The agriculture sector, a linchpin for food security and economic stability, is not just about farm businesses but encompasses a broad spectrum of industries that rely on agricultural inputs. In 2023, agriculture, food, and related industries contributed a staggering $1.5 trillion to the American economy, accounting for 5.5% of the GDP. Farm businesses alone generated $222.3 billion, or 0.8% of the GDP. However, the true impact of agriculture is likely much higher, as numerous sectors depend on agricultural outputs, adding significant value to the economy. This underscores the sector’s pivotal role in driving economic growth and stability.
The global food and agribusiness industry is valued at over $5 trillion, and this figure is projected to rise further. By 2050, caloric demand is expected to surge by 70%, with crop demand for human consumption and animal feed forecast to increase by at least 100%. This surge in population and food demand necessitates innovative agricultural practices to ensure sustainable production. Recent trends highlight a significant shift toward technology adoption in agriculture, with farmers increasingly turning to digital solutions to enhance operations. A 2024 survey revealed a 3% increase since 2022 in farmers using or willing to adopt digital technology. North America leads in agricultural technology adoption, while Latin America experienced the fastest growth rate, at 10%, between 2022 and 2024. In the United States, 61% of farmers are using or willing to adopt digital agronomy, and 51% for precision agriculture hardware. Additionally, 38% of American farmers are adopting remote-sensing technologies, and over two-thirds are using or willing to adapt to farm management software. Large farms are 45% more likely to adopt agriculture technology than smaller farms, driven by the potential for positive ROI.
Among the top agriculture stocks, Ingredion Incorporated (NYSE:INGR) stands out. With a market cap of $8.89 billion, Ingredion is a global leader in ingredient solutions, serving customers in over 120 countries. The company specializes in producing and selling a variety of food and beverage ingredients, including starches and sweeteners, derived from plant-based materials and grains like corn, potato, tapioca, and rice. Ingredion’s Q4 2024 earnings call revealed a 6% drop in net sales for the quarter and a 9% decrease for the year, attributed to price mix challenges, the sale of its South Korean business, and foreign exchange impacts. However, the company posted better-than-expected quarterly earnings, with EPS at $2.63 for Q4, up 34% from last year, and beating analysts’ expectations by 10 cents. Adjusted EPS for the full year 2024 stood at $10.65, compared to $9.42 in 2023. Ingredion’s commitment to shareholder returns was evident through $210 million in dividends and $216 million of share repurchases in 2024. Wall Street analysts are bullish on INGR, with a consensus Buy rating and an average share price upside potential of over 22%. Overall, INGR ranks 10th on our list of the biggest agriculture stocks in 2025.
