Agriculture has evolved from basic farming practices into a highly diverse sector, with enhanced soil preparation techniques, crop nutrients for a healthier yield, genetically modified soils, and superior seeds for super-crops. These developments have propelled the agriculture industry into a highly commercial sector of the economy. According to the OECD, the global demand for agricultural output will grow by 15% in the next 10 years, and the agricultural producers worldwide will be able to keep up with the elevated demand with enhanced farming practices.
There are several macro uncertainties after the Russian invasion of Ukraine, and this makes it impossible to predict the future outlook for any industry accurately. The strong connection between the fertilizer and energy markets can lead to spillover effects for agricultural suppliers around the world. Although countries are shifting from their suppliers of agricultural inputs from Russia and Ukraine to alternative sources, this will lead to significantly higher prices for commodities. Russia and Ukraine are among the largest exporters of agricultural raw materials.
Industry analysts have warned about impending food shortages in the current macro backdrop, as the skyrocketing prices for fertilizers and soil nutrients are unaffordable for most small-scale farmers, who cannot keep their yields up. Brazil, a major exporter of soybean and corn, reported that farmers are using least quantities of fertilizer for their crops. The Brazilian government is trying to mine potash from protected indigenous lands in the country.
Similarly, farmers in Kenya and Zimbabwe have shifted to manure as a source of crop nourishment amid the skyrocketing prices for plant health solutions. The U.S. Department of Agriculture has projected that fertilizer bills will increase by 12% in 2022, compared to the 17% surge in the previous year. Russia and Belarus accounted for 40% of potash exports worldwide, and Russia and Ukraine combined contributed to 30% of global wheat exports and 20% of corn exports. These quantities cannot be realistically matched by alternate producers around the world, even at higher prices. This is why a global food crisis is on the horizon according to market experts.
Photo by Sebastian Gómez on Unsplash
Our Methodology
After an extensive assessment of the global agriculture industry, we picked the biggest agriculture companies based on their market capitalization as of March 23. We have mentioned the revenue and income for 2021, as well as available analyst ratings and business fundamentals of the companies.
Biggest Agriculture Companies in the World
12. Bayer Aktiengesellschaft (OTC:BAYRY)
Market Capitalization as of March 23: $64.133 billion
Number of Hedge Fund Holders: 1
Bayer Aktiengesellschaft (OTC:BAYRY) is a German multinational life sciences company that develops and sells agricultural chemicals, seeds, and biotechnology solutions. The company also operates in the pharmaceutical sector, providing consumer health products. Bayer Aktiengesellschaft’s market capitalization on March 23 exceeded $64 billion, making it one of the largest agricultural entities in the world.
On March 10, Bayer Aktiengesellschaft announced plans to sell its Environmental Science Professional segment to Cinven, a London-based private equity firm, for $2.6 billion. This will enable Bayer Aktiengesellschaft to focus primarily on its main agricultural business.
The company reported on March 1 a Q4 net profit of €1.16 billion, above the net profit expectations of €731 million by analysts. Bayer Aktiengesellschaft also guided for higher earnings and sales in 2022. Its agricultural crop science division reported sales that were up 11% year-over-year, reaching €4.69 billion.
Barclays analyst Emily Field raised the price target on Bayer Aktiengesellschaft to €60 from €55 and maintained an Equal Weight rating on the shares on March 15. The stock has gained over 13% in the last month, benefiting from the Russian war which propelled agricultural shortages in the world.
The Q4 database of Insider Monkey suggests that Frederick Disanto’s Ancora Advisors held 710 shares of Bayer Aktiengesellschaft, worth $9,000.
In addition to Nutrien Ltd. (NYSE:NTR), Deere & Company, and Archer-Daniels-Midland Company (NYSE:ADM), Bayer Aktiengesellschaft is one of the most prominent names in the global agriculture market.
11. CVR Partners, LP (NYSE:UAN)
Market Capitalization as of March 23: $1.486 billion
Number of Hedge Fund Holders: 4
CVR Partners, LP (NYSE:UAN) is a Texas-based nitrogen fertilizer company that supplies ammonia, ammonium nitrate, and urea products for agricultural and industrial applications. CVR Partners, LP’s market cap on March 23 came in at approximately $1.5 billion. The stock has gained roughly 36% in the last month, as the war has caused demand to rise considerably, owing to shortages of agricultural inputs.
The total revenue at the end of December 2021 exceeded $532 million, compared to $350 million in 2020. CVR Partners, LP reported a net income of $78.2 million in 2021, a significant improvement from a net loss of $98.2 million in the prior year.
