Agriculture shares: Popular companies to invest in

Discover popular stocks plus considerations when investing in the agriculture industry.

Top agriculture stocks See top stocks
Ways to invest in agriculture Learn more

Investing in agriculture might not be the first thing that comes to mind, but it plays a vital role in our everyday lives.

It’s the industry responsible for the food on our tables, whether crops or livestock. Investing in agriculture doesn’t necessarily mean investing in actual farms. There are various aspects of the farming industry to consider, such as manufacturing companies that produce the necessary materials, equipment providers, and even the farming companies themselves.

However, it’s important to understand the risks involved, including the unpredictable British weather, which can significantly impact profits. If you’re interested in owning a piece of American farmland, you’re in good company! Bill Gates, the billionaire founder of Microsoft, has invested heavily in farmland. Fortunately, you don’t have to navigate the complexities of direct ownership.

Below, we’ll give you 3 stocks you can buy to get a slice of the action. So, put on your Wellington boots and join us as we plough through the risks and rewards of investing in agricultural stocks!

UK agriculture stocks

If you want to invest in agriculture stocks a little closer to home, there are some UK agriculture stocks that you can invest in, such as:

Investing in global agriculture stocks from the UK

We’ve listed some examples of agriculture stocks with more information about them, and you can see an A-Z list below if you’ve got any in mind.

AppHarvest logo

AppHarvest (APPH.US)

App Harvest is a farming company that’s built some of the world’s largest indoor farms in Appalachia. It’s a mix of agriculture and technology to improve access to nutritious food and sustainable farming.

Compare brokers to buy AppHarvest shares

Scotts Miracle-Gro logo

Scotts Miracle-Gro (SMG.US)

Scotts Miracle-Gro manufactures and sells lawn, garden and pest control products. Scotts Miracle-Gro owns 27 brands worldwide.

Compare brokers to buy Scotts Miracle-Gro
shares

Dole logo

Dole (DOLE.US)

Dole is a world-leading fresh produce provider. It operates in 30 countries worldwide and grows, sources and packs 300 lines of fresh produce. In July 2021, Dole joined forces with Total Produce to create Dole plc.

Compare brokers to buy Dole shares

How to invest in agriculture stocks

  1. Choose stocks to invest in. You can check out some agriculture stocks above and find out more about them.
  2. Choose an investment platform. You’ll need one that lets you invest in the stock exchange that your chosen stocks are listed on.
  3. Sign up and fund your account. You might need to wait for your account to be verified and for your funds to hit the account before you can begin.
  4. Find your chosen stock. You can search by name or ticker.
  5. Review and buy. It’s as easy as that!

Why invest in agriculture stocks?

Agriculture stocks can be rewarding — you’re helping companies put food on the table, which means you can feel responsible for bringing home the bacon. There are also loads of different angles that you can invest in.

Agriculture stocks can have dry spells, so you can’t expect your investments to grow consistently all of the time. Check out some of the risks involved when you invest in agriculture stocks before you count your chickens.

The risks of agriculture stocks

Investing in agriculture isn’t all cash crops. There are risks involved.

For example, crops could become damaged if exposed to disease, fire or pests. The weather could reduce the yields, which can be unpredictable here in the UK.

You can protect yourself from these risks in some ways, such as by diversifying your portfolio geographically and by commodity.

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

How to own a piece of American farmland

Mark Tovey

Money expert Mark Tovey answers

Interested in owning American farmland? You can join the likes of Bill Gates, who has invested heavily in the asset class. 3 options to consider are the following stocks: Farmland Partners, Gladstone Land and Limoneira.

Farmland Partners. This internally managed real estate investment trust (REIT) owns and manages high-quality farmland across North America. With approximately 163,700 acres of owned farmland and 31,000 acres of managed farmland, it offers diverse crops and has over 100 tenants.

Gladstone Land. This competing REIT owns 169 farms totalling approximately 116,000 acres in 15 states. Unlike Farmland Partners, it focuses on ‘permanent crops’ – those planted once and lasting up to 25 years. Examples include almonds and avocados.

Limoneira. While not a REIT, Limoneira is an agribusiness and real estate development company with roughly 11,100 acres of land. It is one of California’s oldest citrus growers and has crops not only in the US state but also in Chile and Argentina.

By investing in these options, you can own a piece of American farmland without the complexities of direct ownership. Whether you prefer primary crops, specialty crops, or citrus fruits, these opportunities provide access to diverse farmland portfolios.

Bottom line

Agriculture stocks offer a unique opportunity to diversify your portfolio and contribute to the vital industry that puts food on our tables. With various angles to invest in, it allows you to support companies responsible for feeding the world.

However, it’s important to be aware of the risks involved when investing in agriculture stocks. Crop damage from disease, fire or pests can affect yields, and unpredictable weather, particularly in the UK, can impact agricultural productivity. To mitigate these risks, consider diversifying your portfolio geographically and by commodity. Investing in agriculture stocks across different regions and crops can help balance the potential negative impacts of localised issues.

Additionally, it’s worth noting that the global landscape of agriculture is influenced by factors such as the decreasing availability of farmland, changes in agricultural productivity and geopolitical events like the Russian war in Ukraine.

Finder survey: If a pension or other investment performed well but included companies in the following industries or countries, which would cause you to feel guilty?

Response
A Russian company3.74%
A company still operating in Russia3.23%
Weapons manufacturing2.94%
Tobacco2.33%
I wouldn't feel guilty2.04%
Cannabis1.97%
Meat farming1.24%
Oil1.12%
None of the above0.87%
Banks0.67%
Vaccine production0.63%
Source: Finder survey by Censuswide of Brits, April 2022

Frequently asked questions

Browse all agriculture stock guides

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