Canada’s agriculture industry is one of the country’s biggest contributors to the economy, which could also lead to big returns for investors wanting to dip their toes into the sector.
At a glance, the Government of Canada explains that the agriculture and agrifood industries support agriculture (farmers) and food and beverage processing, but that at a wider scale it blends into a larger agrifood system that has an impact on other industries across the supply chain.
In 2024, it is estimated that gross production in the Canadian agriculture market will reach US$69.53 billion, according to data from Statista. By 2029, market growth is projected to reach $91.61 billion and grow at a compound annual growth rate of 5.67 per cent during the forecast period.
As the Canadian agriculture industry continues to accelerate, with no signs of slowing down, now is as good a time as any to highlight Canadian agriculture stocks that might yield long-term benefits for investors.
Narrowing down Canadian agriculture stocks
Stocks in this list were chosen through TradingView’s stock screener under the chemicals: agriculture (agrochemical) sector as well as the agricultural commodities and milling sector.
Companies across the agrochemical sector are involved in providing specific kinds of chemical products to protect agriculture products – in other words, increasing crop production and killing pesticides – while agricultural commodities and milling companies are engaged in cleaning, tempering and grinding grains into flour and other grain products.
The companies in the list below have a maximum market capitalization of C$34 billion, which includes Canada’s largest agriculture stock, Nutrien (TSX:NTR), and a minimum market capitalization of $2.70 million, which includes Argo Living Soils (CSE:ARGO).
With that in mind, here are 10 Canadian agriculture stocks, in brief, listed from largest to smallest:
- Nutrien (TSX:NTR)
- AG Growth International (TSX:AFN)
- Itafos (TSXV:IFOS)
- BioHarvest Sciences (CSE:BHSC)
- Gensource Potash (TSXV:GSP)
- Verde AgriTech (TSX:NPK)
- MustGrow Biologics (TSXV:MGRO)
- Burcon NutraScience (TSX:BU)
- Affinor Growers (CSE:AFI)
- Argo Living Soils (CSE:ARGO)
10 Canadian agriculture stocks
With headquarters out of Saskatoon, Saskatchewan, Nutrien Ltd. is a fertilizer manufacturing company. In particular, the company produces and supplies fertilizers such as potash, nitrogen, phosphate and ammonium sulfate.
Under its Nutrien AG Solutions business, the company provides agricultural solutions, including nutrients, crop protection products, seed, services and agronomic advice to growers.
Nutrien also produces and distributes more than 27 million tons of potash, nitrogen and phosphate products for agricultural, industrial and feed customers all around the world.
Nutrien operates across a network of 2,000 retail locations spread across North America, Australia and South America.
As of the time of this writing, Nutrien has a market capitalization of $34.10 billion and a share price of $68.93.
AG Growth International has headquarters in Winnipeg and is a company focused on grain handling and storage solutions.
The company provides equipment solutions for agriculture bulk commodities, ranging from seed, fertilizer and grain to rice, feed and food processing systems.
Under its segments are farm and commercial. The company’s farm segments focus on farm customers with products including grain, seed and fertilizer handling equipment in addition to aeration products, grain and full storage solutions, among others.
Meanwhile, the company’s commercial segment focuses on entities such as port facility operators, food processors and elevators.
AG Growth International has facilities all around the world, including Canada, the United States, Brazil, Italy, France and India that enable it to distribute its products globally.
As of the time of this writing, the company has a market capitalization of $1.05 billion and a share price of $54.99.
Itafos is a Dover, Delaware-based phosphate and specialty fertilizer company and has a range of businesses and projects under its portfolio including Conda, Arraias, Farim, Santana and Araxa.
Conda is a vertically integrated phosphate fertilizer business in Idaho and boasts a production capacity of more than 550 kiloton (kt) per year of mono ammonium phosphate (MAP), merchant grade phosphoric acid (MGA) and ammonium polyphosphate (APP), and approximately 27 kt per year of hydrofluorosilicic acid (HFSA).
Meanwhile, its Arraias segment is a vertically integrated phosphate fertilizer business in Brazil that has a production capacity of approximately 500 kt per year of single superphosphate (SSP) and SSP with micronutrients (SSP+).
Farim is a phosphate mine project in Farim, Guinea-Bissau, while Santana is a phosphate mine and fertilizer plant project in Brazil. Finally, its Araxa segment is a rare earth element and niobium mine and extraction plant project also in Brazil.
Itafos has a market capitalization of $266.87 million and a share price of $1.39.
BioHarvest Sciences is a Vancouver, British Columbia-based company focused on developing its patented bio-cell growth platform farming technology.
The company is particularly advancing its botanical synthesis technology – called Botanical Synthesis – to grow plant-based molecules without actually needing to grow an underlying plant.
The platform is an industrial-scale process that is able to produce plant-based molecules at high levels of consistency and purity.
In addition to the Botanical Synthesis platform, BioHarvest Sciences also has a polyphenol/antioxidant superfruit product under its portfolio, called VINIA. VINIA is a red grape powder that has the same benefits of red wine consumption but without the sugar, calories and alcohol intake of wine.
BioHarvest Sciences has a market capitalization of $146.52 million and a share price of $8.45.