On February 25, CVR Partners, LP declared a $5.24 per share quarterly dividend, a 78.8% increase from prior dividend of $2.93. The dividend was paid on March 14, and the stock yields 7.11% as of March 23.
The Q4 database of Insider Monkey reported that 4 hedge funds held long positions in CVR Partners, LP, compared to 5 funds in the prior quarter. Glendon Capital Management owned the largest stake in the company, with 133,523 shares worth over $11 million.
10. ICL Group Ltd (NYSE:ICL)
Market Capitalization as of March 23: $15.253 billion
Number of Hedge Fund Holders: 8
ICL Group Ltd (NYSE:ICL)’s market cap of more than $15 billion has led the company to be featured on our list of the biggest agriculture companies in the world. ICL Group Ltd was founded in 1968 and is headquartered in Tel Aviv, Israel. The company supplies specialty minerals and chemicals worldwide, offering potash, phosphate-based fertilizers, functional food ingredients, and phosphate additives.
On February 9, ICL Group Ltd declared a $0.1318 per share quarterly dividend, a 57.7% increase from its prior dividend of $0.0836. The dividend was distributed on March 8, to shareholders of record on February 23. The stock yields 2.68% as of March 23.
ICL Group Ltd reported its Q4 results on February 9, posting earnings per share of $0.26, above consensus by $0.10. Revenue over the period jumped roughly 55% year-over-year to $2.04 billion, topping market estimates by $118.90 million. The company expects full year adjusted EBITDA for 2022 to fall between $1,850 million and $2,050 million, of which $875 million to $925 million will be gained from its specialties-focused businesses.
According to the fourth quarter database of Insider Monkey, 8 funds reported owning stakes in ICL Group Ltd, up from 6 funds in the earlier quarter. The total stakes held in Q4 amounted to approximately $71 million.
9. FMC Corporation (NYSE:FMC)
Market Capitalization as of March 23: $16.525 billion
Number of Hedge Fund Holders: 27
FMC Corporation (NYSE:FMC) is a Pennsylvania-based agriculture sciences company that offers products and solutions for crop protection and plant health. FMC Corporation operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. The market capitalization of FMC Corporation stands at $16.5 billion, making it one of the largest agricultural companies worldwide.
On February 25, FMC Corporation declared a quarterly dividend of $0.53 per share. The dividend will be distributed on April 21, for shareholders of record on March 31.
FMC Corporation published its fourth quarter results on February 9, reporting earnings per share of $2.16, outperforming analysts’ estimates by $0.15. The revenue jumped 22.69% year-over-year to $1.41 billion, above market consensus by $47.32 million. The full-year revenue for 2021 crossed $5 billion, and the net income came in at $736.5 million.
Citi analyst P.J. Juvekar lifted the price target on FMC Corporation to $152 from $137 and kept a Buy rating on the shares on March 23. The analyst contended that the Russia-Ukraine war has caused fertilizer prices to hike, given supply concerns in already struggling markets.
Among the hedge funds tracked by Insider Monkey, 27 funds were bullish on FMC Corporation at the end of the December quarter, compared to 28 funds in the prior quarter. Cardinal Capital held the biggest stake in FMC Corporation, with 976,795 shares worth $107.3 million.
Here is what Tweedy, Browne Company had to say about FMC Corporation in its Q3 2021 investor letter:
“FMC Corporation provides crop chemicals for the agriculture industry. Crop chemicals protect farmers’ fields from insects, fungus, and weeds, which allows them to increase their crop yields. As a result, farmers are more than willing to pay a price premium for effective products. Similar to pharmaceutical companies, crop protection products also are often “patented,” which gives them pricing power. In addition, the development time and investment, combined with navigating the regulatory process in a variety of jurisdictions, and then achieving distribution at scale, provide immense barriers to entry in the industry. Small companies may be able to conduct research on active ingredients, but it will be difficult for them to “commercialize” them. Given all of this, FMC Corporation has enjoyed a high return on capital and has been a very profitable business, earning a 27% EBITDA margin and a 25% ROE including goodwill for the year 2020.
FMC is diversified geographically and by crop, which should serve to make it a less cyclical business. It also has, in our view, a very good new product pipeline, and aims to grow its revenues at 5% to 7% annually through 2023, and its EBITDA at 7% to 9% annually through 2023. The company also has had some insider purchases recently from both its CEO and CFO…” (Click here to see the full text)
8. CNH Industrial N.V. (NYSE:CNHI)
Market Capitalization as of March 23: $22.321 billion
Number of Hedge Fund Holders: 35
CNH Industrial N.V. (NYSE:CNHI) markets and sells agricultural and construction equipment. The company operates across 180 countries, catering to customers in high growth markets. The Agriculture segment of CNH Industrial N.V. offers farm machinery such as tractors, cotton pickers, harvesters, hay and forage equipment, planting equipment, and soil preparation and cultivation implements. The company has global headquarters in London.
