10 Worst Farmland and Agriculture Stocks to Buy According to Short Sellers

7. CF Industries Holdings, Inc. (NYSE:CF)

Number of Hedge Funds: 45

Short % of Float: 4.90%

CF Industries Holdings, Inc. (NYSE:CF) is one of the largest suppliers of nitrogen-based fertilizers, which play a crucial role in improving soil fertility and increasing crop yields. The company produces ammonia, granular urea, and urea ammonium nitrate (UAN), which are extensively used by farmers and agricultural businesses to increase their production.

CF Industries Holdings, Inc. (NYSE:CF) reported an adjusted EBITDA of $562 million for Q4 ended December 31, 2024, and $2.3 billion for the full year. These positives, supplemented by steady fertilizer demand, helped the company perform strongly during the quarter. Similarly, net earnings for 2024 were reported to be $1.2 billion, emanating from operational efficiency. As a result of making the profits, the company was able to return $1.9 billion to its shareholders through dividends and share repurchases, which is the highest by the company in over a decade.

Furthermore, CF Industries Holdings, Inc. (NYSE:CF) was able to utilize its full capacity, producing 2.6 million tons of gross ammonia in the fourth quarter and 9.8 million tons for the full year. The company has forecasted production of 10 million tons of ammonia in 2025, highlighting its crucial role as a supplier for the agricultural sector. With the company’s Donaldsonville facility set to start its operations in 2025, CF Industries is continuing to move forward with its carbon capture and sequestration (CCS) projects.

Under the rising global corn demand and limited growth in supply, the nitrogen fertilizer market looks favorable. CF Industries Holdings, Inc. (NYSE:CF) expects strong nitrogen application rates as the U.S. corn acreage is expected to increase in 2025, adding to fertilizer demand. Moreover, major global urea producers facing supply-related issues, such as India’s ongoing challenges in securing tender volumes, further cemented pricing support for nitrogen-based fertilizers.

However, the company still faces issues related to nitrogen price fluctuations and potential changes in regulations. The company looks to counter these concerns and ensure long-term success through its strong production network, ongoing investment efforts in low-carbon ammonia, and its focus on catering to agricultural demand. Despite its ongoing efforts, pessimism remains among the short sellers, which makes CF Industries one of the Worst Farmland and Agriculture Stocks to Buy According to Short Sellers.