During the October 7 lightning round of Mad Money, a caller highlighted Archer-Daniels-Midland Company’s (NYSE:ADM) forward earnings multiple and dividend before asking whether it had room to grow. Jim Cramer replied:
Okay, Archer-Daniels has kind of done nothing for a very long time until now, and I actually think it’s a terrific idea for you. I also like John Deere. I like the ag business and not just because it’s midterm elections. I think Archer-Daniels’ time has come.
DM secured a spot among our biggest agriculture stocks for 2026, but four companies ranked higher. See which agriculture stocks outranked ADM and why they made the list.
ADM’s Recovery Is Showing Up in Processing Profits
Archer-Daniels-Midland Company reported second-quarter adjusted earnings of $1.84 per share, compared with $0.93 a year earlier. Ag Services and Oilseeds operating profit increased 129% to $867 million, supported by stronger processing margins. Nutrition operating profit also rose 51% to $172 million. Management raised its full-year adjusted earnings forecast to $5.15 – $5.60 per share, from $4.15–$4.70. Its outlook highlights improved conditions in crushing and ethanol, including support from U.S. biofuel requirements and elevated energy prices.
Deere & Company (NYSE:DE) represents a different agricultural investment. Its recovery depends more directly on equipment purchases. Management believes fiscal 2026 will mark the bottom of the current agricultural equipment cycle, pointing to early orders, improving used-equipment inventories and technology adoption. That remains management’s expectation rather than a confirmed turning point. Deere also appears in a billionaire-focused list of battery stocks, a less obvious grouping for an agricultural equipment maker. Its inclusion offers another investment angle beyond the timing of farmers’ next purchases.
Deere’s Results Remain Uneven Across Its Businesses
Deere & Company’s fiscal third-quarter 2027 net income increased to approximately $1.38 billion from $1.29 billion. Construction and Forestry sales rose 18%, and Small Agriculture and Turf sales increased 12%. Those improvements helped offset a 6% sales decline in Production and Precision Agriculture. Operating profit in that larger agricultural division fell 9%.
The distinction matters for Cramer’s broader agricultural call. Archer-Daniels-Midland Company is already benefiting from stronger processing economics, while Deere is still reporting weakness in an important equipment business. Those differences also matter when considering the wider range of farmland and agriculture stocks. The list contained both companies but at different rankings. The agricultural theme connects them, but the source of returns can vary considerably.
ADM’s rebound also includes items investors should separate from recurring performance. Ag Services and Oilseeds benefited from approximately $100 million of positive mark-to-market and timing effects. Its outlook remains sensitive to processing margins, energy prices, trade conditions, and policy support. As for Deere, it recorded $110 million of tariff recoveries in the quarter. That benefit, along with the continued decline in large-equipment sales, is a reason to examine the sources of earnings improvement rather than relying only on the higher net income figure.
Agricultural Exposure Comes at Very Different Prices
Data shows ADM trading at approximately 13.85x forward earnings, compared with 30.8x for Deere. ADM’s multiple was close to the caller’s 14.25x reference, while Deere has a substantial premium. These companies are not direct competitors, so the gap does not establish relative fair value by itself. It does show that investors are paying very different prices for two forms of agricultural exposure. Deere’s valuation is more dependent on the expected equipment recovery. ADM looks less expensive beside Deere, but its own valuation history offers a different test. That comparison raises a question about how much of the processing recovery investors are already paying for.
Hedge Fund Counts Fell for Both Companies
As per Insider Monkey’s database, 35 hedge funds had stakes in Archer-Daniels-Midland Company in Q2, down from 39 in Q1. Deere & Company had 59 holders, compared with 62 previously. Short interest stood at 3.97% of ADM’s float and 2.08% of Deere’s. Both experienced modest declines in fund participation, with a larger relative short position in ADM.
Cramer’s comment connects the companies through agriculture, but their investment cases differ. ADM combines improving processing profits with the lower earnings multiple. Deere offers the prospect of an equipment recovery, although its latest large-agriculture results show that the recovery still has work to do.
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