10 Best Farmland Stocks to Buy Now

Published August 24, 2022 at 2:34 pm EDT Updated August 19, 2026 at 8:12 am EDT

In this article, we discuss the 10 best farmland stocks to buy now.

According to a report by the Organization for Economic Co-operation and Development, the demand for agricultural products is expected to increase by 15% globally over the next ten years. With operations spanning the gamut from various subsistence farms to enormous multinational holdings, global agriculture has developed into a highly varied industry. Today’s farmers not only produce food but also play a significant role in protecting the environment.

In nominal terms, farm sector equity in the U.S. is predicted to rise by 1% to $2.85 trillion in 2022, a decrease of 2.5% year-over-year (YoY) after accounting for inflation. Following improvements in the value of farm real estate, it is predicted that farm sector assets will expand 1.3% to $3.31 trillion in 2022.

Like most sectors, farmland stocks also took a beating during the COVID-19 pandemic. The conflict between Russia and Ukraine that began in February 2022 provided negative impetus to commodity prices across the globe. In 2019, Russia and Ukraine exported more than one-quarter of the world’s wheat and are responsible for one-third of global wheat production. Russia is also the biggest exporter of fertilizer globally. However, since the start of the conflict, exports have been disrupted. The shortage in fertilizer supply has caused prices to rise globally, resulting in higher grain prices for consumers and farmers due to increased input costs.

The global developments have impacted the financial strength of the farm sector. In comparison to 2020, net cash farm income is estimated to have climbed by 14.5% or $17 billion in 2021, and is anticipated to rise by $1.9 billion to $136 billion in 2022. Cash receipts from farming and farm-related income are included in net cash farm income. Furthermore, following higher payments for soybeans, corn, and wheat, total crop receipts are anticipated to rise by $12 billion in 2022 from their value in 2021. As investors turn bullish on the farm and agricultural sector, companies like The Mosaic Company (NYSE:MOS), Nutrien Ltd. (NYSE:NTR), and Deere & Company (NYSE:DE) are gaining attention.

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Our Methodology

We have looked at the various aspects of the farmland sector and the supply chain associated with it to produce our list of the 10 best farmland stocks to buy now. We have shortlisted companies that provide a stable business outlook with healthy cash flows and strong shareholder returns in the form of dividends and share buybacks. The latest analyst ratings have also been taken into account. These stocks have been ranked as per the level of hedge fund ownership as of Q2 2022 among the select group of high performing hedge funds tracked by Insider Monkey’s database.

10 Best Farmland Stocks to Buy Now

10. The Scotts Miracle-Gro Company (NYSE:SMG)

Number of Hedge Fund Holders: 25

The Scotts Miracle-Gro Company (NYSE:SMG) is a Marysville, Ohio-based manufacturer and seller of branded lawn and garden products like fertilizers, grass seeds, insecticides, and rodent and weed control solutions.

The Scotts Miracle-Gro Company shares offer an annual forward dividend yield of 3.44% as of August 22 based on the stock’s quarterly dividend of $0.66 per share.

Since the start of the year, The Scotts Miracle-Gro Company stock has lost more than 52% of its value, and this provides an attractive entry point for potential investors, as the company has undertaken restructuring initiatives under the banner of Project Springboard. It is a cross-functional initiative that The Scotts Miracle-Gro Company has undertaken to expand its margins, improve its cash flow situation, and create value for shareholders.

Additionally, the business has a Hawthorne division that is the top producer, marketer, and supplier of fertilizers and associated gear for hydroponic and indoor horticulture. The U.S. consumer market accounts for 65% of The Scotts Miracle-Gro Company’s total annual sales, while its Hawthorne segment accounts for 29% of sales.

9. FMC Corporation (NYSE:FMC)

Number of Hedge Fund Holders: 29

FMC Corporation (NYSE:FMC) is a Pennsylvania-based insecticide company. Analysts consider the crop protection company a resilient player in the current recessionary environment. Christopher Parkinson at Mizuho gave FMC Corporation a ‘Buy’ rating with a target price of $149 in a research note issued on July 29. The target price provides potential upside of 33.7% from the closing stock price as of August 23.

During Q2 2022, FMC Corporation reported that numerous product categories experienced double-digit gains. The company’s insecticide segment observed the highest YoY growth of more than 20%. In comparison to the same period last year, sales of items introduced in the previous five years increased by over 35%. FMC Corporation has a strong future outlook. The company has already received 70% of the total orders required in Brazil to achieve its second-half revenue guidance. Due to favorable commodity prices and above-average client demand, there has been an increase in orders.

