Agriculture Stocks To Feed Into Your Portfolio

Will farmers be driving Ferraris in ten years? That’s what Jim Rogers, the immortal billionaire investor who founded the Quantum fund, thinks. We’ll have to wait and see if that turns out to be true, but his sentiment is based upon a few key factors that continue to put upward pressure on the prices of agricultural goods.

3 Factors That Could Effect Agriculture Stock Prices

1.) Emerging Market Demand

Emerging-market economies like China and India are growing by leaps and bounds, enriching the citizens of those countries and creating more demand for higher-end food products. But due to a combination of rolling demand and massive populations, these countries lack the infrastructure and production capacities to satisfy that ‘hunger’. China, for example, is home to 22% of the world’s population but just 7% of its arable land. So in order to fill the gap, these countries will need to enlarge their imports, which stand to be a boon for long-term gains in the agriculture stocks industry.

2.) Inflation Hedge

With the Dollar collapsing at a fast pace, investors continue to flock to companies that trade in ‘hard assets’, and the agricultural stocks complex definitely qualifies. Although corn, beans and wheat are down sharply from last year, prices have recently begun to rebound and move higher. Hard assets are currency neutral and will continue to be a great investment destination for anyone alarmed about the ruining of paper currencies.

3.) Global Weather Volatility

Farmers live in a shaky world. One season, they spend months praying for rain to nourish their crop; then in the next season, the crop gets wiped out because of too much rain. Just this summer, sugar prices soared to a new 28-year high after a drought killed production in India. Ag producers need just the right balance of rain, sunshine and nutrients to produce the desired yield, something that consistently effects production and, in turn, prices.

Now that we have a essential understanding of the underlying essentials affecting prices and consumption in agriculture, let’s go ahead and take a look at some companies that appear to be well positioned to profit from the trend.

4 Agriculture Stocks

The Anderson’s, Inc. (ANDE – Analyst Report) is an agriculture producer and transporter in the U.S. The company’s share price took a hit last year but has since bounced back nicely as the economy and its estimates have recovered. With the current-year Zacks Consensus Estimate pegged at $2.22, this Zacks #1 Rank stock offers some value with a P/E of 15X. The Zacks Consensus Estimate for agriculture stocks next year is bullish, projecting 27% earnings growth for this agriculture stock.

China Green Agriculture, Inc. (CGA – Snapshot Report) operates as a fertilizer producer out of China. Shares posted big gains this year as China’s economy has remained hot (recently reporting GDP growth of 8.9%). Next year’s agriculture stocks growth projection for the company is a bullish 57%.

Zhongpin Inc. (HOGS) has posted huge agriculture stocks gains in 2009, with its share price more than doubling after bottoming out just above $7 in early March. The Chinese-based agriculture producer and Zacks #1 Rank stock offers big value in a very bullish environment, trading at just 10X projected current-year earnings, with a solid 18% next-year growth projection to boot.

Deere Co. (DE – Analyst Report) builds and manufactures farming machines and equipment. Farmers will be seeking to upgrade their equipment if they’re raking in big bucks, and that will provide shares of DE with a very nice boost. As it stands, the company’s share price is down from its peak in early 2008, but has begun to rebound on a nice earnings beat last quarter and rising agriculture stocks estimates.

Agriculture Stocks Conclusion

When you take a composite view of the agricultural stocks landscape, it’s easy to see that there are a number of macro-level trends that could produce long-term growth prospects. It’s a great way to round out your portfolio and give you a chance to outperform the averages over the long haul.

The Safety Of Our Food Supply Is In The Hands Of Agriculture Workers

Many people are not aware of the enormous role that agricultural workers play in our daily lives. It is obvious that the fruits and vegetables that we eat come from farms. However, agriculture jobs affect far more aspects of the typical diet than solely plant matter. The animals that we consume eat grains that are cultivated by farmers. Even the most processed foods such as cookies and crackers contain farm-grown products, and many preserved foods utilize agriculturally-derived products to sustain the substances’ nutrients and prevent the growth of harmful bacteria.

Agriculture jobs are therefore extremely important in protecting our world’s food supply. While we might not exclusively consume fruits and vegetables, all of our food products are linked in some way to the farms.

The most typical agriculture job that people associate with this field is that of the basic farmer. Society’s modern farmers do not receive nearly the amount of credit that they deserve. These workers labor long hours in oftentimes harsh conditions in order to provide the general public with the sustenance that it needs, and although industrial machines are replacing the jobs of many agricultural farmers, these people still play an enormous role in protecting the world’s food supply.

However, not all agricultural jobs involve the planting and harvesting that most people envision when discussing this area of study. Agricultural scientists are immensely important in providing society with the food that it needs. These scientists study crops and livestock in order to discover more efficient methods of farming. Pest control methods, sustainability, and environmental impact are also researched extensively to ensure that farm products can still be provided to the world’s citizens in the years to come. These scientists perform numerous experiments to try to discover new compounds that can be safely consumed or added to the soil to improve crop yield. In recent years, agricultural scientists have increased the world’s crop yield by an astounding percentage. Their work in creating new agricultural methods to make farming more accessible to be people in rough environments also helps to eliminate worldwide hunger.

