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Long-Term Opportunities in Agriculture Stocks

Fewer acres planted will likely result in lower crop input volumes, but we expect profit impacts to be short-lived.

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Heavy rains have flooded farmland across much of the Midwest, leading to the lowest total U.S. acres planted in more than a decade. A weak planting season sent agriculture stocks lower since the start of April, following the release of the initial weekly USDA crop progress report. Although fewer acres planted will likely result in lower crop input volumes, we expect profit impacts to be short-lived. Amid increased June planting, some stocks have recovered. However, others remain down, sprouting attractive opportunities across our coverage.

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Seth Goldstein does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.