CNH Industrial N.V. delivered solid Q4 results on February 9, reporting an EPS of $0.25, topping market estimates by $0.04. The $9.07 billion revenue was up 6.72% year-over-year, coming in above market consensus by $2.61 billion. The full-year revenue for 2021 amounted to $33.4 billion, a significant increase from the 2020 revenue of $26 billion. Similarly, while the company reported a net loss of $493 million in 2020, the 2021 net income of $1.7 billion showed the resilience of operations post-pandemic.
On March 1, CNH Industrial N.V. announced the board approval of a share buyback program up to €100 million. The company also announced that on February 24, 2022, its CEO Scott W. Wine purchased 150,000 of CNH Industrial N.V. common shares at an average price of $13.6881.
Citi analyst Timothy Thein resumed coverage of CNH Industrial N.V. on February 18 with a Buy rating and a $19 price target. The analyst observed the stock’s “compelling” 12-month total return potential based purely on the company’s earnings growth. He also remained positive on global agriculture equipment fundamentals, and believes growing precision adoption will help with greater pricing power.
Among the hedge funds tracked by Insider Monkey, 35 elite funds held long positions in CNH Industrial N.V. in Q4 2021, up from 25 funds in the prior quarter. Harris Associates is the biggest shareholder of the company, owning approximately 98 million shares worth $1.90 billion.
Here is what Longleaf Partners Fund has to say about CNH Industrial N.V. in its Q4 2021 investor letter:
“CNH Industrial (55%, 2.51%; 16%, 0.65%), a leading farm equipment and commercial vehicle manufacturer globally, was another top performer for the year. CNH reported strong results throughout the year, beating our initial conservative expectations. The US agricultural cycle has been firmly in the company’s favor, driven by commodity price strength, healthy farm balance sheets, advanced technology adoption, and aging fleets feeding replacement demand. We believe we are past the mid-cycle but expect the strong upcycle to continue with the solid order books and strong visibility. On December 31, 2021, CNHI completed the demerger of its on-highway business, which includes its IVECO commercial vehicles and FPT powertrain businesses. This transaction creates a pure play off-highway company comprising the higher-multiple agricultural, construction and specialty vehicle businesses. We expect a narrowing of the discount to the net asset value once we have two focused companies valued at peer multiples.”
7. Nutrien Ltd. (NYSE:NTR)
Market Capitalization as of March 23: $58.21 billion
Number of Hedge Fund Holders: 36
Nutrien Ltd. is headquartered in Saskatoon, Canada, and the company provides potash, nitrogen, phosphate, and sulfate products. Nutrien Ltd. deals in crop nutrients and plant protection solutions. The company made it to our list of the biggest agriculture companies in the world owing to its market cap of over $58 billion.
The company posted a 12-month revenue of $26.8 billion for 2021, up from $20 billion last year. Similarly, the net income at the conclusion of 2021 stood at $3.1 billion, an exponential increase from the 2020 net income of $459 million.
Nutrien Ltd. is also positioned to gain from the Russia-Ukraine crisis, and the stock has climbed over 36% in the last month resultantly. Citi analyst P.J. Juvekar on March 22 raised the price target on Nutrien Ltd. to $126 from $89 and kept a Buy rating on the shares, citing the competitive advantage for fertilizer names in the high-price environment amid the war backdrop.
First Eagle Investment Management held the largest stake in Nutrien Ltd., owning 11.3 million shares worth $853.2 million. Overall, the Q4 data of elite funds maintained by Insider Monkey suggests that 36 hedge funds were bullish on the stock, with collective stakes of approximately $870 million.
Here is what Miller/Howard Investments had to say about Nutrien Ltd. in its Q1 2021 investor letter:
“For the most part, performance of the stocks within the Income-Equity Strategies was skewed towards the high-performing market sectors with two exceptions – our consumer discretionary and technology stocks both did better than their broad market peers… We bought Nutrien (NTR), a producer of fertilizer, which we believe should benefit from increasing crop prices.”
6. Bunge Limited (NYSE:BG)
Market Capitalization as of March 23: $15.98 billion
Number of Hedge Fund Holders: 38
Bunge Limited (NYSE:BG) is an American agribusiness that serves customers worldwide, providing agricultural commodities such as soybeans, rapeseed, canola, sunflower seeds, wheat, and corn. The company also supplies non-GMO items, refined oils, and corn-milling products.
