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.
6. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 45
% of Short Float: 5.35%
CF Industries Holdings, Inc. (NYSE:CF) is a prominent maker of hydrogen and nitrogen-based products for fertilizer, energy, and industrial applications in North America, Europe, and global markets. The company operates in several segments, producing ammonia, granular urea, and other nitrogen-based products for agricultural and industrial consumers.
Despite achieving a 100% ammonia utilization rate in the fourth quarter that ended December 31, 2024, CF Industries Holdings, Inc. (NYSE:CF) reported an adjusted EBITDA of $562 million, a 17.25% decrease from 2023. The company returned $1.9 billion to shareholders in dividends and buybacks, buying back 10% of its outstanding shares. However, growing capital expenses for the Blue Point ammonia project, as well as uncertainty surrounding long-term tax credits, have generated concerns about future financial allocation.
Furthermore, CF Industries Holdings, Inc. (NYSE:CF) is extending its carbon capture and sequestration programs, with key projects at its Donaldsonville complex scheduled to commence operations in 2025. The company also completed a feasibility assessment for a low-carbon ammonia plant in Blue Point, focusing on a final investment decision in Q1 2025. On the other hand, the project’s anticipated $4 billion cost, plus an extra $500 million for infrastructure, may limit returns unless ammonia prices continue to be above $450 per metric ton.
Additionally, regulatory concerns and natural gas price volatility are also possible risks. While the 45Q tax credits look to be solid, other incentives face policy uncertainties, and CF’s susceptibility to shifting gas prices may have an impact on profits. Despite increasing fertilizer demand and restricting global nitrogen supply, these financial and operational risks contributed to CF Industries’ over 16% year-to-date stock fall. This makes it one of the worst agriculture stocks.
5. CNH Industrial N.V. (NYSE:CNH)
Number of Hedge Fund Holders: 42
% of Short Float: 6.19%
CNH Industrial N.V. (NYSE:CNH) is a global manufacturer of agricultural and construction equipment that operates through three segments: Agriculture, Construction, and Financial Services. The company offers a diverse range of agricultural machinery, construction equipment, and precision agriculture solutions under well-known names like Case IH, New Holland, and STEYR.
Despite reaching $600 million in run-rate savings by the end of 2024 and lowering dealer inventory by over $700 million in the fourth quarter that ended December 31, 2024, CNH Industrial (NYSE:CNH) reported a large drop in sales. Industrial net sales fell 31% in the fourth quarter to $4.1 billion, contributing to a 23% decrease in full-year revenue to $17.1 billion. Furthermore, the adjusted EBIT margin declined to 8.2%, 370 basis points lower than the previous year, while the agriculture gross margin fell to 20.6% in Q4.
Moreover, the company indicated a negative free cash flow of $401 million for the fiscal year 2024, creating worries regarding liquidity management. Agricultural output hours declined 34% year-on-year in Q4, and the company intends to reduce production by another 15-20% by 2025. Further, CNH Industrial (NYSE:CNH) estimates worldwide industry demand to fall by 5-10% in 2025, with its agriculture division experiencing a 13-18% drop in net sales due to its reliance on North American cash crop equipment.
On the other hand, rising delinquencies in CNH’s Financial Services business heightened investor concerns, with portfolio delinquencies rising to 1.9% from 1.4% at the end of 2023. The business also decreased its earnings projection for 2025, expecting EPS of $0.65-$0.75, down from $1.05 in 2024.
Furthermore, the poor financial outlook and diminishing profitability have resulted in an increase in short interest as investors bet against the stock. Given these rising challenges, CNH Industrial (NYSE:CNH) has become a short sellers’ target, making it one of the worst agriculture stocks to invest in.
4. AGCO Corporation (NYSE:AGCO)
Number of Hedge Fund Holders: 16
% of Short Float: 7.27%
AGCO Corporation (NYSE:AGCO) is a global manufacturer and distributor of agricultural equipment, including tractors, grain storage solutions, harvesting equipment, and precision agriculture technologies. The company operates in several segments, offering machinery for large-scale farming, specialist agriculture, and livestock operations.
