The agricultural industry is a necessity for life and the basis of our global food chain. There’s a good chance that companies that succeed in this sector will be around for the long term.
Canada is a country that is incredibly resource-rich when it comes to agriculture. It is the fifth largest exporter of food in the world, sending it to over 200 countries.
It is also the fifth-largest producer of wheat in the world. Wheat is Canada’s top agricultural export, accounting for over 80% of exported cereals.
There are numerous types of agricultural companies that trade on the Toronto Stock Exchange (TSX). These include actual harvesting companies and those that produce fertilizers, agricultural equipment, and even packaging foods.
In this article, I will discuss the 7 top Canadian agriculture stocks for September 2024.
Best Agriculture Stocks in Canada
Here are the 7 top Canadian agriculture stocks I will be discussing:
- Nutrien Ltd (TSE:NTR)
- Stantec, Inc (TSE:STN)
- AG Growth International Inc (TSE:AFN)
- Verde Agritech PLC (TSE:NPK)
- CubicFarms Systems Corp (TSE:CUB)
- Ceres Global AG Corp (TSE:CRP)
- SunOpta Inc (TSE:SOY)
Facts and figures are accurate as of August 2022.
Top Agriculture Stocks To Buy in Canada
1. Nutrien Ltd (TSE:NTR)
Here are some key facts for NTR:
- Market Cap: $63.54 billion
- Sector: Potash and Fertilizers
- PE Ratio: 7.47
- 52-week Trading Range: $73.57 – $147.93
- Dividend Yield: 2.09%
Nutrien Ltd is a Saskatoon, Saskatchewan-based company that is the largest producer of potash and nitrogen fertilizers in the world. NTR trades on the Toronto Stock Exchange and is a component of the S&P/TSX 60 index.
It is perhaps one of the most well-known agricultural stocks on any stock market and is one of the largest companies in Canada. The company was founded in 2018 following a merger between Agrium and PotashCorp.
After establishing the US as its single largest customer, Nutrien is also expanding its retail footprint into Brazil and other markets.
NTR pays an annualized dividend yield of 2.09% every quarter. This year Nutrien anticipates $6 billion in shareholder returns in the form of dividends and share buybacks.
2. Stantec Ltd (TSE:STN)
Here are some key facts for STN:
- Market Cap: $7.19 billion
- Sector: Consulting
- PE Ratio: 37.22
- 52-week Trading Range: $53.12 – $73.10
- Dividend Yield: 1.11%
Stantech Ltd is a design and consulting firm that deals with environmental services, engineering, and architecture. The company is based out of Edmonton, Alberta, and the stock is dual-listed on the TSX and the NYSE.
It is a global leader in developing wastewater treatment facilities that provide clean and fresh drinking water for the population.
A total of 20% of its first-quarter revenues were from ecosystem restoration and other environmental services. It also helps in setting up and establishing renewable energy infrastructure.
3. AG Growth International Inc (TSE:AFN)
Here are some key facts for AFN:
- Market Cap: $745 million
- Sector: Global Food Infrastructure
- PE Ratio: 68.18
- 52-week Trading Range: $25.85 – $44.24
- Dividend Yield: 1.52%
AG Growth International is a Winnipeg-based company founded in 1996 and trades on the TSX.
It is a leading supplier of global agricultural infrastructure and operates in North America, South America, India, and Europe. This infrastructure includes both physical equipment and digital solutions for farmers.
The digital technology platform incorporates Internet of Things technology in a full end-to-end platform. This platform allows farmers to run data analysis on crops, prevent degradation in grain quality, and even provides an online grain sales marketplace.
4. Verde Agritech PLC (TSE:NPK)
Here are some key facts about NPK:
- Market Cap: $458 million
- Sector: Fertilizers
- PE Ratio: 55.11
- 52-week Trading Range: $1.09 – $11.54
- Dividend Yield: N/A
Verde Agritech is a UK-based fertilizer company that is headquartered in Brazil. It trades on the Toronto Stock Exchange as a foreign company.
This company makes specialty and premium fertilizers. It has several main brands, including K Forte, which is a potassium mineral fertilizer and BaKS, which is a customizable fertilizer that has potassium, potash, sulphur, and boron, amongst other ingredients.
It is still a speculative and early-stage company, but Verde still recently reported a 362% year-over-year revenue growth in the latest quarter.
5. CubicFarm Systems Corp (TSE:CUB)
Here are some key facts for CUB:
- Market Cap: $72.38 million
- Sector: Agricultural Technology
- PE Ratio: N/A
- 52-week Trading Range: $0.34 – $1.70
- Dividend Yield: N/A
CubicFarm is a Vancouver-based nano-cap agricultural technology firm that was established in 2015.
This company deals in Ag-Tech and vertical indoor farming methods. With the world already using 100% of its agricultural land and water, companies like CubicFarm are creating indoor solutions to continue crop production year-round.
Not only does this technology take up less land, but it also allows farmers to grow any crop anywhere in the world, 365 days per year. CubicFarm also has solutions for indoor livestock farming as well.
It claims its system uses 95% less water, zero pesticides, less waste, a shortened supply chain, and automation to remove labour costs.
6. Ceres Global AG Corp (TSE:CRP)
Here are some key facts for CRP:
- Market Cap: $113 million
- Sector: Agricultural Infrastructure
- PE Ratio: 3.67
- 52-week Trading Range: $2.71 – $5.98
- Dividend Yield: N/A
Ceres is a Minnesota-based agricultural infrastructure company established in 2007 and trades on the TSX.
