There are many different ways to invest in the agricultural industry, even after one narrows the investment method down to stocks. There are stocks in food equipment, supply, biofuel, chemical, farm products, and fresh produce companies, just to name a few. The names of the organizations are recognized by most people because these entities have been in business for many years.
In terms of farm equipment companies, analysts feel that Deere & Company, CNH Global, and AGCO are the stocks to watch. CNH’s market value is less than one-half the size of Deere but it is the second largest agricultural equipment manufacturer on the planet. AGCO is based in the U.S. but gets most of its revenues from Western Europe. It also holds a 60 percent share in the tractor market in Brazil, a very lucrative investment.
Fertilizer companies such as the giant Potash Corp. have been run up by Wall Street during recent years. Since about 90 percent of farmland is already utilized, the most feasible way to optimize output is to use more fertilizer. Companies that produce the ingredients necessary for the production of fertilizer also stand to benefit from this situation. Therefore, investments in organizations like Saskatchewan Potash Corporation can be very worthwhile.
Some experts advise investors to sink their money into the supermarkets such as Wal-Mart, Kroger, and UK-based Tesco because these entities are able to pass through the increasing food prices. From a commodities perspective, they recommend an investment in wheat because the export market for this commodity appears positive. Other opportunities are chemical and herbicide companies such as DuPont as well as agricultural transportation and storage companies like Andersons Inc.
Analysts predict that agriculture has a bright outlook for the next ten years and they recommend making an investment in agricultural stocks. There are many different ways to invest in stocks within this industry, so an individual should take some time to develop a targeted investment plan. The portfolio can be diversified as the investor develops a comfort level with the industry.
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