Jim Cramer on Farmland Partners Inc. (FPI): ‘I Kind Of Like The Idea As A Spec’

We recently published an article titled Jim Cramer’s Latest Lightning Round: 8 Stocks in Focus. In this article, we are going to take a look at where Farmland Partners Inc. (NYSE:FPI) stands against the other stocks.

On Friday, Jim Cramer, host of Mad Money, addressed the current state of the stock market, giving a cautious recommendation to investors. He gave his blessing to buy stocks, but only to those who can tolerate the potential pain that comes with it. His advice was clear: proceed slowly. He warned against rushing in, acknowledging the market’s current volatility.

“How can markets be so out of control? And they are, well, because frankly, we are in a very emotional market. It’s a market that’s torn between buyers who see terrific opportunities because the market’s down and the Walmart White House where the president keeps trying to give you every day lower prices on stocks almost every time he talks.”

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Cramer expressed frustration with the unpredictability of the market, noting that pain seems to be a constant factor. He predicted that this pain might continue, especially as new developments around trade policies emerge over the weekend. Tomorrow, according to Cramer, would likely bring another round of surprises regarding tariffs, contributing to the volatile shifts in market positions that are particularly noticeable on Fridays. He emphasized that this fear-driven behavior is rooted in the uncertainty that permeates the market.

Highlighting the larger issue, Cramer remarked that individual earnings are increasingly overshadowed by the president’s inconsistent actions on tariffs, whether it’s imposing or suspending them without warning.

“I believe the stock market is still the greatest engine of wealth creation in history, but I often feel it cross purposes with the president now.”

He argued that while Wall Street generally dislikes tariffs, what it despises even more is uncertainty, a sentiment that has been intensifying under the current administration. In the midst of this chaos, Cramer stressed that individual stocks are not mere pawns in a larger political game, even if it sometimes feels that way. He added:

“They’re not play things though and you can’t think of them that way or else you’re gonna miss some tremendous opportunities.”

Our Methodology

For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 7. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.

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).

550 acre farm estate in the US showcasing the real estate owned by the company.

Farmland Partners Inc. (NYSE:FPI)

Number of Hedge Fund Holders: 7

During the episode, Cramer commented on Farmland Partners Inc. (NYSE:FPI) and said:

“Novel, novel idea. I kind of like the idea as a spec because there, we know that we don’t have enough farmland so I think, you know what? I’m going to bless it… Thought a lot about since, since AGCO, which was an amazing, amazing bottom call that we got from AGCO. We had them on recently.”

Farmland Partners Inc. (NYSE:FPI) is a real estate company that is managed internally, focusing on owning and acquiring premium farmland across North America, as well as providing loans to farmers that are backed by farm real estate. Palm Valley Capital Fund stated the following regarding Farmland Partners Inc. (NYSE:FPI) in its Q4 2024 investor letter:

“The position with the greatest positive impact on Fund performance in Q4 (more than 10 basis points) was Farmland Partners Inc. (NYSE:FPI). The company completed over $300 million in sales of farmland in the fourth quarter and recognized a 17% gain over book value. Farmland then announced a large $1.15 per share special dividend in December. Recent transactions have lent support to carrying values of the company’s properties, which have benefited from appreciating farmland.”

Overall FPI ranks 8th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of FPI 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 FPI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.