This company operates directly in the global agricultural supply chain by sourcing, storing, and transporting commodities and raw materials for companies worldwide.
It has a portfolio of global partners that use Ceres’ logistics centers and services to continue the smooth operation of the supply chains.
7. SunOpta Inc (TSE:SOY)
Here are some key facts for SOY:
- Market Cap: $1.48 billion
- Sector: Organic and Non-GMO Food Products
- PE Ratio: N/A
- 52-week Trading Range: $5.44 – $14.50
- Dividend Yield: N/A
SunOpta is a Minnesota-based organic food and mineral company that was founded in Canada back in 1973. The stock is dual-listed on both the TSX and the NASDAQ exchanges.
The company focuses on health, organic, and non-GMO food products that it sells to consumers. These include everything from nut milk to fruit bars to frozen fruit to soups and broths.
Some of SunOpta’s brands include SOWN, Arbor, Sunrise Growers, and Sunrich.
What Are Agriculture Stocks?
Agriculture stocks that trade on the TSX are companies that operate in some aspect of the broader Canadian agricultural industry.
Most of the time, investors associate this industry with harvesters and farming, but there are plenty of other sub-sectors. These include pesticides, food processing, plant-based biotech, and meat production.
Canadian agriculture stocks are essential to the survival of the human race. Many of these companies provide major cash flow and pay generous dividend yields to shareholders.
How To Buy Canadian Agriculture Stocks in 2024
The best part about investing in Canadian agriculture stocks is that you can buy them on any Canadian brokerage. Personally, I like to look at some of Canada’s best discount brokerages to save on commission fees. Here are two of my favourites:
Questrade
Questrade is Canada’s oldest and largest discount brokerage. Follow these steps to sign up for an account to buy agriculture stocks today.
- Sign up for a free account at Questrade.com.
- Add funds directly to your Questrade brokerage account.
- Find the Canadian agriculture stock you want to buy by searching for its ticker symbol.
- Specify the number of shares you wish to buy.
- Buy the stock.
Questrade
Trade stocks, ETFs, options, FX, bonds, CFDs, mutual funds, etc.
Get $50 trade credit with $250 funding
Low and competitive trading fees
No quarterly inactivity fees
Access to advanced tools and trading data
Top platform for advanced traders
Transfer fees waived
Wealthsimple Trade
Wealthsimple is a popular Canadian financial platform widely known for its zero-commission trading. Here are the steps to get started on Wealthsimple Trade.
- Sign up for a free account at Wealthsimple.com.
- Add funds to your Wealthsimple Trade account.
- Check out Canadian agriculture stocks on the TSX.
- Specify the stock and the number of shares you wish to buy.
- Buy the stock.
Wealthsimple Trade
Trade stocks, ETFs, and options
Excellent trading platform for beginners
Access to various products and accounts
Transfer fees waived up to $150
Are Farming Stocks a Good Investment?
Farming stocks are extremely underrated by investors and often overlooked as part of a diversified and balanced portfolio.
The Canadian agriculture industry is part of the backbone of the global food chain. These companies play a large role in providing food to countries worldwide.
Agriculture stocks are generally stable, and some will pay a generous dividend yield as well, which is a nice bonus.
That said, food is a commodity, and the commodities market is often cyclical. The price of these stocks will also depend on the price of the underlying commodity.
This article is not meant to be financial advice, so please do your own research. I wrote this article to provide Canadian investors with an introduction to the agriculture industry.
Downsides of Investing in Agriculture Stocks
As mentioned, agriculture is a commodity-based industry, so the prices of the stocks are dependent on the prices of foods.
Some agriculture stocks are cyclical and will see stronger quarters as well as weaker ones.
While investors may value the agriculture industry, commodity stocks often do not provide long-term capital growth.
What are the Top Agriculture ETFs?
Canadian investors will have to settle for the only agriculture ETF that trades on the TSX:
- iShares Global Agriculture Index ETF (TSE:COW)
There are several that trade on the US exchanges, but Canadian investors will have to buy these in US dollars. A few examples include:
- IShares MSCI Global Agriculture Producers ETF (NYSEARCA:VEGI)
- First Trust Indxx Global Agriculture ETF (NASDAQ:FTAG)
- Invesco DB Agriculture Fund (NYSEARCA:DBA)
Conclusion
Canadian agriculture stocks are an excellent value sector that can add stability to your diversified stock portfolio.
This industry includes investing in companies that harvest food, produce processed food, provide infrastructure, or create fertilizers.
These stocks are available on any Canadian brokerage, but to save trading fees, check them out on discount brokerages like Questrade, Qtrade or Wealthsimple Trade.
FAQs
There are plenty of agriculture stocks that trade on the TSX. You can also check out TSE:COW, the only agriculture ETF on the TSX, or take a look at the commodities futures market.
As of August 2022, the three largest sectors in the Canadian agriculture industry are dairy, vegetables, and soybeans.
Any Canadian brokerage allows you to buy farming stocks, but I always recommend checking out discount brokerages like Wealthsimple Trade or Questrade where you can buy stocks for lower trading fees.
By far, the largest export crop in Canada is Wheat. Canada is one of the five largest wheat exporters in the world by volume.
Yes, there are several vertical farming stocks that trade on the TSX. In this article, I touched upon the Vancouver-based company, CubicFarm.
If you are looking to invest in farmland stocks, you can look at various agriculture infrastructure companies. There are also a variety of US-domiciled farmland REITs, such as Farmland Partners Inc (NYSE:FPI) and Gladstone Land Corp (NASDAQ:LAND).
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