This article will discuss the 8 Worst Small Cap Agriculture Stocks to Buy.
To supply the world’s demands for food and raw materials, the agriculture sector—which includes growing crops and rearing livestock—is essential to global sustainability. According to data from the Business Research Company, the industry is predicted to expand at a compound annual growth rate (CAGR) of 7.9% from $14.36 trillion in 2024 to $15.50 trillion in 2025, demonstrating its continued importance as a pillar of the global economy. Despite its value, the industry has experienced structural changes throughout the years due to resource management, changing global demand, and technological improvements.
However, fears concerning stunted productivity and sustainability have appeared in recent years, creating obstacles for long-term growth. A significant shift in the sector has been the growing contribution of the Global South—Africa, Asia, and Latin America—which has accounted for 73% of world agricultural output by 2020. McKinsey & Company predicts that as these rising markets modernize their agricultural processes, their proportion of production will grow even more. This change has been fueled by advances in crop science, irrigation techniques, and mechanization, which have enabled larger yields with the same land resources. Furthermore, reducing inflation in the United States around the end of 2024 has helped reduce input costs, notably in energy, resulting in higher margins for agricultural producers.
Despite these encouraging signs, the industry’s efficiency, as measured by Total Factor Productivity (TFP), has slowed. The global TFP growth rate decreased from 1.6% in the early 2000s to 0.9% during the past decade. With food consumption expected to increase by 60% by 2050, sluggish productivity raises concerns about future food security, price increases, and increased environmental constraints. Likewise, The Farm Products sector has experienced negative year-to-date and one-year returns. In contrast, global food commodity prices rose in February 2025, driven by rising sugar, dairy, and vegetable oil costs.
To address these difficulties, the sector is focusing on sustainability-driven solutions, notably connected agriculture. This entails the use of advanced technologies to improve, manage, and regulate farming operations. Advances in digital technologies have made it feasible to collect and use massive amounts of data at low cost, hence increasing crop yields while reducing resource consumption, such as water, fertilizers, and seeds. According to Fortune Business Insights, the global connected agricultural market was valued at $1.84 billion in 2018 and is expected to grow to $7.22 billion by 2026, with a CAGR of 19.1% over the forecast period. In 2018, North America dominated the global market, accounting for a 34.06% share in 2018.
Given these characteristics, maintaining agricultural expansion would necessitate major investment in next-generation farming technologies and sustainable practices. According to McKinsey & Company, advances in agricultural technology have the potential to deliver a 25% rise in global output over the next decade while improving efficiency and lowering environmental impact. Meanwhile, the sector remains a crucial engine of the US economy, accounting for more than $1.5 trillion in GDP in 2023, or 5.5% of economic output.
Agriculture is the foundation of global economic stability, supporting billions of people globally. However, despite its central role, not all stocks in the industry have performed well.
Amidst these market swings, let’s take a closer look at the eight worst-performing small-cap agriculture stocks in this critical sector.
Photo by Sebastian Gómez on Unsplash
Our Methodology
For this article, we started by using Finviz screeners to identify stocks in the agricultural inputs and farm products industries. From this expanded list, we chose companies with strong market capitalization. Next, we looked at how many hedge funds were invested in these companies because we believe that stocks with a high level of hedge fund interest do well. Finally, we determined the short percentage of float for each firm, which represents the level of negative sentiment or short interest in the stock. The companies were then sorted in ascending order according to their short proportion of float.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
8. Bunge Global SA (NYSE:BG)
Number of Hedge Fund Holders: 38
% of Short Float: 4.90%
Bunge Global SA (NYSE:BG) is a well-known food and agribusiness with operations throughout the world. The company serves the food, biofuel, and livestock industries by buying, processing, and selling agricultural commodities such as oilseeds, cereals, and vegetable oils. In order to increase its presence in major global markets, it also runs milling, sugar, bioenergy, and refined and specialty oils segments.
Bunge Global SA (NYSE:BG) reported financials for Q4, which ended December 31, 2024, revealing a drop in profitability. The company missed analyst forecasts of $2.30 with an adjusted EPS of $2.13, down from $3.70 the previous year. As a result of South American margin pressures and the uncertainties surrounding U.S. biofuel regulations, core business adjusted EBIT decreased 45.78% year-over-year to $548 million from $881 million. Nonetheless, some of the losses were lessened by robust merchandising performance and steady processing operations in Europe and Asia. Results in the milling segment were mixed, with South America’s poorer performance offsetting North America’s strength.
However, as of writing this article, Bunge Global SA (NYSE:BG) stock was under pressure from short sellers due to deteriorating biofuel margins, logistical issues in South America, and uncertainty in U.S. regulatory policies. Investors are concerned about the company’s lower-than-expected Q4 results and its 2025 EPS guidance of $7.75, which is lower than in recent years. Furthermore, geopolitical issues such as potential US-China trade disputes and tariff fears between the US and Canada have increased volatility, making it one of the worst agriculture stocks.
Bunge Global SA (NYSE:BG) has secured conditional Canadian permission for its $34 billion Viterra acquisition, which requires a $362 million investment and the disposal of six grain elevators. However, as of writing, its shares had declined 32.5% in the past 12 months, highlighting investor concerns about weak financials, South American margin pressures, and biofuel policy uncertainties. Short-selling has increased, putting Bunge among the weakest agricultural companies, with a bleak near-term prognosis.
7. FMC Corporation (NYSE:FMC)
Number of Hedge Fund Holders: 48
% of Short Float: 5.34%
FMC Corporation (NYSE:FMC) is an agricultural sciences firm that provides crop protection solutions to key global markets. The company creates and sells insecticides, herbicides, fungicides, and biologicals that improve crop yield and quality. It also offers seed treatment products and plant health solutions, which are distributed through its own sales teams, alliance partners, and independent distributors.
Despite sharing an EPS of $1.79 for the fourth quarter that ended December 31, 2024, which was above expectations of $1.65, FMC Corporation (NYSE:FMC) suffered considerable revenue pressure. Q4 sales fell to $1.22 billion, missing expectations, while full-year revenue fell 5%. Furthermore, channel inventory concerns in Latin America, Asia, and Eastern Europe, along with pricing pressure and rising generic competition for important products such as Rynaxypyr, created pressure on earnings.
However, FMC Corporation (NYSE:FMC) increased Q4 EBITDA by 33% year-on-year to $339 million, with a record Q4 EBITDA margin of 27.7%. Furthermore, the company outperformed its restructuring expectations, resulting in $165 million in net savings for 2024. However, these cost-cutting measures were overshadowed by increased inventory levels, notably in Brazil, prompting the corporation to rethink its market strategy and distribution methods.
Moreover, a 5% foreign exchange headwind further affected sales, while changing customer behavior and persistent destocking patterns posed additional short-term issues. Despite lowering gross debt by approximately $600 million and creating $614 million in free cash flow, the company’s prospects remain bleak.
Looking ahead, FMC Corporation (NYSE:FMC) predicts a rough 2025, calling it a “correction year.” The company predicts Q1 2025 revenue to fall 16% year-on-year, with Q1 EBITDA falling around 28%. Furthermore, weak growth predictions and ongoing financial challenges have driven investor sell-offs, causing FMC’s stock to fall 41.4% in the last year, making it one of the worst agriculture stocks.