AGCO Corporation (NYSE:AGCO) reported a 24% loss in sales for the fourth quarter that ended December 31, 2024, compared to the fourth quarter of 2023, while revenue for the entire year of 2024 fell 19% year-on-year. The adjusted operating margin was 8.9% for the year, with adjusted EPS falling to $7.50. North American operating income fell by about $77 million, while operating margins shrank by 830 basis points. Furthermore, the company experienced pricing pressure, with a 1% price decrease in Q4, and generated $297 million in free cash flow, roughly $288 million less than in 2023. AGCO also recorded a $350 million goodwill impairment for its PTx Trimble joint venture, which impacted financials.
Despite industry constraints, AGCO Corporation (NYSE:AGCO) made strategic actions, such as divesting its Grain & Protein division and launching its TTX precision technology brand. It increased its PTx Trimble dealer network to over 1,000 while maintaining collaborations with more than 100 OEMs. The company also continued to streamline dealer inventory, whereas surplus stock remained a concern going into 2025.
Looking ahead, AGCO Corporation (NYSE:AGCO) forecasts Q1 2025 to be its lowest quarter, with sales expected to fall by about 32% year-on-year. Production reduction remains a top priority, with output expected to fall 35-40% from Q1 2024 levels. Furthermore, the company faces increasing challenges from a higher projected tax rate of 35-38% and foreign currency opposition, which is likely to cut revenues by $300 million. These hurdles, combined with diminishing profitability and continuing inventory issues, have encouraged short-selling activity, putting it among the worst agriculture stocks.
3. The Scotts Miracle-Gro Company (NYSE:SMG)
Number of Hedge Fund Holders: 33
% of Short Float: 7.53%
The Scotts Miracle-Gro Company (NYSE:SMG) is a leading supplier of lawn, garden, and hydroponic products in the United States, operating via three segments: Consumer, Hawthorne, and Other. While the company’s brand recognition remains strong, it has suffered from diminishing demand in its hydroponics industry and continuous financial challenges. It is among the worst agriculture stocks to monitor.
The Scotts Miracle-Gro Company (NYSE:SMG) reported a GAAP net loss of $69.5 million, or $1.21 per share, for the first quarter of fiscal year 2025, which ended December 28, 2024. This is an improvement over the previous year’s loss of $80.5 million but still reflects operational issues. Despite a modest gain in US consumer sales to $341 million, the Hawthorne segment, which specializes in hydroponics, had a 35% revenue decline to $52 million. The company also reported a large increase in SG&A spending, which rose 9% year-on-year, owing to increased media and technological investments. While adjusted EBITDA increased to $3.8 million from a deficit of $25.8 million, overall profitability remained under pressure.
In addition, The Scotts Miracle-Gro Company (NYSE:SMG) continues to have balance-sheet issues, with a leverage ratio of 4.52x net debt to adjusted EBITDA, which remains high despite a year-over-year decline. The company also paid $21.7 million in restructuring and impairment costs, which included staff severance pay and losses from its investment in RIV Capital. Furthermore, its seasonal cash flow utilization amounted to $475 million, adding to debt-related issues.
Despite cost-cutting strategies aimed at achieving $75 million in yearly supply chain reductions, the company’s reliance on strong spring and summer sales remains a concern. With macroeconomic uncertainties and unfavorable hydroponic market circumstances, The Scotts Miracle-Gro Company (NYSE:SMG) has struggled to maintain long-term profitability. These problems have dragged on investor confidence, resulting in a 20.2% year-to-date stock fall as of the writing of this piece, making it one of the worst-performing small-cap agriculture stocks in the industry.
2. Cal-Maine Foods, Inc. (NASDAQ:CALM)
Number of Hedge Fund Holders: 34
% of Short Float: 11.20%
Cal-Maine Foods, Inc. (NASDAQ:CALM) is the largest producer and distributor of fresh shell eggs in the United States, offering conventional, cage-free, organic, and specialty eggs under the trademarks Egg-Land’s Best, Land O’ Lakes, and Farmhouse Eggs. The company’s products are sold to national grocery chains, club shops, independent supermarkets, and food service distributors in different regions of the United States.
