Top Canadian Agriculture Stocks to Buy in March 2025

ByDan Kent Published On:

Key takeaways

Global Food Demand Fuels Opportunity: As the world’s population grows and dietary habits evolve, the agriculture sector remains a cornerstone for meeting food supply needs, making companies like Nutrien and Ag Growth International pivotal players.

Innovation Drives Growth: From precision agriculture and automation to plant-based food innovation, companies in the sector are leveraging technology to address sustainability challenges and unlock new markets.

Weather and Market Volatility Shape Performance: Agriculture stocks are influenced by unpredictable factors like commodity prices, input costs, and extreme weather events, requiring investors to keep a close eye on these dynamic risks.

3 stocks I like better than the ones on this list.

It is no secret, folks need food. This means steady demand for not just food but also the stuff connected to food production and supply chains.

As the population continues to grow, there will be continued demand placed on agriculture companies, whether it be from machinery to fertilizer to meet demand. Although Canada is a major agriculture exporter, we don’t really have all that many publicly traded companies that focus on the area. In fact, there are only a couple.

In this article, we’ll look into what those companies are and my overall thoughts on them.

What are the Best Agricultural Stocks to Invest in?

World’s largest provider of crop inputs

Nutrien (TSE:NTR)

Nutrien is a global powerhouse in agricultural solutions, offering potash, nitrogen, and phosphate-based fertilizers. The company also operates a retail network of over 2,000 locations, providing farmers with seeds, crop protection products, and advisory services. With operations in nearly every major agricultural market, Nutrien plays a critical role in driving food production globally.

P/E: 38.3

5 Yr Revenue Growth: 5.9%

5 Yr Earnings Growth: -3.8%

5 Yr Dividend Growth: 4.8%

Yield: 4.1%

  • Dominates the global potash market, benefiting from consistent demand.
  • Diversified revenue streams across fertilizers, seeds, and crop protection.
  • Retail business adds stability to cyclical commodity markets.
  • Positioned to benefit from rising global food demand.
  • Strong balance sheet and steady dividend yield appeal to income investors.
  • Focused on sustainability with an increasing shift to precision agriculture.
  • Global Food Demand: Rising populations and dietary changes increase the need for fertilizers. Nutrien is well-positioned to meet this demand.
  • Commodity Price Volatility: Fertilizer prices often move with global grain prices, impacting Nutrien’s margins.
  • Sustainability Initiatives: The company’s push for carbon-neutral fertilizers and precision farming can enhance its long-term growth.
  • Market Expansion: Nutrien’s continued retail expansion into underserved agricultural regions is a growth driver.
  • Commodity Price Dependency: A sharp drop in fertilizer prices could hurt revenue and margins.
  • Regulatory Changes: Environmental regulations on fertilizer production may increase costs.
  • Geopolitical Risk: Operating in multiple countries exposes Nutrien to trade restrictions and political instability.
  • Economic Slowdowns: Farmers may delay purchases in weaker economic periods, impacting sales.

Manufacturer of grain handling and storage equipment

Ag Growth International (TSE:AFN)

Ag Growth International designs and manufactures equipment for grain handling, storage, and processing. Its products cater to both commercial and farm-scale operations, including conveyors, silos, and dryers. With a presence in over 100 countries, the company helps ensure efficient grain storage and transport to meet global food demand.

P/E: –

5 Yr Revenue Growth: 7.1%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -24.2%

Yield: 1.7%

  • Diverse product lineup supports farming and industrial grain systems.
  • Growing international presence, especially in emerging markets.
  • Expanding focus on food processing equipment creates new revenue streams.
  • Positioned to benefit from rising grain production and storage needs.
  • Strong revenue visibility from recurring sales of maintenance parts.
  • Investments in automation and smart technology create competitive advantages.
  • Global Grain Production: Increasing crop yields will drive demand for storage and handling equipment.
  • Emerging Market Growth: Expanding agriculture infrastructure in developing countries is a key opportunity for AGI.
  • Technology Integration: Automation and IoT adoption in agriculture equipment are reshaping the industry, and AGI is investing here.
  • Weather Volatility: Extreme weather events can increase demand for grain storage and processing solutions.
  • Farm Budget Constraints: Farmers may delay equipment purchases during weak agricultural cycles.
  • Input Costs: Rising steel prices and other raw materials could pressure margins.
  • Currency Exposure: Operating globally means AGI faces risks from currency fluctuations.
  • Competition: Competitors offering cheaper alternatives could erode market share.

