In this article, we discuss 5 biggest agriculture companies in the world. If you want our detailed analysis of the agriculture industry, click 12 Biggest Agriculture Companies in the World.
5. Archer-Daniels-Midland Company (NYSE:ADM)
Market Capitalization as of March 23: $50.111 billion
Number of Hedge Fund Holders: 41
Archer-Daniels-Midland Company (NYSE:ADM) is a Chicago-based company that merchandises agricultural commodities and food ingredients. It is involved in the import and export of agricultural inputs, such as oilseeds, corn, wheat, milo, oats, and barley.
For 2021, Archer-Daniels-Midland Company (NYSE:ADM)’s revenue exceeded $85 billion, up almost $21 billion as compared to the prior year revenue. The company reported a net income of $2.70 billion in 2021, up from $1.7 billion in 2020.
Archer Daniels-Midland (NYSE:ADM) on February 23 priced its first sustainable bond, which will advance its ESG initiatives. The offering closed on February 28, and Archer-Daniels-Midland Company (NYSE:ADM) will issue $750 million in aggregate principal amount of 2.9% notes due 2032.
Barclays analyst Benjamin Theurer on March 4 maintained an Overweight rating on Archer Daniels-Midland (NYSE:ADM), citing strong long-term fundamentals and the company’s ability to capitalize on the near-term market disruption. He raised the price target on Archer Daniels-Midland (NYSE:ADM) to $88 from $80.
According to the database of elite hedge funds maintained by Insider Monkey, Archer Daniels-Midland (NYSE:ADM) was found in the portfolios of 41 funds at the end of December 2021, compared to 27 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is the largest shareholder of the company, with 5.70 million shares worth approximately $386 million.
4. Corteva, Inc. (NYSE:CTVA)
Market Capitalization as of March 23: $42.071 billion
Number of Hedge Fund Holders: 42
Corteva, Inc. (NYSE:CTVA) is an Indiana-based agribusiness that aims to optimize crop yields by offering crop protection technologies. These crop solutions improve weather resistance, control disease, and enhance the nutritional characteristics and integrity of crops.
For 2021, Corteva, Inc. (NYSE:CTVA) reported full-year revenue of $15.6 billion, and a net income of $1.75 billion. The Q4 GAAP EPS was disclosed in February, amounting to $0.22, above market consensus by $0.20.
Corteva, Inc. (NYSE:CTVA) is one of the top gainers from the Russia-Ukraine conflict, given the already tight agriculture markets. On March 22, Citi analyst P.J. Juvekar lifted the price target on Corteva, Inc. (NYSE:CTVA) to $66 from $59 and kept a Buy rating on the shares.
Among the hedge funds tracked by Insider Monkey, 42 hedge funds had placed long bets on Corteva, Inc. (NYSE:CTVA) at the end of the fourth quarter of 2021, compared to 41 funds in the third quarter. Jeffrey Smith’s Starboard Value LP is the biggest shareholder of the company, with 8.90 million shares worth $420.8 million.
Here is what Rhizome Partners had to say about Corteva, Inc. (NYSE:CTVA) in its Q1 2021 investor letter:
“We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as Corteva. We do understand the market’s rationale. For example, Corteva operates in a duopoly with Monsanto, owned by Bayer AG, that provides genetically modified seeds and pesticides. With some operating leverage, the company can probably grow FCF at 4-6% a year. This brings the total return close to the long-term return of the S&P 500 index of 10%. Through trial and error, we have come to appreciate how scale, higher market share, route densities, switching costs, and collaborative relationships amongst major industry players can contribute to sustained high returns on invested capital.”
3. The Mosaic Company (NYSE:MOS)
Market Capitalization as of March 23: $25.019 billion
Number of Hedge Fund Holders: 46
Incorporated in 2004 and headquartered in Tampa, Florida, The Mosaic Company (NYSE:MOS) operates via three segments – Phosphates, Potash, and Mosaic Fertilizantes. The company focuses its mining, extraction, and production activities on phosphates, potash, and nitrogen crop nutrition products.
The Mosaic Company (NYSE:MOS)’s full-year revenue for 2021 was $12.3 billion, up 42.34% year-over-year from its 2020 revenue of $8.6 billion. The net income also jumped from $666 million in 2020 to $1.6 billion in 2021. With a market cap of more than $25 billion, The Mosaic Company (NYSE:MOS) is one of the leading global agriculture names.
As fertilizer prices cross their 2008 peaks, The Mosaic Company (NYSE:MOS) has been a top gainer on Wall Street. The stock has climbed roughly 50% amid the macro war backdrop. On March 15, Goldman Sachs analyst Adam Samuelson upgraded The Mosaic Company (NYSE:MOS) to Buy from Neutral with an $83 price target.
