Around 75% of the world’s land is already degraded, and unless we reverse course, up to 90% could be degraded by 2050, according to UNESCO and the UNCCD. That’s billions of hectares losing fertility at breakneck pace: between 2015 and 2019, more than 100 million hectares per year were degraded through erosion, compaction, salinization, and nutrient depletion. Soil forms at millennia-timescales; what takes nature 500 to 1,000 years happens in mere decades thanks to plowing, monoculture, and deforestation.
This isn’t theoretical. About 3.2 billion people now depend on land that is already compromised or in decline. In drylands, regions especially vulnerable to heat and drought, degradation and desertification are intensifying, amplifying agricultural risk.
And then there’s climate chaos. Warming, erratic rainfall, and intensifying droughts make what’s left of fertile land increasingly precarious. In Africa, for example, Kenya had its worst drought in four decades in 2023; southern Africa had its worst in a century, slashing maize harvests by half in parts of Zambia and Zimbabwe.
Meanwhile, global population growth continues forcing demand. The FAO and other bodies estimate we’ll need 50–70% more food by 2050 to feed nearly 10 billion people, requiring far more output from ever-shrinking productive land.
All of this sets the stage for AgTech not just as a high-growth sector, but as an existential one. Conventional agriculture — heavy tillage, single-crop systems, chemical fertilizers, and mass irrigation — is literally undermining the Earth’s capacity to grow food. Yield declines of 10–50% in degraded zones are already documented, especially where soil organic matter has collapsed.
At the same time, the AgTech industry is navigating a difficult reality. According to McKinsey, venture funding has plunged by about 60% since late 2021, marking a full-blown capital drought, even as many AgTech startups struggle or fail, with billions at risk. A recent U.S. sector report confirms deal volume is down ~25% and funding down ~3.6% in Q1 2025, though areas like precision farming and automation remain active.
That might sound like bad news—but the flip side is opportunity. When the crisis is existential, delivery of proven, scalable tech suddenly becomes critically needed. Tools such as precision irrigation, carbon-sequestering soil microbes, gene-edited crops, autonomous machinery, and vertical farming platforms can restore fertility, raise yields, and help agriculture operate with far less water, fertilizer, and land waste.
So yes, investment has cooled—but the problem hasn’t. Civilizations can’t grow food from dead dirt. AgTech is the only lifeline left.
Also read 12 Most Advanced Countries in AgTech.
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Our Methodology
For our list, we focused on stocks from Blackrock’s Emergent Food and AgTech Multisector ETF, and picked stocks across the entire AgTech value chain. We ensured that these stocks were either pure play or had major share in the AgTech industry. Finally, we ranked them on the number of hedge funds that held stakes in them as of Q1 2025.
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. AGCO Corporation (NYSE:AGCO)
Number of Hedge Fund Holders: 27
AGCO Corporation (AGCO) is one of the best agriculture stocks to buy now. On July 1, 2025, AGCO reached a long-awaited settlement with Tractors and Farm Equipment Limited (TAFE), ending a protracted commercial and legal dispute that had stretched for over a year. As part of the agreement, TAFE repurchased AGCO’s 20.7% stake in the company for $260 million. In return, TAFE secured exclusive rights to the Massey Ferguson brand in India, Nepal, and Bhutan, untangling a complex web of joint ownership and brand licensing issues that had fueled tension between the two companies.
The deal also wiped the slate clean on all existing contracts and lawsuits between the parties. Both companies agreed to unwind their previous arrangements and step away from each other’s boards, effectively ending their governance entanglement. TAFE will retain a passive 16.3% stake in AGCO but is restricted from increasing that position and is required to vote in alignment with AGCO’s board on most matters. The agreement includes non-disparagement terms, sealing the truce.
This is a strategic reset for AGCO, which gives it clean separation from a tangled partnership in one of its largest potential markets.
AGCO Corp (NYSE:AGCO) is a U.S.-based manufacturer of agricultural equipment and precision farming technology, with global brands like Massey Ferguson, Fendt, Valtra, and PTx.
9. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 32
Nutrien Ltd. (NYSE:NTR) is one of the best agriculture technology stocks to buy now. On July 23, 2025, UBS raised its price target on the stock from $56 to $64 while maintaining a Neutral rating, signaling cautious optimism. While the valuation bump hints at improving conditions, perhaps tighter execution or slightly firmer fertilizer pricing, the firm held back from upgrading the rating. UBS analysts remain concerned about soft demand in global fertilizer markets, particularly for nitrogen and potash, suggesting that broader macro conditions still weigh on Nutrien’s near-term upside. The firm had previously downgraded Nutrien back in October 2024 due to low projected free cash flow and flat earnings outlook, a stance that hasn’t shifted dramatically despite the raised target.
Nutrien Ltd. (NYSE:NTR) is a Canadian agricultural giant and the world’s largest provider of crop inputs and services, including potash, nitrogen, and phosphate products, alongside a massive retail distribution network that serves growers across the Americas and beyond.
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