7 Worst Vertical Farming and Hydroponic Stocks to Buy

4. Village Farms International, Inc. (NASDAQ:VFF)

Short % of Float: 2.46%

Number of Hedge Fund Holders: 7

Village Farms International, Inc. (NASDAQ:VFF) is active across the energy, fresh produce, and cannabis markets and has an established presence in North America and global markets. The company has been broadening its cannabis business, mainly through its fully owned subsidiary, Pure Sunfarms, which has established itself as a leading player in the Canadian market.

Village Farms International, Inc. (NASDAQ:VFF) reported a total revenue of $83 million, indicating an 11% year-over-year growth in Q4, ended December 31, 2024. Full-year revenue witnessed an 18% jump from 2023, reaching $336 million. Fueled by strong organic growth, Canadian cannabis sales increased by 31% year-over-year, while its fresh produce segment also recorded revenue gains.

However, Village Farms International, Inc. (NASDAQ:VFF) witnessed profitability challenges despite achieving strong sales figures. Due to quality control issues, the company took a $10.5 million non-cash write-down on non-flower cannabis inventory in Q4 2024. Its Canadian cannabis business would have achieved an adjusted EBITDA in line with its historical targets without this loss. Meanwhile, to improve operational efficiency, its fresh produce business continued implementing AI-driven cultivation and automation. The company also witnessed surged international cannabis sales, with exports to medical markets increasing 113% year-over-year.

Moreover, Village Farms International, Inc. (NASDAQ:VFF) marked a significant milestone with its expansion into New Zealand. The company disclosed its first cannabis shipment through the country through Pure Sunfarms in 2025. Its top-selling Pink Kush strain, a dominant dried flower product in Canada, will now be available in New Zealand under Medleaf Therapeutics’s Bloom brand. With this move, Village Farms gains a strategic entry into a rapidly growing sector, as the New Zealand cannabis market is expected to grow at a CAGR of 58% by 2030.

However, the company remains vulnerable to risks in the fresh produce segment while making advancements in its cannabis business. Potential tariffs on Canadian and Mexican imports could affect its cost structure, though the company is working on supply chain adjustments to soften the effects. The stock has decreased by over 40% YTD, making Village Farms International, Inc. (NASDAQ:VFF) one of the worst agriculture stocks, as investors’ concerns grow over pricing pressures, regulatory uncertainty, and competitive challenges in the cannabis industry.