To provide the world’s demands with food and raw materials, the agricultural sector – which includes growing crops and livestock – is necessary for global sustainability. According to data from Business Research CompanyThe industry is expected to expand with a complex annual growth rate (CAGR) by 7.9 % from 14.36 trillion dollars in 2024 to 15.50 trillion dollars in 2025, indicating its continuous importance as a global economy. Despite its value, the industry has witnessed structural changes over the years due to resource management, changing global demand, and technological improvements.
However, concerns about productivity and sustainability have emerged in recent years, creating obstacles to long -term growth. There was a major shift in this sector that is the increasing contribution of the global south – Africa, Asia and Latin America – which constituted 73 % of global agricultural production by 2020. McKinsey and Partners It is expected that with these emerging markets updating their agricultural operations, the production rate will grow more. This change was fed through the progress of crop science, irrigation techniques, and mechanization, which enabled larger returns with the same land resources. Moreover, reducing inflation in the United States at the end of 2024 helped reduce the costs of inputs, especially in energy, which led to the rise in margins of agricultural producers.
Despite these encouraging signs, the efficiency of the industry, as measured by the productivity of the total factors (TFP), slowed down. The global TFP growth rate has decreased from 1.6 % in the early 2000 to 0.9 % over the past decade. With food consumption is expected to increase 60 % By 2050, slow productivity raises concerns about future food security, increased prices, and increased environmental restrictions. Likewise, the agricultural products sector has witnessed negative returns and returns for one year. In contrast, the prices of global food commodities increased in February 2025, driven by the costs of sugar, dairy and vegetable oils.
To address these difficulties, the sector focuses on sustainable solutions, especially associated agriculture. This requires the use of advanced technologies to improve, manage and organize agricultural processes. The progress in digital technologies has made it possible to collect and use huge amounts of data at a low cost, thus increasing crop yield while reducing resource consumption, such as water, fertilizers and seeds. according to Business visionsThe value of the global market related to agriculture amounted to $ 1.84 billion in 2018, and it is expected to grow to 7.22 billion dollars by 2026, with a complex annual growth rate of 19.1 % during the expected period. In 2018, North America took control of the global market, as a 34.06 % stake in 2018.
Given these properties, maintaining agricultural expansion requires a significant investment in agricultural techniques from the next generation and sustainable practices. according to McKinsey and PartnersAgriculture in agricultural technology has the ability to make a 25 % increase in global production over the next decade while improving efficiency and reducing environmental impact. Meanwhile, the sector remains a decisive engine for the American economy, representing more than $ 1.5 trillion in GDP in 2023, or 5.5 % of economic output.
Agriculture is the basis for global economic stability and support of billions of people worldwide. However, despite its central role, not all shares in the industry were good.
In this article, we started using Swarkers Finviz to determine stocks in agricultural inputs and agricultural products industries. From this expanded list, we have chosen companies of strong market value. After that, we discussed the number of hedge funds that were invested in these companies because we believe that the high -level arrows are of the benefit of hedge boxes well. Finally, we decided the short percentage of extinguisher for each company, which represents the level of negative morale or short interest in stocks. Then the companies were sorted in an upward arrangement according to their short percentage of flotation.
Why are we interested in the arrows that accumulate hedge boxes? The reason is simple: Our research showed that we can outperform the market by imitating the best stock choices for the best hedge boxes. The quarterly newsletter strategy chooses 14 small stocks of large and large rule every quarter, and has returned by 373.4 % since May 2014, overcoming its standard by 218 percentage points (See more details here).
Is Ago Corporation (AGCO) the worst worst CAP for cultivation for purchase?
A farmer surrounded by a field of crops, its tractor is parked in the background.
Number of hedge boxes: 16
% Of short floating: 7.27 %
AGCO Corporation (NYSE: AGCO) is a global manufacturer and distributor for agricultural equipment, including tractors, grain storage solutions, harvesting equipment, and fine agricultural techniques. The company operates in many sectors, offers widespread aglass machines, specialized agriculture, and livestock operations.
Ago Corporation (NYSE: AGCO) announced a 24 % loss in sales for the fourth quarter that ended on December 31, 2024, compared to the fourth quarter of 2023, while the entire 2024 revenues decreased by 19 % on an annual basis. The modified operating margin was 8.9 % for this year, with a decrease in the modified arrow’s profitability to $ 7.50. North America’s operating income decreased by about $ 77 million, while operating margins decreased by 830 basis points. Moreover, the company witnessed pricing pressure, with a 1 % decrease in prices in the fourth quarter, $ 297 million of a free cash flow, or approximately $ 288 million in 2023. AGCO also recorded a decrease in Goodwill worth $ 350 million for its PTX joint project, which affected financial financial money.
Despite industry restrictions, Agco Corporation (NYSE: AGCO) has strategic procedures, such as stripping cereal and protein division and launching its TTX precision technology. The PTX TRIMKLE merchant network increased more than 1000 while maintaining cooperation with more than 100 OEMS. The company also continued to simplify the stock of agents, while the surplus of stocks remained a concern to go to 2025.
In the future, AGCO Corporation (NYSE: AGCO) expects that Q1 2025 will be the lowest quarter, as sales are expected to decrease by about 32 % on an annual basis. Priority reduction is still a top priority, as production is expected to decrease 35-40 % of Q1 2024 levels. Moreover, the company faces increasing challenges from the expected tax rate above 35-38 % and foreign currency opposition, which is likely to reduce revenues by $ 300 million. These obstacles, along with the decrease in profitability and continuous stock issues, encouraged short sales activity, which puts them among the worst agricultural stocks.
Generally, AGCO Fourth rank In the list of the worst small agricultural shares for purchase. While we acknowledge the capabilities of AGCO, our conviction is to believe that artificial intelligence stocks have a greater promise to provide higher returns, and do so in a shorter time frame. Amnesty International has increased since the beginning of 2025, while famous artificial intelligence shares have lost about 25 %. If you are looking for the most promising Amnesty International share than AGCO but it is trading less than 5 times its profits, check our report on this The cheapest inventory of artificial intelligence.
