We recently published a list of 14 Best Farmland and Agriculture Stocks to Buy Now. In this article, we are going to take a look at where Corteva, Inc. (NYSE:CTVA) stands against other best farmland and agriculture stocks to buy now.
At the beginning of March, the White House announced the imposition of 25% tariffs on goods from Mexico and Canada and additional 10% tariffs on China. While President Trump granted a one-month tariff delay for automakers and paused the same for certain Mexican and Canadian goods until April 2, he announced in an interview with Fox News that tariffs “could go up” with time.
Since tariffs on Chinese goods weren’t a part of the exemptions, China imposed retaliatory tariffs on the US, particularly targeting US agricultural goods. Specifically, a 10% tariff was imposed on American soybeans, while corn was hit with an additional 15% charge. CNBC reported that China is prepared to fight “any type of war” with the United States. The news channel reported that the Chinese Embassy in the US reported in a post on X:
“If war is what the U.S. wants, be it a tariff war, a trade war, or any other type of war, we’re ready to fight till the end.”
A Chinese foreign ministry spokesperson also labeled the American fentanyl-related explanation for imposing tariffs a “flimsy excuse.”
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On March 4, Landus Cooperative CEO, Matt Carstens, appeared on CNBC’s ‘The Exchange’ to talk about how tariffs could potentially slash the prices of various agricultural products and discuss the long-term benefits of these tariffs on agricultural markets. He said that a significant need to find markets exists for American farmers. Corn makes up about 20% of any given year that the US exports to other countries, while soybean reaches up to as much as 50% of America’s production going to other markets. This creates an interesting dynamic that puts considerable pressure on the ongoing circumstances.
Carstens was of the view that the American farmers hopefully understand that the government is playing the long game here and working on something that would hopefully be significantly profitable for America in the long run. That translates to opportunities for farmers to get the most for commodities, something that they need to a great extent at the present. However, in the short term, we have to deal with these changes in the market.
In other words, Carstens said that the scenario could benefit consumers because the US is flooded with the said agricultural product. Since it is comparatively more expensive to export these products, American consumers get cheaper soybeans and corn, but the farmers potentially lose their export business. There is, thus, a balance that comes into play. The market will certainly see price decreases as export slows and supply increases. However, the farmers are dealing with prices that continue to escalate amid other costs.
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 30 farmland and agriculture stocks and chose the top 14 most popular stocks among hedge funds. The list is ordered in ascending order of the number of hedge funds as of fiscal Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database.
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).
Number of Hedge Fund Holders: 45
Corteva, Inc. (NYSE:CTVA) provides seed and crop protection solutions, focusing on the agriculture industry and food supply. Its operations are divided into the Seed and Crop Protection segment. The Seed segment develops and supplies advanced germplasm and traits, producing yield for farms. The Crop Protection segment manages the global agricultural input industry, offering products for insects, weeds, pests, and disease protection.
Corteva, Inc. (NYSE:CTVA) has a positive outlook for 2025, reflecting positive momentum and anticipated continued record crop demand. It has guided for EBITDA of $3.7 billion at midpoint, reflecting a 10% increase over 2024. EBITDA margins are projected to grow between 100 and 150 basis points. Corteva, Inc. (NYSE:CTVA) also attained progress in slashing royalty expenses, taking the net royalty expense down from $800 million in 2019 to approximately $200 million. The company has plans to attain royalty neutrality by 2028.
On March 31, Argus upgraded Corteva, Inc. (NYSE:CTVA) to Buy from Hold with a $69 price target. The analyst said that farmers are increasingly inclined to invest in technology that augments yields, a trend benefiting Corteva, Inc.’s (NYSE:CTVA) volume. Its management anticipates strong demand to support gains. The analyst supported the rating with the company’s stabilizing prices and improving fundamentals.
Overall, CTVA ranks 3rd on our list of best farmland and agriculture stocks to buy now. While we acknowledge the potential for CTVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CTVA but 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.
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