Cal-Maine Foods, Inc. (NASDAQ:CALM) shared strong earnings for Q2 FY25 ended November 30, 2024. Net sales grew to $954.7 million, nearly doubling from $523.2 million in the second quarter of FY24, thanks to higher egg prices and increasing sales volume. The company sold 329.8 million dozen eggs, up from 288.2 million in the prior year quarter, with specialty egg sales increasing by more than 25% to 120.2 million dozen. Net income rose to $219.1 million, or $4.47 per diluted share, from $17 million, or $0.35 per share, in Q2 FY24. Production expenses per dozen fell 8.5% year-on-year, driven by lower feed prices. However, greater costs for outside egg imports negated some cost savings as the company struggled to meet demand despite industry-wide supply constraints.
Despite significant earnings growth, Cal-Maine Foods, Inc. (NASDAQ:CALM)’s stock is down 11.53% year-to-date as of the writing of this article, reflecting widespread volatility among the worst-performing small-cap agriculture stocks. The company is still dealing with uncertainties as a result of avian influenza, which caused the depopulation of 38.4 million commercial layer hens in 2024, affecting supply levels and driving price swings. Concerns about potential future outbreaks and their impact on production have contributed to a larger short percentage of float as investors remain wary of the industry’s stability.
Looking ahead, Cal-Maine Foods, Inc. (NASDAQ:CALM) is expanding its production capacity, with $60 million set aside for new cage-free facilities that will house 1.1 million more hens by late summer 2025. The company is also investing in its egg products segment, which will improve processing capabilities for liquid egg products with a longer shelf life. While industry-wide supply restrictions exist, the company’s size and strategic acquisitions enable it to navigate market changes while aiming for long-term growth despite immediate hurdles.
1. Vital Farms, Inc. (NASDAQ:VITL)
Number of Hedge Fund Holders: 30
% of Short Float: 20.68%
Vital Farms, Inc. (NASDAQ:VITL) is a U.S.-based food firm that specializes in pasture-raised shell eggs, butter, and associated goods. The company acquires its products from more than 425 family farms and distributes them to retailers and food service operators. It is continuing to expand its production capacity and supply chain to meet rising demand, establishing itself as a pioneer in ethical food manufacturing.
Vital Farms, Inc. (NASDAQ:VITL) posted solid financial performance for the fourth quarter that ended December 29, 2024, exceeding expectations. The company reported an EPS of $0.23, which exceeded the projected $0.15. Net revenue for the full fiscal year 2024 was $606.3 million, a 28.5% increase year-over-year. Higher sales volumes, brand expansion, and an increase in the number of family farms all contributed to growth. Additionally, butter sales increased by 11% year-on-year, contributing to overall revenue growth. However, supply shortages damaged year-end inventory, resulting in a predicted temporary slowdown in early 2025 growth.
As of the writing of this article, Vital Farms, Inc. (NASDAQ:VITL) stock fell by nearly 16% year to date due to an issue with its accounting practices overshadowing better-than-expected earnings. According to Bloomberg, the company discovered anomalies in order tracking and invoicing, which had an impact on reported revenue and raised questions about financial integrity. While it has generally avoided the brunt of the avian flu’s effects, these reporting flaws have weighed on investor confidence. The stock’s slide reflects increased volatility in some of the worst-performing small-cap agricultural equities, underscoring investor concern in the sector.
Despite industry-wide issues such as avian influenza, which has reduced egg supply, Vital Farms, Inc. (NASDAQ:VITL) is taking proactive initiatives to manage risks. It wants to develop its egg grading and packing facilities in Missouri, increasing production capacity by 30% by the end of 2025. The company is also recruiting new farms, with 125 more expected to be completely operational by the fourth quarter of 2025. These developments will increase supply chain resilience and help satisfy rising customer demand.
Overall, Vital Farms, Inc. (NASDAQ:VITL) ranks first on our list of the Worst Small Cap Agriculture Stocks to Buy. While we acknowledge the potential of VITL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VITL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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