We recently compiled a list of the 15 Biggest Agriculture Stocks in 2025. In this article, we are going to take a look at where Bunge Global SA (NYSE:BG) stands against the other agriculture stocks. We also discuss the increase in technology adoption in the industry to improve operations in agriculture and farming.
The agriculture sector is crucial for food security and economic stability. It extends beyond farm businesses to include other farm-related industries in the United States. According to the Bureau of Economic Analysis, agriculture, food, and related industries contributed over $1.5 trillion to the American economy in 2023, representing 5.5% of the GDP.
The output of farm businesses stood at $222.3 billion, or 0.8% of the GDP. However, economists believe agriculture’s overall contribution is much higher than this figure because numerous players in various sectors rely on agricultural inputs and contribute added value to the economy.
READ ALSO: 13 Best Farmland and Agriculture Stocks To Invest In According to Hedge Funds and 8 Best Fertilizer Stocks To Buy Now.
According to McKinsey, the global food and agribusiness industry is valued at over $5 trillion, and given current trends, this number is expected to rise further. By 2050, caloric demand is projected to grow by 70%, while crop demand for human consumption and animal feed is forecast to soar by at least 100%.
The surge in population worldwide continues to lead to an increased demand for food, necessitating innovative agricultural practices. Recent trends have highlighted a shift toward the adoption of technology in agriculture and farming, which aims to enhance sustainable production.
A 2024 survey by a leading consultancy firm has revealed a growing trend among farmers for technology adoption, with a 3 percent increase since 2022 in farmers who are using or are willing to adopt digital technology to improve operations. North America continues to lead agricultural technology adoption, while Latin America experienced the fastest rate of growth – 10% – between 2022 and 2024.
The United States has the highest rate of technology adoption, with 61% of the farmers using or willing to adopt digital agronomy, and 51% for precision agriculture hardware, while the adoption rate for remote-sensing technologies among American farmers stood at 38%. More than two-thirds of farmers were using or willing to adapt to farm management software. The study also highlighted that large farms were 45% more likely to adopt agriculture technology than smaller farms, citing scale factors to generate positive ROI.
The growing focus on sustainable practices and innovative technologies among farmers to enhance their productivity not only bodes well for the future of the agriculture industry but also presents an opportunity for organizations that provide these technologies to cater to farmers’ diverse needs across different regions.
Methodology
For this article, we sifted through screeners to get a pool of stocks in the agricultural inputs and farm products industries. We also referred to our previous articles on the industry to further enrich our list of stocks. From there, we picked the top 15 companies with the highest market cap, as of the close of the day on Friday, January 31, 2025. The 15 biggest agriculture stocks are ranked in ascending order of market cap.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Aerial view of an orchard of different fruits, representing the abundance of the agribusiness.
Bunge Global SA (NYSE:BG)
Market Cap: $10.63 billion
Bunge Global SA (NYSE:BG) is a global agribusiness and food company. It operates through four segments: Agribusiness, Milling, Refined and Specialty Oils, and Sugar and Bioenergy. The company specializes in oilseed processing and is a leading producer of specialty plant-based oils and fats. The agribusiness segment has operations and assets located in North America, South America, Europe, and Asia-Pacific.
In January this year, Bunge Global SA (NYSE:BG) received approval from the Government of Canada for its acquisition of Viterra Inc. The deal was set to be completed in mid-2024 but was pushed back due to delays in regulatory approvals. The Canadian approval has brought the company near completion of the regulatory processes, which are now expected to close in early 2025. The acquisition is expected to create a $25 billion powerhouse to rival some of the world’s leading agricultural businesses.
However, the approval comes with some conditions. Bunge Global SA (NYSE:BG) will have to divest six grain elevators in Western Canada and invest at least C$520 million in the country over the next five years. There will also be controls placed on the company’s minority ownership stake in G3.
On February 5, Bunge Global SA (NYSE:BG) announced financial results for the fourth quarter of fiscal 2024. The company fell short of profit expectations for the year, as weak oilseed processing margins slashed Q4 earnings for its agribusiness segment. Bunge has warned that earnings in 2025 could drop to a six-year low amid ongoing trade tensions and a drag in biofuel policy uncertainty.
Despite ongoing challenges with trade disruptions and uncertainty around biofuels, the overall prospects for the company look encouraging and have been further strengthened with Canada’s approval to acquire Viterra. Wall Street analysts are bullish on the stock, with a consensus Buy rating, and an average share price upside potential of 59%, making Bunge Global SA (NYSE:BG) one of the best agriculture stocks to buy.
Overall BG ranks 9th on our list of the biggest agriculture stocks in 2025. While we acknowledge the potential of BG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