Whether the agriculture job involves complex scientific research or the simple maintenance of a field of crops, workers in this field are incredibly important to the welfare of modern society. Without the hard labor of farmers and agricultural scientists, we would not be able to produce enough food to sustain the world’s population. Agriculture jobs play a central role in ensuring the health of the world’s people.

Organized Food Retail Driving the Agriculture Sector in India

IMARC Group, one of the world’s leading research and advisory firms, finds that the agriculture market in India is expected to grow robustly in the coming years reaching sales worth INR 42,707 Billion by 2017-18. Findings from the report suggest that a number of factors are currently inducing a major transformation in this sector. These include – a newfound interest of the organized sector, new and improved technologies, farming becoming more mechanized, new markets and demands, easy credit facilities, rapid growth of contract farming, agriculture friendly policies from the government, etc.

The report finds that, although currently small, the Indian organized food retail market has immense potential. The total market for organized food retail was worth INR 221 Billion in 2011-12 and is expected to grow at a CAGR of around 14% reaching revenues worth INR 477 Billion by 2017-18. Organized food retail outlets such as Reliance, Vishal Mega Mart, Spencer Retail, Future Group, etc, have now opened their outlets not only in the metros but also in the smaller cities of India. Organized retail outlets are currently offering consumers an access to a diversified range of products directly or indirectly related to the agriculture sector. The report expects an access to a very wide range of products coupled with attractive discounts to create a positive impact on the agriculture sector in India.

IMARC Group’s new report entitled -Indian Agriculture Market Report & Forecast: 2012-2017- provides an analytical and statistical insight into the agriculture industry along with its various segments and sub-segments. The study that has been undertaken using both desk-based and qualitative primary research has analyzed various aspects and provides a comprehensive understanding of the Indian agriculture market. The report can serve as an excellent guide for investors, researchers, consultants, marketing strategists, and all those who are looking to foray into the Indian agriculture market in some form or the other.

To buy the complete report or to get a free sample, please contact:

IMARC Group – Asia

Email:

Phone: +91-120-415-5099

IMARC Group – Europe, Middle East & Africa

Email:

Phone: +44-702-409-7331

IMARC Group – Europe, Middle East & Africa

Email:

Phone: +1-631-791-1145

Popular Engineering Courses in India Agriculture Engineering

Agricultural Engineers execute engineering science in all tasks related to horticulture and agriculture. Job of an agricultural engineer include the activities such as improvement in farm machinery, rural electrification, new technologies, designs, farm structures, bio-gas, conservation of soil, improving the quality of agricultural products and preserving the water resources. Engineers also look after the technical functioning of all agricultural related activities. Students who study agricultural engineering courses may use their information of agricultural systems and biological function in increasing the productivity of food and other agriculture products and to keep the environment safe at the same time.

Eligibility for Gaining Admission in Top Agriculture Engineering Courses of India

Top engineering colleges in India provide specialize course of agriculture engineering from where students can pursue B.E/ B.Tech bachelor degree courses or diploma in agriculture engineering courses. To become qualified agriculture engineer one can take admission in agricultural engineering colleges after 12th examination with subjects like Mathematics, Biology, Physics, and Chemistry. Agricultural courses are available at two levels, students can either take admission in agricultural engineering schools and can pursue bachelor degree courses, or they can pursue post graduate degree courses in agriculture. Diploma courses are also available in college of agricultural engineering or polytechnics.

Selection Basis among Best Agricultural Engineering Colleges of India

Selection in agricultural courses depends on the following points:

1.Marks secured in the final examination of 10+2 with science subjects

2.Entrance exams done on the state and national level

Duration of Agricultural Engineering in India

Graduation (BE / B.Tech) in agricultural courses are of four years duration however, diploma in agriculture courses is of 2-3 years duration. The agriculture courses cover agriculture sciences, Soil conservation, irrigation practices, drainage method, firm machinery, agriculture sciences, dairy engineering etc.

Top Agricultural Engineering Institutes in India

The best Agricultural Engineering Colleges in India are listed below:

Indian Institute of Technology (New Delhi, Mumbai, Guwahati, Kanpur, Kharagpur, and Chennai)

Delhi College of Engineering, Delhi

Global Institute of Intellectual Property, Delhi

Faculty of Engineering and Technology, New Delhi

T V B School of Habitat Studies, New Delhi

Vastu Kala Academy, New Delhi

School of Planning and Architecture, New Delhi

Employment Opportunities after Completing Agricultural Engineering from Top Engineering Institutes of India

Agriculture Engineering is considered as the good career opportunity which includes equipment research and design, product engineering, environmental consulting, facilities design, and engineering management. Companies where agriculture engineers can find professional opportunities are minor irrigation corporation, National Seed Corporation of India, National Diary Development Board, Agriculture Research Organization, Food Corporation of India, Agriculture University, agro industry, Nationalized Bank, Diary and food industries, Agriculture machinery manufacturing organization, tea gardens etc. Students who are pursuing Agriculture Engineering can consider that job in fields of engineering are available in huge number. Agriculture engineering students can find employment in given areas:

Government Sector such as municipal corporations, railways, and telecommunications departments, etc.

Private companies

Public Sector organisations

Research organisations and laboratories

As commissioned officers in the defence services

As technical experts on engineering projects in banks and financial corporations

An engineer can set up his / her own small unit / company or consultancy