Glenview Capital, the hedge fund owned by Larry Robbins and Mark Horowitz, increased its stake in FMC Corporation from 356,521 shares to 758,499 shares, according to a filing made to the U.S. Securities and Exchange Commission (SEC) on August 11. Following the addition to the fund’s portfolio, the value of its holding stands at $81.2 million.

Miller Value Partners shared its outlook on FMC Corporation in its Q2 2022 investor letter. Here’s what the firm said:

“We also believe that a lot of Energy equities remain mispriced. The sector generated negative returns in four of the last six years (2015, 2017, 2018, and 2020). Even with a strong 2021 and start to 2022, the Energy sector 10-year returns at the end of the 2^nd quarter are only 4.3% versus 18.7% for Technology and 13% for the overall S&P 500. Our two energy holdings – Nabors Industries (NYSE:NBR) and TechnipFMC (NYSE:FMC) – are oil service companies that recently experienced multi-year trough conditions. Given the delayed industry Capital Expenditure (“capex”) recovery, both companies have only recently seen higher utilization rates, improved pricing, higher margins, and growing backlogs. It is also important to note that their revenue isn’t directly tied to a commodity price but to industry capital spending trends. Both management teams see a multi-year positive industry capex cycle with oil prices greater than $70/share. Nabors and TechnipFMC share prices are still 75% below their 5-year highs, at low single-digit cash flow multiples, and normalized free cash flow yields in excess of 30%. Both companies have significant price-to-value gaps that offer the potential to generate very positive long-term returns.”

8. Tyson Foods, Inc. (NYSE:TSN)

Number of Hedge Fund Holders: 37

Tyson Foods, Inc. (NYSE:TSN) is a Springdale, Arkansas-based processor and marketer of beef, chicken, and pork through a diverse portfolio of brands.

Last week, Tyson Foods, Inc. announced additional growth investments in the form of a $200 million expansion project at a beef factory in Texas. The funds will be used to upgrade the company’s Amarillo facility and streamline the production process using advanced technology. The company is aiming to complete the expansion by 2024.

Tyson Foods, Inc. stock was given a target price of $95 along with an ‘Overweight’ rating by Ben Bienvenu at Stephens on August 9. This rating followed the company’s Q3 FY22 results that saw operating margins contract due to supply chain-related challenges. Experts believe that the 8% decline in stock price following the quarterly results has priced in all the short-term challenges for Tyson Foods, Inc. and provides an attractive entry point. Bienvenu believes that there is clear momentum in the chicken business.

Out of the 895 hedge funds tracked by Insider Monkey that filed 13Fs for the Q2 reporting period, 37 funds held a stake in Tyson Foods, Inc. as of June 30.

7. Archer-Daniels-Midland Company (NYSE:ADM)

Number of Hedge Fund Holders: 42

Archer-Daniels-Midland Company (NYSE:ADM) is an Illinois-based food processing and commodities trading organization.

Sam Margolin at Wolfe Research started coverage on Archer-Daniels-Midland Company stock with an ‘Outperform’ rating and a target price of $117 in a research note issued on August 12. The analyst believes that Archer-Daniels-Midland Company, through its Nutrition division, offers an opportunity for “highly competitive dividend growth.” The analyst has a positive outlook on commodity prices due to the biofuel policies recently introduced by the U.S. government.

The financial strength of Archer-Daniels-Midland Company can be gauged by the company’s strong Q2 2022 results published on July 26. Revenue increased by 19% YoY to $27.3 billion and surpassed the consensus estimate of $24.9 billion. Meanwhile, the firm’s adjusted EPS of $2.15 easily surpassed analysts’ forecast of $1.72. Archer-Daniels-Midland Company stock offers a modest forward dividend yield of 1.85% as of August 22. The company’s management has also announced that it will institute a share buyback plan of $1 billion by the end of 2022.

Diamond Hill Capital shared its stance on Archer-Daniels-Midland Company in its Q1 2022 investor letter. Here’s what the firm said:

“ADM is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”

6. Corteva, Inc. (NYSE:CTVA)

Number of Hedge Fund Holders: 42

Corteva, Inc. (NYSE:CTVA) is an Indianapolis, Indiana-based agricultural chemical and seed company. Corteva, Inc. has a forward annual dividend yield of 0.98% as of August 22 based on its annual dividend of $0.60 per share.

