The agriculture sector, a linchpin for food security and economic stability, is witnessing a significant shift towards technology adoption. This trend is not just about enhancing operational efficiency but also about addressing the growing global demand for food. According to a 2024 survey, there has been a 3% increase since 2022 in farmers using or willing to adopt digital technology. North America leads this adoption, with the United States at the forefront, where 61% of farmers are embracing digital agronomy and 51% are adopting precision agriculture hardware. Latin America, meanwhile, saw the fastest growth rate of 10% in technology adoption between 2022 and 2024. Large farms are 45% more likely to adopt these technologies than smaller farms, driven by the potential for a positive return on investment.
This technological evolution is crucial as the global food and agribusiness industry, valued at over $5 trillion, is expected to grow further. By 2050, caloric demand is projected to increase by 70%, and crop demand for human consumption and animal feed is forecast to rise by at least 100%. The agriculture sector, which includes farm-related industries, contributed over $1.5 trillion to the American economy in 2023, representing 5.5% of the GDP. However, the true economic contribution of agriculture is believed to be much higher due to its extensive supply chain and the added value generated by various sectors that rely on agricultural inputs.
In this context, Deere & Company (NYSE:DE), a leading manufacturer of agricultural equipment, stands out as a key player. With a market cap of $129.79 billion, Deere is at the forefront of automation in agriculture. In January 2025, the company unveiled several new autonomous machines at CES 2025, including an autonomous 9RX Tractor for large-scale agriculture, a 5ML Orchard Tractor for crop protection, a 460 P-Tier Autonomous Articulated Dump Truck for infrastructure projects, and an autonomous Battery Electric Mower for commercial landscaping. These innovations are designed to address labor shortages and meet the surging demand for food and infrastructure. The global agriculture equipment market, valued at nearly $181 billion in 2023, is projected to grow at a CAGR of 7.5% to reach $345 billion by 2032, presenting a substantial growth opportunity for Deere & Company.
Deere & Company’s commitment to automation and technology aligns with the broader industry trend, making it one of the most promising agriculture stocks in 2025. The company’s innovative approach to automation is supported by a consensus Buy rating from Wall Street analysts and strong investor sentiment. According to Insider Monkey’s database for Q3 2024, 41 hedge funds held a stake in the company, reflecting significant institutional confidence.
