5 Agriculture Stocks To Grow With

By Investopedia Staff | March 29, 2012 AAA

In the development of alternative sources of fuel, the world's supply of agricultural products (such as corn) is now split into consumption related activities and towards biofuels creation. The end result of these two opposing factors is the escalation in the price of agricultural prices. Similarly, with growing global populations and food shortages/hoarding compounding the issue, consumers will be paying more for food for the foreseeable future, which is also known as agflation. (For more, see Brazilian Ethanol Bounces Back)

Investopedia Markets: Explore the best one-stop source for financial news, quotes and insights.

Increasing prices for agricultural products do prove to be a boon for farmers, who will now earn large profits for each piece of grain and drop of milk produced. While it is unlikely for the average person to suddenly switch careers to become farmers in order to get a piece of the action, but as investors we also ride this wave by entering positions in agricultural related companies as a picks and shovels play.

The rationale is that farmers will need the best seeds, fertilizers, animal feed and other agricultural inputs in hopes of producing the largest yields possible. Therefore, the company's that are selling products to the farmers should be in for a decent payday as well.

Agricultural Stocks To Know


Company

Market Capitalization

Monsanto Co.(NYSE:MON)
42.7B
Cosan Ltd.
(NYSE:CZZ)
3.94B
Deere & Company. (NYSE:DE) 32.51B
Agrium Inc.
(NYSE:AGU)
13.63B
Tractor Supply Company
(Nasdaq:TSCO)
6.46B
03/30/2012



Bottom Line
Food prices will likely continue to rise as our population grows and biofuel development gains popularity. As a result, the companies mentioned in the table above could be a good addition to any portfolio. (For more, see 3 Companies You Can't Live Without)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

You May Also Like

Related Analysis
  1. Stock Analysis

    Andersons Hikes Quarterly Dividend by 27.3%, Shares Up - Analyst Blog

  2. Stock Analysis

    Deckers Expands in Canada, Opens Two More UGG Outlets - Analyst Blog

  3. Stock Analysis

    Global X Plans for an Emerging Market SuperDividend ETF - ETF News And Commentary

  4. Chart Advisor

    Profit From Holiday Spending With This ETF

  5. Stock Analysis

    Will DTE Energy Prosper from Economic Revival in Michigan? - Analyst Blog

Trading Center