On August 9, Arun Viswanathan at RBC Capital increased the target price for Corteva, Inc. from $67 to $72 and maintained an ‘Outperform’ rating on the stock following the company’s stellar Q2 2022 results. The analyst highlighted that in the volatile market, Corteva, Inc. is in a strong position to increase its top line, expand its bottom line margins and use healthy free cash flows to buy back stock. Viswanathan believes that Corteva, Inc. should have strong demand for its offerings despite the ongoing inflationary cost pressure.

Of the 895 hedge funds in Insider Monkey’s database that filed 13Fs for the latest quarter, 42 funds held a stake in Corteva, Inc. at the end of Q2 2022.

In its Q1 2022 investor letter, Aristotle Capital Management discussed its outlook on Corteva, Inc.:

“Corteva Agriscience, one of the world’s largest seed and crop protection companies, was a primary contributor for the quarter. Due to its respected brand and the value-added benefits of its patented seeds and crop protection solutions for farmers, Corteva has been able to more than offset input cost inflation with sustainable price increases. In addition, the company’s ongoing mix shift to higher-margin, premium products, a catalyst we previously identified, is aiding both sales and profit growth. Shares were likely also buoyed by the rise in crop prices. Market participants, perhaps eager to chase short-term trends, poured into the sector. At Aristotle Capital, we look past such gyrations and, as long-term investors, do not attempt to predict short-term changes in commodity prices. We remain excited about what we view to be high-quality characteristics and fundamental improvements that permeate Corteva’s business, not the least of which include its pricing power.”

In addition to Corteva, Inc., notable companies like The Mosaic Company, Nutrien Ltd., and Deere & Company have also made it to our list of the 10 best farmland stocks to buy now. Check out where they rank in the second part of this article.

5. Bunge Limited (NYSE:BG)

Number of Hedge Fund Holders: 48

Bunge Limited (NYSE:BG) is an agriculture and food company involved in transporting, storing, and selling specialty oils and milled grains to leading consumer and restaurant brands.

Sam Margolin at Wolfe Research started coverage on Bunge Limited stock with an ‘Outperform’ rating and a target price of $127. The analyst believes the company can provide some upside on the growth guidance it shared with investors due to the favorable commodity price environment. The analyst added that the company’s expected free cash flow yield for FY23 is significantly higher than the average observed between 2015 and 2019.

Although Bunge Limited missed revenue and adjusted EPS estimates with its Q2 2022 results, it increased its minimum FY22 adjusted EPS guidance by $0.50 to $12. Furthermore, Bunge Limited also approved a $1.25 billion share buyback plan to be completed by 2026.

Old West Investment Management presented its insights on Bunge Limited in its Q1 2022 investor letter. Here’s what the firm said:

“Bunge (pronounced BUN-GEE) Ltd is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.

Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)

4. Nutrien Ltd. (NYSE:NTR)

Number of Hedge Fund Holders: 48

Nutrien Ltd. is a Saskatoon, Canada-based fertilizer company that has the distinction of being the biggest manufacturer of potash and the third biggest manufacturer of nitrogen fertilizer in the world.

Although Nutrien Ltd. missed revenue estimates for Q2 2022, it surpassed adjusted EPS forecasts for the period. The company’s revenue achieved year-over-year (YoY) growth of 48% to $14.5 billion during Q2. Furthermore, net income rose from $1.94 per share to $6.51 per share. Nutrien Ltd.’s annual forward dividend yield stands at 2.10% as of August 22.

Following the release of its latest quarterly results, Ben Isaacson at Scotiabank upgraded Nutrien Ltd. stock from ‘Sector Perform’ to ‘Outperform’ on August 9. The analyst assigned the stock a target price of $110 and highlighted his bullish outlook on nitrogen fertilizers. Furthermore, Isaacson anticipates the potash market to moderate in the future and believes that this has been priced into the stock. The analyst believes that Nutrien Ltd. stock has strong fundamental support at a sum-of-the-parts price of $112.

3. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 50

The Mosaic Company is a Florida-based miner and processor of phosphate and potash minerals into fertilizers.

The U.S.’s biggest manufacturer of potash and phosphate fertilizer was upgraded from ‘Neutral’ to ‘Buy’ on August 3 by P.J. Juvekar at Citi. The analyst also increased the target price on the stock from $57 to $61. Juvekar anticipates agriculture stocks to outperform the broader market given the uncertain macroeconomic outlook. The analyst believes that the agriculture industry and the broader economy are in different phases of the economic cycle, with fertilizer stocks expected to come into the limelight again after the seasonal slowdown experienced during the summer months. As the Latin American crop planting season comes into focus, fertilizer stocks like The Mosaic Company will again receive a boost.

