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Top Canadian Agriculture Stocks to Watch in 2024

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Written by Tim-bot
Reviewed by Friedrich Odermann Fact-checked by Ed Weinberg
Updated 1/31/2024 12 min read

The Canadian agriculture sector contains companies ranging from crop production businesses to grain handling and fertilizers. These stocks offer investors a way to tap into Canada’s robust agriculture industry, which is a key exporter of various commodities like wheat and canola. Given the essential nature of agriculture, these stocks can provide both stability and growth potential, making them a compelling option for diversification.

Stick around because this article is your all-in-one resource for understanding the Canadian agriculture sector, from crop production to grain handling.

We’ll cover the following questions …

  • What Are Agriculture Stocks in Canada?
  • What Factors Should You Consider Before Investing in Canadian Agriculture Stocks?
  • How Do You Buy Canadian Agriculture Stocks?
  • What Are the Top Agriculture Stocks in Canada for 2023?
  • What Is Canada’s Most Common Agricultural Product?
  • What Are the Top Agriculture ETFs in Canada?

Let’s get to the picks!

What Are Agriculture Stocks?

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Agriculture stocks represent companies involved in farming practices, from seeding to output. They can include businesses focused on crops, fertilizers, pesticides, and even food production. In my years of trading and teaching, I’ve seen how these stocks can offer a unique blend of stability and growth, especially when you’re looking to diversify your portfolio.

Investing in Canadian Agriculture Stocks

When it comes to investing in Canadian agriculture stocks, you’re not just putting your money into corn or barley. You’re investing in a complex supply chain that includes everything from grains like oats, rye, and flaxseed to legumes like peas and lentils. The sector is diverse, with companies specializing in various segments, from food products and ingredients to beverages like milk. Canada’s agriculture industry has a global reach, exporting to countries like Russia, Australia, and the UK. With advancements in technology and infrastructure, the sector is poised for growth, offering a variety of investment opportunities.

If you’re looking to diversify your portfolio beyond traditional agriculture stocks, you might want to explore other sectors. For instance, marijuana stocks are gaining traction as a viable investment opportunity. The cannabis industry is growing rapidly, and it offers a different set of risks and rewards compared to traditional agriculture. It’s essential to understand the market dynamics and legal landscape before diving in. To get started, you can read this comprehensive guide on marijuana stocks.

Why Invest in Agriculture in Canada?

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Canada is a global leader in agriculture, exporting a wide range of commodities from wheat to canola. The country’s vast land and favorable conditions make it an ideal place for farming. Investing in Canadian agriculture stocks gives you exposure to this high-performing sector, and let’s not forget, I’ve been trading these kinds of stocks for years, and the returns can be impressive.

If you want to supercharge your investment strategy, consider adding technology to the formula. Artificial Intelligence is making significant strides in various industries, including agriculture. From predictive analytics to automated farming solutions, AI is revolutionizing the way we approach agriculture. Canada is at the forefront of this technological wave, offering unique investment opportunities. Check out these Canada AI stock opportunities for 2023 for more insights.

Factors To Consider Before Investing In The Best Canadian Agriculture Stocks

Before you jump in, consider factors like market cap, dividend yield, and the company’s role in the agriculture industry. Look at their history, performance, and the commodities they focus on. Trust me, I’ve seen people ignore these basics and regret it later.

If you’re new to the Canadian stock market, it’s crucial to understand the basics before making any investment decisions. The Canadian stock market has its own set of rules, regulations, and opportunities. Whether you’re interested in agriculture stocks or other sectors, a solid understanding of the market can go a long way in making informed investment choices. For a beginner’s guide to investing in the Canadian stock market, you can read this article.

How to Buy Canadian Agriculture Stocks in 2023

Buying Canadian agriculture stocks is straightforward. Many are listed on major Canadian exchanges like the TSX or U.S. exchanges such as Nasdaq. You can purchase shares through trading platforms, but be mindful of trading fees. I’ve been using various platforms for years, and customer service can make or break your trading experience.

Top Agriculture Stocks in Canada for 2023

My top Canadian agriculture stock picks are:

Stay tuned for a comprehensive list of top agriculture stocks in Canada, complete with data on performance, market cap, and dividend yields. These stocks are poised for growth, and they offer a range of investment options for every type of investor.

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

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Nutrien (TSE: NTR)

My first Canadian agriculture stock pick is Nutrien (TSE: NTR).

Nutrien is a major player in the agriculture sector, particularly in the fertilizer segment. The company has a strong presence not just in Canada but across North America and other parts of the world. With a focus on sustainable practices, Nutrien is a go-to source for essential nutrients like nitrogen and phosphorus, which are crucial for crops like corn, barley, and hard spring wheat.

Ag Growth International (TSE: AFN)

My second Canadian agriculture stock pick is Ag Growth International (TSE: AFN).

