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 CF Industries Holdings, Inc. (NYSE:CF) 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).
A close-up of a farmer standing with his tractor in a lush field of crops.
CF Industries Holdings, Inc. (NYSE:CF)
Market Cap: $16.05 billion
CF Industries Holdings, Inc. (NYSE:CF) is a leading manufacturer of nitrogen and hydrogen products. The company owns and operates several plants to serve the needs of its agricultural and industrial customers. Its segments include Ammonia, Granular Urea, UAN, AN, and others.
On January 13, Piper Sandler upgraded CF Industries Holdings, Inc. (NYSE:CF)’s rating from Underweight to Overweight and raised the stock’s price target from $79 to $105. The investment banking firm’s revision was motivated by the recent WASDE report, which hinted at the likelihood of an increase in grain prices. Analysts believe there is a strong case for improved price projections for nutrients amid the optimistic outlook for grain prices.
CF Industries Holdings, Inc. (NYSE:CF) is also making strategic investments aimed at sustainable growth. In July 2024, the company announced to invest $100 million in a carbon capture and sequestration (CCS) project in its complex in Mississippi, which is expected to reduce carbon emissions from the facility by up to 500,000 metric tons per annum. Earlier last year in April, CF Industries Holdings, Inc. (NYSE:CF) also announced a joint development agreement with Japanese energy company, JERA Co., Inc., to explore the possibility of building a 1.4 million metric ton capacity low-carbon ammonia plant at its Blue Point Complex in Louisiana.
On October 30, the company reported financial results for the first nine months of 2024. Net sales stood at $4.41 billion, down from $5.06 billion during the corresponding period in 2023. A key factor behind the dip was the decline in average selling prices compared to last year. However, sales volume remained stable and was helped by higher ammonia sales from the recently acquired Waggaman ammonia production facility.
CF Industries Holdings, Inc. (NYSE:CF) remains an attractive stock for investors due to its commitment to shareholder returns. During the first nine months of 2024, it returned $1.4 billion to shareholders through dividends and share repurchases. As a result, there has been an improvement in hedge fund sentiment. According to Insider Monkey’s database for Q3 2024, 39 hedge funds held a stake in the company, up from 36 at the end of the second quarter. It is one of the best agriculture stocks to buy in 2025.
Overall CF ranks 7th on our list of the biggest agriculture stocks in 2025. While we acknowledge the potential of CF 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 CF 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.
