. “We have diverted employees and production to other (less profitable) production and dramatically slowed down purchasing from independent vendors (loggers, truckers, sawmills).”
With these trends in mind, let’s examine the 10 best agriculture stocks to buy according to hedge funds.
Aerial view of a vibrant wheat field, a representation of the fertilizers and crop nutrients this company provides.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 30 agriculture stocks and chose the top 10 most popular stocks among hedge funds. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is ordered in ascending order of the number of hedge funds as of fiscal Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Agriculture Stocks to Buy According to Hedge Funds
10. Calavo Growers, Inc. (NASDAQ:CVGW)
Number of Hedge Fund Holders: 22
Calavo Growers, Inc. (NASDAQ:CVGW) markets and distributes fresh and prepared avocados globally. The company operates in two segments: Prepared and Grown. The Grown segment comprises fresh avocados, papayas, and tomatoes. The Prepared segment manages guacamole products and avocado pulp.
Calavo Growers, Inc. (NASDAQ:CVGW) has gained positive investor sentiment through its strong fiscal Q1 2025 results. It reported a gross profit of $15.7 million in fiscal Q1 2025, 46.2% growth from the prior-year quarter. Its Fresh segment’s gross profit rose 88.8% compared to the same quarter last year, reaching $12.1 million.
Analysts are bullish on the stock, ranking it tenth on our list of the best agriculture stocks to invest in. On April 16, Lake Street analyst Ben Klieve maintained a Buy rating on Calavo Growers, Inc. (NASDAQ:CVGW), setting a price target of $35.00.
9. Vital Farms, Inc. (NASDAQ:VITL)
Number of Hedge Fund Holders: 30
Vital Farms, Inc. (NASDAQ:VITL) packages, markets, and distributes pasture-raised butter, shell eggs, and other products. It sells its products primarily to retail food service channels under the trade names Vital Farms, Alfresco Farms, Lucky Ladies, and RedHill Farms.
On May 5, Andrew Strelzik, analyst from BMO Capital, initiated a new Buy rating on Vital Farms, Inc. (NASDAQ:VITL) due to the company’s strong growth potential and market position. The analyst reasoned that the company holds a leadership position in the pasture-raised egg segment with around 75% market share. The company also reported notable sales growth compared to the overall specialty egg segment. Its dominant market position and premium pricing strategy appeal to higher-income consumers, positioning it for continued revenue expansion.
The analyst expects Vital Farms, Inc. (NASDAQ:VITL) to benefit from an anticipated volume acceleration in H2 2025, exceeding its guidance for the year. Strategic expansion plans, such as increased production capacity and the addition of new family farms, also justify the buy rating for the stock.
8. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 32
Based in Canada, Nutrien Ltd. (NYSE:NTR) provides crop inputs and services. It operates a distribution, production, and agriculture retail facility network to support growers and ranks eighth on our list of the best agriculture stocks to buy according to hedge funds.
The company’s operations are divided into the following segments: Nutrien Ag Solutions (Retail), Potash, Nitrogen, and Phosphate. Nutrien Ltd. (NYSE:NTR) manages retail operations in seven countries across three continents. Its agriculture retail network services more than 500,000 grower accounts worldwide.
In a report released on April 15, Aron Ceccarelli from Berenberg Bank maintained a Buy rating on Nutrien Ltd. (NYSE:NTR) and set a price target of $59.00.
Analysts are bullish on the stock because of its strong operations. It reported an adjusted EBITDA of $5.4 billion for 2024 and underwent a 16% growth in retail adjusted EBITDA. This improvement was attributed to stronger-than-expected crop protection margins in North America.
Management expects Nutrien Ltd.’s (NYSE:NTR) 2025 outlook to be supported by expectations for firming potash fundamentals and strong crop input demand. The company boasts a world-class asset base and is focused on strategic priorities to bolster its core business and deliver structural improvements on free cash flow and earnings.
