13 Best Farmland and Agriculture Stocks To Invest In According to Hedge Funds

5. Archer-Daniels-Midland Company (NYSE:ADM)

Number of Hedge Fund Holders: 34

Archer-Daniels-Midland Company (NYSE:ADM) is an American multinational corporation specializing in food processing and the trading of agricultural commodities. As one of the largest agricultural processing companies globally, the company plays a vital role in connecting farmers with markets, producing ingredients for food, beverages, supplements, and animal feed.

In the third quarter of 2024, which ended on September 30, the company reported earnings before income taxes of $108 million, a decline of 90% compared to the same quarter last year. This drop was primarily due to falling prices for key crops like corn and soybeans, which have hit near four-year lows. Additionally, Archer-Daniels-Midland Company (NYSE:ADM) faced a non-cash impairment charge of $461 million related to its investment in Wilmar.

Despite these challenges, Archer-Daniels-Midland Company (NYSE:ADM) remains a strong player in the market. The company declared a cash dividend of 50 cents per share on November 8, 2024, marking its 372nd consecutive quarterly payment. This long-standing commitment to returning value to shareholders highlights Archer-Daniels-Midland Company’s (NYSE:ADM) stability and reliability.

To address current market conditions, the company is focusing on improving productivity and operational efficiency. In the second quarter of 2024, Archer-Daniels-Midland Company (NYSE:ADM) initiated projects aimed at achieving $500 million in cost reductions over the next two years. These efforts are expected to significantly improve savings by the end of 2024.

The combination of a strong dividend history, ongoing cost-saving initiatives, and a solid market position makes Archer-Daniels-Midland Company (NYSE:ADM) an attractive investment opportunity in the farmland and agriculture sector.