On August 18, The Mosaic Company declared a quarterly dividend of $0.15 per share, which translates into an annual forward yield of 1.11% for the stock.

The Mosaic Company was mentioned in the Q1 2022 investor letter of Carillon Tower Advisers. Here’s what the firm said:

“Despite a rally near the end of the quarter, major equity indexes closed lower as fear of U.S. Federal Reserve (FED) balance sheet tapering, interest rate hikes, and war in the Ukraine sent the bulls into retreat. Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Potash and phosphate fertilizer producer Mosaic (NYSE:MOS) performed strongly as war exacerbated already short supplies of key oil and gas exploration.”

2. CF Industries Holdings, Inc. (NYSE:CF)

Number of Hedge Fund Holders: 52

CF Industries Holdings, Inc. (NYSE:CF) is an Illinois-based manufacturer and distributor of various kinds of fertilizers.

CF Industries Holdings, Inc. believes that the continued requirement to restock grain reserves around the world is likely to drive up global nitrogen demand. Hence, the company anticipates producing significant free cash flow for a long time. CF Industries Holdings, Inc. plans to increase its ammonia production footprint while providing returns to shareholders. The stock offers a dividend yield of 1.51% as of August 22.

On August 10, Benjamin Theurer upgraded CF Industries Holdings, Inc. stock from ‘Equal Weight’ to ‘Overweight’ and increased the target price from $103 to $120. The analyst highlighted that due to lower natural gas prices in the U.S. compared to Europe, CF Industries Holdings, Inc. has the advantage of producing low-cost ammonia. This will aid the company in outperforming its European competitors.

Analysts believe that some players in Europe will not be able to compete as strong demand and tight supply will cause challenges, benefiting CF Industries Holdings, Inc.. Given the macroeconomic conditions, experts find it very hard not to be bullish on U.S.-based nitrogen fertilizer stocks and even recommend them over their European competitors.

Here’s what Carillon Tower Advisers said about CF Industries Holdings, Inc. in its Q1 2022 investor letter:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. CF Industries manufactures and distributes nitrogen fertilizer. The stock rose as Russia’s invasion of Ukraine accelerated already rising fertilizer prices.”

1. Deere & Company (NYSE:DE)

Number of Hedge Fund Holders: 54

Deere & Company is a Moline, Illinois-based manufacturer of agricultural and forestry equipment and machinery, with a portfolio of products to serve the construction sector as well.

Although the firm posted mixed Q3 FY22 results on August 19, analysts remain bullish on the long-term outlook of Deere & Company. Deere & Company observed YoY revenue growth of 22.3% to $14.1 billion during the second quarter. The company narrowed its FY22 net earnings guidance to a range of between $7 billion and $7.2 billion compared to its prior forecast range of $7 billion to $7.4 billion. The revised forecast still falls in line with the consensus forecast of $7.13 billion.

Despite the supply-chain challenges, Deere & Company is well-positioned in the industry due to backlogs and rising market share. The firm’s management believes that the company’s agricultural fundamentals are very strong and anticipates a high single to low double-digit increase in its product prices in the future.

In its Q1 2022 investor letter, ClearBridge Investments presented its outlook on Deere & Company. Here’s what the firm said:

“In our engagements with farm equipment maker Deere (NYSE:DE), we have followed new technology as it has developed from early promise of environmental and social benefits to market reality. In March 2022, Deere’s Chairman & CEO and CFO met with ClearBridge’s investment team in our New York offices. While prior to the pandemic we had regularly hosted the company, this meeting was among the most interesting as the relatively new CEO outlined a bold plan that placed improved environmental stewardship squarely at the center of the company’s future.

Industrial farming, at its core, is not an especially environmentally friendly enterprise. Agronomic practices have improved over time, but fertilizer, herbicide and pesticide applications and water usage remain problematic. Deere believes its precision farming technology can drive down chemical and fertilizer volumes materially —possibly by as much as 70% — as sensors and cameras attached to tractors, sprayers and combines help determine the exact level of chemicals that might be required…” (Click here to see the full text)

For more industry-specific stocks that are worth considering, check out the 12 Best Cybersecurity Stocks to Buy Now and the 11 Best Artificial Intelligence Stocks To Buy Now.

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