Ag Growth International specializes in grain handling and storage solutions. With a broad range of technologies and equipment, the company plays a vital role in the agriculture supply chain. From conditioning equipment for soybeans and sunflowers to storage solutions for peas and lentils, Ag Growth International is a name to consider.

SunOpta Inc (TSE: SOY)

My third Canadian agriculture stock pick is SunOpta Inc (TSE: SOY).

SunOpta Inc is in the business of plant-based foods and beverages. The company sources a variety of grains and legumes, including oats, rye, and flaxseed, and turns them into consumer-ready products. With a focus on sustainability and waste reduction, SunOpta is aligned with the growing demand for eco-friendly food options.

Saputo (TSX: SAP)

My fourth Canadian agriculture stock pick is Saputo (TSX: SAP).

Saputo is one of the top dairy processors in the world, with a strong focus on milk-based products. The company has a diversified portfolio that includes not just milk but also other dairy-based foods and beverages. With operations in countries like the United States, Australia, and Germany, Saputo offers global exposure in the dairy segment.

Are Canadian Agriculture Stocks Right for You?

Canadian agriculture stocks offer a unique chance to diversify your portfolio. Whether it’s hard spring wheat, alfalfa, or specialized crops like canary seed and kleingrass, these stocks tap into essential food and energy supplies. However, investing in this sector isn’t a one-size-fits-all strategy. It’s crucial to consider the demand, the state of global markets, and even the impact of climate on crop yields. So, before you take the plunge, understand the risks and rewards, and maybe even take a few educational steps to get the total picture.

Pros and Cons of Agriculture Stocks

Agriculture stocks offer both opportunities and risks. On the upside, they can provide stable dividends and growth potential. On the downside, they are subject to market conditions and commodity prices. I’ve traded these stocks for years, and it’s crucial to weigh the pros and cons carefully.

Key Takeaways

  • Canadian agriculture stocks offer a unique investment opportunity due to Canada’s role as a leading exporter of key commodities like wheat and canola.
  • These stocks can provide stability and diversification to your portfolio, but they also come with inherent risks such as weather conditions and global trade policies.
  • Research is crucial before making any investment decisions. Look at factors like market cap, dividend yields, and the company’s role in the agriculture industry.
  • Diversification is key. Don’t put all your eggs in one basket; consider other sectors and investment vehicles like ETFs to balance your exposure.
  • Always be mindful of trading fees when choosing a platform to buy these stocks, especially if you’re trading on international markets.

Conclusion

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Investing in Canadian agriculture stocks can be a rewarding venture if done wisely. The sector offers both growth and stability, but it’s crucial to do your homework and understand the market conditions. And hey, if you’re new to this, don’t hesitate to seek advice or use educational content to up your game.

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What Canadian agriculture stocks are on your watchlist? Let me know in the comments — I love hearing from my readers!

Frequently Asked Questions

What Is Canada’s Most Common Agricultural Product?

Wheat is the most common agricultural product in Canada, followed closely by canola. These commodities are significant export items, contributing to the country’s economy.

How Can I Invest in Agriculture Stocks in Canada?

Investing in Canadian agriculture stocks is as simple as opening a trading account on a platform that offers access to Canadian markets. Just be aware of trading fees and always do your due diligence.

What Are the Top Agriculture ETFs?

Agriculture ETFs offer a way to invest in a basket of agriculture stocks, providing diversification and reducing risk. The iShares Global Agriculture Index ETF (COW.TO) is a popular option. This ETF gives you exposure to a basket of agriculture-related companies, from those involved in the production of crops like alfalfa and triticale to those in the food processing and equipment sectors.

How Do Unique Canadian Products Impact Investments?

Different types of grasses such as fescue, orchardgrass, red fife, and timothy brome are critical to Canadian agriculture. Their success can significantly affect the return on investments in agriculture stocks. For example, if fescue yields are particularly high in a given year, companies specializing in fescue may see a boost in their stock value.

What Role Do Europe and India Play in Canadian Agriculture Stocks?

Europe and India are crucial players in the global agricultural market. Canadian agriculture stocks can be influenced by trade relations, export numbers, and population growth in these regions. For instance, a surge in demand for bluegrass in Europe can drive the stock prices of Canadian companies specializing in this type of grass.

How Does Information and Disclaimer Policies Affect Investments in Agriculture Stocks?

Investors must pay attention to the information provided by Canadian agriculture companies, including disclaimers and endorsement policies. These elements can guide investment decisions and help manage assets responsibly. For example, a company with a robust disclaimer policy may be more transparent, thereby increasing investor confidence.

Can You Get Bonuses and Special Offers for Investing in Wineries?

Yes, some Canadian agriculture stocks, particularly those related to wineries, may offer bonuses or special order options and services to attract investors. However, it’s essential to read any disclaimer or endorsement policies on their sites before proceeding with such investments.


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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (205) 851-0506 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”