7. Cal-Maine Foods, Inc. (NASDAQ:CALM)
Number of Hedge Fund Holders: 34
Cal-Maine Foods, Inc. (NASDAQ:CALM) produces, packages, grades, markets, and distributes shell eggs. To support its operations, it operates processing plants, farms, feed mills, warehouses, hatcheries, and other properties. The company markets its products to regional grocery store chains, food service distributors, club stores, and egg product manufacturers.
On May 5, BMO Capital initiated coverage of Cal-Maine Foods, Inc. (NASDAQ:CALM) with a Market Perform rating. The analyst’s $100 price target implied an upside of 8% from its share price. The firm expects a normalization in earnings after the company’s record fiscal Q3 due to lower commodity egg prices. The analyst told investors in a research note that while this situation creates a “tough setup” for investment in the shares at these levels, BMO forecasts “higher-for-longer” earnings through fiscal 2026.
The company reported positive fiscal Q3 2025 results, with quarterly net sales reaching $1.4 billion and net income of $508.5 million. Strong consumer demand during the quarter resulted in a record number of total dozens sold. Cal-Maine Foods, Inc. (NASDAQ:CALM) also underwent a 24% increase in total chicks hatched during fiscal Q3 2025 compared to the same quarter last year.
It expects ongoing expansion projects worth around $60 million to be completed in 2025, adding approximately 1.1 million cage-free layer hens and 250,000 pullets to the company’s operations.
6. Bunge Global SA (NYSE:BG)
Number of Hedge Fund Holders: 38
Bunge Global SA (NYSE:BG) is a global agribusiness and food company. Its products include canned and frozen vegetables, spices, vegetable oils, wine vinegar, fruit spreads, canned meats and beans, and other items. It sells its products through the brands Mrs. Dash, Ortega, Back to Nature, Bear Creek, Green Giant, and Cream of Wheat. The company ranks sixth on our list of the top agriculture stocks to invest in now.
The company recently announced agreements to sell its North American dry corn and corn masa milling businesses to Grain Craft, an independent flour miller in the US, after selling its European margarine business. These transactions allow Bunge Global SA (NYSE:BG) to align its assets with its global integrated value chains.
Bunge Global SA (NYSE:BG) also benefited from farmer activity and tariff-related timing shifts in demand in fiscal Q1 2025. Despite a challenging market environment, management is confident about its potential to execute well and deliver shareholder value, supported by its disciplined approach, resilient global footprint, and focus on a connection between consumers and farmers.
5. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 38
Archer-Daniels-Midland Company (NYSE:ADM) is a human and animal nutrition company that serves as an agricultural processor and supply chain manager. It operates through the Carbohydrate Solutions, Nutrition, and Ag Services and Oilseeds segments.
The company plans to strengthen its financial position in economic fluctuations and improve margins through a strategic plan targeting around $200 to $300 million in cost savings over the coming years. Archer-Daniels-Midland Company (NYSE:ADM) plans to do so primarily through workforce reductions and operational efficiencies, giving it the fifth spot on our list of the best agriculture stocks to buy now.
The company’s fiscal Q1 2025 results aligned with its outlook and market expectations, delivering $20.18 billion in revenue. Despite an uncertain environment, Archer-Daniels-Midland Company (NYSE:ADM) advanced various aspects of its self-help agenda, including advancing its pipeline of portfolio simplification opportunities, driving cost savings through targeted operational and organizational realignments, and continuing its disciplined approach to capital allocation.
4. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 41
The Mosaic Company (NYSE:MOS) is the fourth-best agriculture stock to invest in now. It produces and markets concentrated phosphate and potash crop nutrients. The company’s operations are divided into the Phosphates, Potash, and Mosaic Fertilizantes segments.
The Phosphates segment produces concentrated phosphate crop nutrients and phosphate-based animal feed ingredients. The Mosaic Fertilizantes segment manages mines, chemical plants, port terminals, crop nutrient blending and bagging facilities, and warehouses.