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Organic and plant-based food producer

SunOpta Inc. (TSE:SOY)

SunOpta focuses on producing plant-based and organic food products, including oat milk, non-dairy creamers, and fruit-based snacks. The company operates in the health and wellness sector, serving food manufacturers, retailers, and foodservice operators across North America and Europe. SunOpta also emphasizes sustainable sourcing practices.

P/E: –

5 Yr Revenue Growth: 0.7%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: -%

  • Riding the growing trend of plant-based diets and organic food demand.
  • Unique focus on high-growth categories like oat milk and non-dairy products.
  • Strong relationships with retailers help expand product reach.
  • Opportunities for margin expansion through vertical integration.
  • Increasing focus on sustainability appeals to environmentally conscious consumers.
  • Positioned for growth in the premium, health-focused segment of the food market.
  • Plant-Based Diet Growth: The rise in vegan and flexitarian lifestyles boosts demand for SunOpta’s products.
  • Retail Expansion: Partnering with major retailers expands SunOpta’s footprint in a competitive space.
  • Product Innovation: Developing new plant-based and organic products is crucial to staying competitive.
  • Sustainability Demand: As consumers prioritize eco-friendly products, SunOpta’s sourcing practices are a competitive advantage.
  • Competitive Market: The plant-based space is highly competitive, with many new entrants.
  • Input Cost Volatility: Rising costs for organic and plant-based ingredients can squeeze margins.
  • Economic Sensitivity: Premium products may see reduced demand during economic downturns.
  • Scaling Challenges: Rapid growth could strain operations, leading to inefficiencies.

Overall, These 3 Options Each Provide a Unique Exposure to the Agriculture Sector

With Nutrien being a potash producer, Ag Growth being a manufacturer, and SunOpta being a plant-based food producer, there is a nice mix on this list for investors. In terms of “ranking,” I wouldn’t say anyone is higher up than the other. It just depends on what type of exposure you want as an investor.

Long term, I do have the most confidence in Nutrien as a blue-chip, but SunOpta and Ag Growth provide their own unique opportunities.

Canadians may want to look internationally however to reduce their concentration risk. In this situation, the iShares ETF COW is perfect.

What is Canada’s Most Common Agricultural Product?

Overall, wheat and canola are some of the largest agricultural products in Canada, and according to Statistics Canada, crop production overall contributes more than $150B to our GDP.

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Top Canadian Food and Grocery Stocks

How can I Invest in Agriculture Stocks in Canada?

In order to invest in agriculture stocks here in Canada, you’ll likely have to invest in individual companies. At the time of writing we don’t really have enough companies here in Canada to warrant the creation of an exchange traded fund, or in other words a basket of agricultural stocks.

However, Canadian ETFs exist for exposure to the agricultural sector. An added bonus? You’ll also be getting a mix of not only the top Canadian agriculture stocks, but the top agricultural stocks in North America as well. Lets take a peek at that ETF.

The iShares Global Agriculture Index ETF (COW.TO) 

The iShares Global Agriculture ETF has a unique ticker, COW. However, don’t make the mistake of not adding the “.TO” or whatever extension your brokerage requires to designate the Toronto Stock Exchange.

Why? If you end up buying COW in the United States, you’ll be buying a livestock ETF instead.

COW.TO has been designed to replicate, to the extent possible, the performance of the Manulife Investment Management Global Agriculture Index, net of expenses.

Under normal market conditions, COW will primarily invest in securities of one or more iShares ETFs and/or equity securities issued by international issuers participating in the agriculture sector.

It contains one of the top Canadian agriculture stocks like Nutrien Ltd (TSE:NTR), but also contains a wide variety of exposure south of the border. Archer-Daniels-Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. It is the top holding in the fund.

But, the fund also has exposure to equipment manufacturers like John Deere, Tractor Supply, and chemical producers like Corteva.

It is something you may want to consider if you’re looking for broad based, single click exposure. 

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