At the conclusion of 2021, the company’s financials were significantly higher than the prior year. Revenue for 2021 exceeded $59 billion, compared to $41.4 billion in 2020. The net income of $2.07 billion in 2021 was also above the $1.14 billion recorded at the end of the prior year. Bunge Limited has a market cap of close to $16 billion, making it one of the biggest agriculture names in the world.
On February 14, Barclays analyst Benjamin Theurer raised the price target on Bunge Limited to $120 from $110 and kept an Overweight rating on the shares. The analyst expects “another solid year” after Bunge Limited’s projection for an EPS of at least $9.50 in 2022.
Bunge Limited is a popular food stock in the finance world. A total of 38 hedge funds in the database of Insider Monkey reported long bets on Bunge Limited, and Jack Woodruff’s Candlestick Capital Management was the biggest shareholder, with a $95.6 million position.
Bunge Limited is one of the leading forces in the global agriculture market, just like Nutrien Ltd., Deere & Company, and Archer-Daniels-Midland Company.
5. Archer-Daniels-Midland Company (NYSE:ADM)
Market Capitalization as of March 23: $50.111 billion
Number of Hedge Fund Holders: 41
Archer-Daniels-Midland Company is a Chicago-based company that merchandises agricultural commodities and food ingredients. It is involved in the import and export of agricultural inputs, such as oilseeds, corn, wheat, milo, oats, and barley.
For 2021, Archer-Daniels-Midland Company’s revenue exceeded $85 billion, up almost $21 billion as compared to the prior year revenue. The company reported a net income of $2.70 billion in 2021, up from $1.7 billion in 2020.
Archer Daniels-Midland on February 23 priced its first sustainable bond, which will advance its ESG initiatives. The offering closed on February 28, and Archer-Daniels-Midland Company will issue $750 million in aggregate principal amount of 2.9% notes due 2032.
Barclays analyst Benjamin Theurer on March 4 maintained an Overweight rating on Archer Daniels-Midland, citing strong long-term fundamentals and the company’s ability to capitalize on the near-term market disruption. He raised the price target on Archer Daniels-Midland to $88 from $80.
According to the database of elite hedge funds maintained by Insider Monkey, Archer Daniels-Midland was found in the portfolios of 41 funds at the end of December 2021, compared to 27 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is the largest shareholder of the company, with 5.70 million shares worth approximately $386 million.
4. Corteva, Inc. (NYSE:CTVA)
Market Capitalization as of March 23: $42.071 billion
Number of Hedge Fund Holders: 42
Corteva, Inc. (NYSE:CTVA) is an Indiana-based agribusiness that aims to optimize crop yields by offering crop protection technologies. These crop solutions improve weather resistance, control disease, and enhance the nutritional characteristics and integrity of crops.
For 2021, Corteva, Inc. reported full-year revenue of $15.6 billion, and a net income of $1.75 billion. The Q4 GAAP EPS was disclosed in February, amounting to $0.22, above market consensus by $0.20.
Corteva, Inc. is one of the top gainers from the Russia-Ukraine conflict, given the already tight agriculture markets. On March 22, Citi analyst P.J. Juvekar lifted the price target on Corteva, Inc. to $66 from $59 and kept a Buy rating on the shares.
Among the hedge funds tracked by Insider Monkey, 42 hedge funds had placed long bets on Corteva, Inc. at the end of the fourth quarter of 2021, compared to 41 funds in the third quarter. Jeffrey Smith’s Starboard Value LP is the biggest shareholder of the company, with 8.90 million shares worth $420.8 million.
Here is what Rhizome Partners had to say about Corteva, Inc. in its Q1 2021 investor letter:
“We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as Corteva. We do understand the market’s rationale. For example, Corteva operates in a duopoly with Monsanto, owned by Bayer AG, that provides genetically modified seeds and pesticides. With some operating leverage, the company can probably grow FCF at 4-6% a year. This brings the total return close to the long-term return of the S&P 500 index of 10%. Through trial and error, we have come to appreciate how scale, higher market share, route densities, switching costs, and collaborative relationships amongst major industry players can contribute to sustained high returns on invested capital.”
3. The Mosaic Company (NYSE:MOS)
Market Capitalization as of March 23: $25.019 billion
Number of Hedge Fund Holders: 46
Incorporated in 2004 and headquartered in Tampa, Florida, The Mosaic Company (NYSE:MOS) operates via three segments – Phosphates, Potash, and Mosaic Fertilizantes. The company focuses its mining, extraction, and production activities on phosphates, potash, and nitrogen crop nutrition products.
