We recently compiled a list of the 13 Best Farmland and Agriculture Stocks To Invest In According to Hedge Funds. In this article, we are going to take a look at where Corteva Inc. (NYSE:CTVA) stands against the other farmland and agriculture stocks.
Revolutionizing Agriculture: Technology in Modern Farming
The farmland and agriculture sector is crucial for global food security and economic stability. As the world population continues to grow, the demand for food increases, necessitating innovative practices in agriculture and farming. Recent trends indicate a significant shift towards technology-driven agriculture, which aims to enhance productivity while promoting sustainability.
In the first quarter of 2024, McKinsey surveyed around 4,400 farmers across Europe, India, Latin America, and North America to understand the factors influencing their profitability and technology adoption. The firm conducted a similar survey in 2022. The findings indicate that while farmers are increasingly adopting technology, the pace remains slow, with a three-percentage-point rise since 2022 in those using or willing to use at least one new digital tool to improve operations.
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North American farmers lead in technology adoption. In the US, 61% of farmers are using or willing to adopt digital agronomy. Additionally, 51% are using or willing to adopt precision agriculture hardware, and 38% are adopting remote-sensing technologies. Latin America showed the most significant growth in technology adoption, with a remarkable ten-percentage-point increase from 2022 to 2024. Farmers around the world are more inclined to adopt new technologies that directly improve operations. According to the data, digital agronomy and precision agriculture hardware are the most popular technologies around the world.
The survey highlights that in the US, larger farms are 45% more likely to adopt agricultural technology compared to smaller farms. This trend can be attributed to the greater scale needed for a favorable return on investment (ROI) in agtech. Despite the challenges posed by rising input costs and extreme weather conditions, farmers are looking towards sustainable practices and innovative technologies to enhance their productivity and profitability. Organizations that provide technology and services have a unique opportunity to cater to farmers’ diverse needs across different regions.
Our Methodology
To compile our list of the 13 best farmland and agriculture stocks to invest in according to hedge funds, we used the Finviz and Yahoo stock screeners to find the largest farmland and agriculture companies. We also reviewed our own rankings and consulted various online resources.
From an initial pool of more than 30 farmland and agriculture stocks, we focused on the top 13 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds. The 13 best farmland and agriculture stocks to invest in are ranked in ascending order based on the number of hedge funds holding stakes in them, as of Q3 2024.
Why do we care about what hedge funds do? 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 farmer in overalls, harvesting a golden cornfield with a tractor in the background.
Corteva Inc. (NYSE:CTVA)
Number of Hedge Fund Holders: 33
Corteva Inc. (NYSE:CTVA) is a pure-play agriculture company that provides farmers around the world with a comprehensive range of seed and crop protection products and services. The company is focused on helping farmers maximize productivity to enhance yield and profitability. With a strong portfolio of well-known brands and an innovative product pipeline, Corteva Inc. (NYSE:CTVA) is well-positioned for growth in the agriculture sector.
In its third-quarter results for 2024, the company reported a 10% decrease in net sales compared to the previous year. However, Corteva Inc. (NYSE:CTVA) saw a 3% increase in volume, driven by an 11% rise in Crop Protection volume, particularly in Latin America and North America on demand for new products and spinosyns. This growth was partly offset by lower seed volumes due to reduced corn planting in Argentina. Despite facing an operating loss in Q3, management remains optimistic, expecting to achieve over $400 million in savings from its controllables this year.
Corteva Inc. (NYSE:CTVA) is focusing on differentiated and new technologies that warrant premium pricing. In 2025, the company plans to introduce several hundred new hybrids and varieties globally, which will help farmers improve yields and productivity. Additionally, on a year-to-date basis, Corteva Inc. (NYSE:CTVA) has received over 150 crop protection registration approvals across nearly 50 countries, indicating robust demand for its innovative solutions.
Corteva Inc. (NYSE:CTVA) announced a significant breakthrough on November 18, 2024, with the introduction of a proprietary non-GMO hybrid wheat technology. This innovation could increase yield potential by 10% while using the same amount of land resources and offers improved drought resistance, yielding up to 20% more in water-stressed conditions. Such advancements are crucial for global food security and position Corteva Inc. (NYSE:CTVA) as a leader in addressing agricultural challenges. These strategic initiatives and advancements make CTVA a compelling investment opportunity in the agriculture sector, as it continues to drive innovation and support farmers’ needs effectively. Corteva Inc. (NYSE:CTVA) ranks among the best agriculture stocks to buy.
Overall, CTVA ranks 9th on our list of the best farmland and agriculture stocks to invest in according to hedge funds. While we acknowledge the potential of CTVA 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 time frame. If you are looking for an AI stock that is more promising than CTVA 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.