According to the fourth quarter database of Insider Monkey, 46 hedge funds were bullish on The Mosaic Company (NYSE:MOS). Kerr Neilson’s Platinum Asset Management is a prominent shareholder of the company, with 3.8 million shares worth over $150 million.
Here is what Ariel Focus Fund had to say about The Mosaic Company (NYSE:MOS) in its Q3 2021 investor letter:
“Our third quarter contributors generally fit this “happy family” description. Mosaic Company is the largest contributor to performance this year as well as our biggest holding as we go to print. The company returned +12.20% in the quarter and +56.16% so far this year. We have long believed Mosaic is well positioned to help the world feed its 7 billion people with a better diet amid finite agricultural resources. The company’s nutrients, particularly phosphates and potash, are key to improving yields on the limited number of global acres devoted to farming. Mosaic believes up to 60% of the yield on many crops is determined by the appropriate application of nutrients. For this reason, the company has remained focused on expanding its leadership position in this core fertilizer business. For several years, this concentrated effort did not show results. But in 2021, Mosaic’s focus began to pay off. Strong U.S. crop prices as well as growing transportation costs for imported fertilizer from overseas mines have led to improved earnings expectations. Last December, analysts showed a mean estimate for Mosaic 2021 EPS of $1.43. Today, those same analysts expect the company to earn $4.67! Estimates for 2022 EPS have also increased dramatically from $2.10 as of December 2020 to $4.99 today. We believe Mosaic will also continue to benefit from global inflation.”
2. CF Industries Holdings, Inc. (NYSE:CF)
Market Capitalization as of March 23: $21.475 billion
Number of Hedge Fund Holders: 58
With a market capitalization of more than $21 billion, CF Industries Holdings, Inc. (NYSE:CF) is a notable agriculture company based in Deerfield, Illinois. The company’s product portfolio primarily includes anhydrous ammonia, granular urea, urea ammonium nitrate, and ammonium nitrate. CF Industries Holdings, Inc. (NYSE:CF) is a major contributor in the fertilizer market.
In the company’s full-year financial results, the 2021 revenue came in at $6.5 billion, a 58.54% growth as compared to the prior-year revenue of $4.1 billion. The net income grew 189% year-over-year to $917 million in 2021. Citi analyst P.J. Juvekar boosted the price target on CF Industries Holdings, Inc. (NYSE:CF) on March 22 to $121 from $86 and kept a Buy rating on the shares, acknowledging the company as a clear gainer amid the Russia-Ukraine war.
Matthew Barrett’s Glendon Capital Management is the biggest shareholder of the company, with more than 5 million shares worth $363.3 million. Overall, 58 hedge funds were bullish on CF Industries Holdings, Inc. (NYSE:CF) at the end of December 2021.
1. Deere & Company (NYSE:DE)
Market Capitalization as of March 23: $132.383 billion
Number of Hedge Fund Holders: 61
Deere & Company (NYSE:DE) was founded in 1837 and is headquartered in Moline, Illinois, operating via four primary segments – Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The company’s core business is to supply agriculture and forestry equipment.
On March 22, Deere & Company (NYSE:DE) shares rose to a record high of $436.28, as the company is a prominent gainer amid the Russian invasion of Ukraine. Deere & Company (NYSE:DE) is also the top year-to-date performer in the S&P 500 industrials index, posting a 25% gain.
The full-year revenue for 2021 of Deere & Company (NYSE:DE) came in at roughly $44 billion, up from $35.5 billion in the previous year. The net income in 2021 grew approximately 117% year-over-year to $5.96 billion. Deere & Company (NYSE:DE)’s market cap clocked in over $132 billion on March 23, making it one of the biggest agriculture companies in the world.
According to the fourth quarter database of Insider Monkey, Bill & Melinda Gates Foundation Trust is a significant shareholder of Deere & Company (NYSE:DE), with more than 1 million shares worth $354.4 million. Overall, 61 hedge funds placed long bets on the stock at the end of the December quarter.
Here is what Harding Loevner has to say about Deere & Company (NYSE:DE) in its Q2 2021 investor letter:
“In the US, where we increased our weight as part of our recent portfolio manager transition, two of our industrial holdings stood out (one is) John Deere. John Deere delivered stronger-than-expected quarterly earnings and raised its guidance for the full-year. Sales of Deere’s tractors and combine harvesters are underpinned by Chinese demand for agriculture products and the bioethanol market rebounding with oil prices.”
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