On April 22, Barclays analyst Benjamin Theurer maintained a Buy rating on The Mosaic Company (NYSE:MOS) and set a price target of $33.00. Due to improved agriculture markets, the company expects constructive agriculture and fertilizer fundamentals in 2025 and is also making operational progress.
The Mosaic Company’s (NYSE:MOS) fiscal Q1 2025 market performance showed strong fertilizer market fundamentals, with net income of $238 million and adjusted EBITDA reaching $544 million. Substantial operating efficiency gains in fiscal Q1 2025 are expected to drive sequential segment adjusted EBITDA growth in fiscal Q2 2025.
The raised potash production volume outlook for 2025 reflects strong international demand and robust prices, so management expects around 15% growth in Mosaic Fertilizantes sales volumes in 2025.
3. Corteva, Inc. (NYSE:CTVA)
Number of Hedge Fund Holders: 45
Corteva, Inc. (NYSE:CTVA) provides seed and crop protection solutions, focusing on the agriculture industry and food supply. Its operations are divided into the Seed and Crop Protection segments. The Seed segment develops and supplies advanced germplasm and traits, producing yield for farms. The Crop Protection segment manages the global agricultural input industry, offering products for insects, weeds, pests, and disease protection.
In a report released on April 7, Laurence Alexander from Jefferies maintained a Buy rating on Corteva, Inc. (NYSE:CTVA) and set a price target of $72.00. The analyst based their favorable outlook on the stock’s attractive risk/reward profile, which reflects potential upside supported by improvements in R&D efficiency and cyclical recovery.
Corteva, Inc. (NYSE:CTVA) is also poised to benefit from an expansion in the total addressable market, driven by structural margin enhancements and regulatory changes. The analyst expects the company to continue its share buyback program and maintain a strong balance sheet, focusing on conservative cash management in the future.
2. FMC Corporation (NYSE:FMC)
Number of Hedge Fund Holders: 48
FMC Corporation (NYSE:FMC) is an agricultural sciences company that provides solutions for plant health, crop protection, pest control, agriculture, and turf management. Its brand portfolio includes Rynaxypyr, Cyazypyr, Authority, Boral, Centium, Command, Gamit, Talstar, Hero, Quartzo, and Presence. The company takes the second spot on our list of the top agriculture stocks to invest in.
In a report released on May 2, Aleksey Yefremov from KeyBanc maintained a Buy rating on FMC Corporation (NYSE:FMC) and set a price target of $53.00. The company’s latest earnings report showed a 14% revenue decline compared to the same quarter last year. Despite that, it reaffirmed its full-year financial outlook, which reflects confidence in its strategic initiatives and justifies the buy rating.
FMC Corporation (NYSE:FMC) plans to maintain its adjusted EBITDA and revenue outlook for the full year and anticipates growth in H2 2025, primarily supported by strategic market expansions, particularly in Brazil. It also plans to manage currency and pricing challenges through increased sales volumes and cost savings.
1. Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 57
Deere & Company (NYSE:DE) manufactures and distributes equipment used in agriculture, forestry, turf care, and construction. Its operations are divided into Agriculture and Turf, Construction and Forestry, and Financial Services.
In a report released on April 16, Morgan Stanley analyst Angel Castillo maintained a Buy rating on Deere & Company (NYSE:DE). The firm raised its price target on the stock to $500 from $450, keeping an Overweight rating on the shares. Morgan Stanley told investors in a research note that the rating changes reflect the “dynamic macro backdrop,” based on an updated risk/reward analysis, demand conditions, and tariff risks.
In another report released on April 14, Adam Seiden from Barclays maintained a Buy rating on Deere & Company (NYSE:DE) and set a price target of $475.00.
Argus also expressed positive sentiments for the company, raising the firm’s price target on the stock to $510 from $440 with a Buy rating. The analyst expects solid earnings power for Deere & Company (NYSE:DE) later in 2025, supported by events such as resuming shipments to distributors, restarting rate cuts by the Fed, and increasing profitability for farmers.
Overall, DE ranks first among the best agriculture stocks to buy according to hedge funds. While we acknowledge the potential of agriculture stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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