The Mosaic Company’s full-year revenue for 2021 was $12.3 billion, up 42.34% year-over-year from its 2020 revenue of $8.6 billion. The net income also jumped from $666 million in 2020 to $1.6 billion in 2021. With a market cap of more than $25 billion, The Mosaic Company is one of the leading global agriculture names.
As fertilizer prices cross their 2008 peaks, The Mosaic Company has been a top gainer on Wall Street. The stock has climbed roughly 50% amid the macro war backdrop. On March 15, Goldman Sachs analyst Adam Samuelson upgraded The Mosaic Company to Buy from Neutral with an $83 price target.
According to the fourth quarter database of Insider Monkey, 46 hedge funds were bullish on The Mosaic Company. Kerr Neilson’s Platinum Asset Management is a prominent shareholder of the company, with 3.8 million shares worth over $150 million.
Here is what Ariel Focus Fund had to say about The Mosaic Company in its Q3 2021 investor letter:
“Our third quarter contributors generally fit this “happy family” description. Mosaic Company is the largest contributor to performance this year as well as our biggest holding as we go to print. The company returned +12.20% in the quarter and +56.16% so far this year. We have long believed Mosaic is well positioned to help the world feed its 7 billion people with a better diet amid finite agricultural resources. The company’s nutrients, particularly phosphates and potash, are key to improving yields on the limited number of global acres devoted to farming. Mosaic believes up to 60% of the yield on many crops is determined by the appropriate application of nutrients. For this reason, the company has remained focused on expanding its leadership position in this core fertilizer business. For several years, this concentrated effort did not show results. But in 2021, Mosaic’s focus began to pay off. Strong U.S. crop prices as well as growing transportation costs for imported fertilizer from overseas mines have led to improved earnings expectations. Last December, analysts showed a mean estimate for Mosaic 2021 EPS of $1.43. Today, those same analysts expect the company to earn $4.67! Estimates for 2022 EPS have also increased dramatically from $2.10 as of December 2020 to $4.99 today. We believe Mosaic will also continue to benefit from global inflation.”
2. CF Industries Holdings, Inc. (NYSE:CF)
Market Capitalization as of March 23: $21.475 billion
Number of Hedge Fund Holders: 58
With a market capitalization of more than $21 billion, CF Industries Holdings, Inc. (NYSE:CF) is a notable agriculture company based in Deerfield, Illinois. The company’s product portfolio primarily includes anhydrous ammonia, granular urea, urea ammonium nitrate, and ammonium nitrate. CF Industries Holdings, Inc. is a major contributor in the fertilizer market.
In the company’s full-year financial results, the 2021 revenue came in at $6.5 billion, a 58.54% growth as compared to the prior-year revenue of $4.1 billion. The net income grew 189% year-over-year to $917 million in 2021. Citi analyst P.J. Juvekar boosted the price target on CF Industries Holdings, Inc. on March 22 to $121 from $86 and kept a Buy rating on the shares, acknowledging the company as a clear gainer amid the Russia-Ukraine war.
Matthew Barrett’s Glendon Capital Management is the biggest shareholder of the company, with more than 5 million shares worth $363.3 million. Overall, 58 hedge funds were bullish on CF Industries Holdings, Inc. at the end of December 2021.
1. Deere & Company (NYSE:DE)
Market Capitalization as of March 23: $132.383 billion
Number of Hedge Fund Holders: 61
Deere & Company was founded in 1837 and is headquartered in Moline, Illinois, operating via four primary segments – Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The company’s core business is to supply agriculture and forestry equipment.
On March 22, Deere & Company shares rose to a record high of $436.28, as the company is a prominent gainer amid the Russian invasion of Ukraine. Deere & Company is also the top year-to-date performer in the S&P 500 industrials index, posting a 25% gain.
The full-year revenue for 2021 of Deere & Company came in at roughly $44 billion, up from $35.5 billion in the previous year. The net income in 2021 grew approximately 117% year-over-year to $5.96 billion. Deere & Company’s market cap clocked in over $132 billion on March 23, making it one of the biggest agriculture companies in the world.
According to the fourth quarter database of Insider Monkey, Bill & Melinda Gates Foundation Trust is a significant shareholder of Deere & Company, with more than 1 million shares worth $354.4 million. Overall, 61 hedge funds placed long bets on the stock at the end of the December quarter.
Here is what Harding Loevner has to say about Deere & Company in its Q2 2021 investor letter:
“In the US, where we increased our weight as part of our recent portfolio manager transition, two of our industrial holdings stood out (one is) John Deere. John Deere delivered stronger-than-expected quarterly earnings and raised its guidance for the full-year. Sales of Deere’s tractors and combine harvesters are underpinned by Chinese demand for agriculture products and the bioethanol market rebounding with oil prices.”
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