Gensource Potash is another Saskatoon-based agriculture company that has a goal of producing sustainable potash for the future.
Under its business plan are two key segments, including technical advancement and vertical integration.
The company’s technical advancement pillar is focused on constructing clean, scalable, efficient and sustainable mines.
Under Gensource Potash’s vertical integration streamlines the supply chain by partnering with the end-user, which is the agricultural producer.
Gensource Potash currently has a market capitalization of $42.73 million and a share price of $0.095.
Verde AgriTech is a Singapore-based agricultural technology company that produces potash fertilizers.
The company is fully integrated in that it mines and processes its main feedstock from its 100 per cent owned mineral properties. From there, Verde sells and distributes the product.
Verde AgriTech is also licensed to produce up to 2.8 million tons per year of its multi-nutrient potassium fertilizers, K Forte and BAKS, sold under the name Super Greensand all around the world.
The company became Brazil’s largest producer of potash by capacity, with a combined measured and indicated mineral resource of 1.47 billion tons at 9.28 per cent potassium oxide and an inferred mineral resource of 1.86 billion tons at 8.60 per cent potassium oxide.
Verde AgriTech has a market capitalization of $38.98 million and a share price of $0.71.
With headquarters out of Saskatoon, MustGrow Biologics is an agricultural biotechnology company focused on providing natural science-based biological solutions for crops, including fruit and vegetable cultivation.
Notably, the company is developing a natural, organic technology platform for use in a range of markets, including biocontrol and postharvest food preservation and biofertility.
Biofertility aims to feed the soil with mustard proteins and carbohydrates and organic fertility products, while biocontrol is a natural, organic biopesticide and bioherbicide for soil and postharvest use.
Finally, postharvest biocontrol and food preservation is a biopesticide for storage and food preservation.
MustGrow Biologics has a market capitalization of $38.8 million and a share price of $0.75.
Burcon NutraScience is a Vancouver-based company that develops plant-based proteins for foods and beverages.
Under its portfolio of products areplant-based proteins made from peas, canola, soy, hemp and sunflower seeds, among others. Burcon NutraScience also produces, sells, markets and distributes pulse protein ingredients such as Peazazz and Peazac pea proteins and its canola proteins, Supertein, Puratein and Nutratein.
The company operates a technical centre in Winnipeg where it controls a semi-works production facility with analytical and functionality laboratories to develop novel protein ingredients from plant-based sources.
As of the time of this writing, Burcon NutraScience has a market capitalization of $28.42 million and a share price of $0.205.
Also based out of Vancouver, Affinor Growers is a vertical farming technology company. Affinor Growers develops and supplies vertical farming facilities such as greenhouses, growing towers, automation and cultivation processes.
Notably, the company has designed and developed a vertical farming tower for soil-based growing for strawberry production.
Its vertical farming systems intend to produce products consistently that are free from chemicals, pollutants, hormones, gamma radiation or pesticides.
Thanks to the rotating towers and vertical use of space, the design of the towers enables crop versatility so strawberries, whole head lettuce, kale and spinach can be grown.
Affinor Growers has a market capitalization of $4.21 million and a share price of $0.11.
With headquarters out of Vancouver, Argo Living Soils is focused on producing and developing organic agricultural products. These range from soil amendments, living soils, bio-fertilizers and vermicompost to compost tea kits specifically for high-value crops.
The company’s products notably reduce chemical fertilizer and pesticide use, which leads to cutting costs.
Argo Living Soils also has a key partnership with Connective Global SDN BHD, a company based in Malaysia, to research and develop biochar for agricultural and industrial applications. These biochar-enhanced products are being catered to the Southeast Asian and Middle Eastern markets.
Argo Living Soils has a market capitalization of $2.84 million and a share price of $0.10.
How to buy Canadian agriculture stocks
Just like any other stock, buying Canadian agriculture stocks are straightforward and are primarily listed on Canadian exchanges such as the Toronto Stock Exchange, TSX Venture Exchange and the Canadian Securities Exchange.
With that in mind, investing in agriculture stocks is as easy as follows:
- Choose your preferred stock trading platform, such as Questrade or Wealthsimple where investors can invest independently without financial advice. Investors can sign up for a managed account or with any of Canada’s Big Six Banks, including Royal Bank, TD Bank, Bank of Montreal, Scotiabank, CIBC and National Bank, where someone can monitor your investments.
- Choose the stocks you want to invest in by searching its name or the ticker symbol, but make sure to evaluate the agriculture stock’s business plan and only allocate what you feel comfortable with to keep a balanced portfolio
- Place your order.
- That’s it, you now own an agriculture stock.
- If an online trading platform isn’t for you, other options are available: investors can easily contribute to a registered retirement savings plan and avoid investment taxes through a tax-free savings account.
Risks of investing in Canadian agriculture stocks
The success of the agriculture industry is largely based on production and whether companies are able to deliver products to consumers.
Like any other market, agriculture stocks are not immune to fluctuating markets, so investors should always conduct their due diligence before investing.
That being said, a few things should be considered before investing in agriculture stocks, including:
- The company’s balance sheet
- Whether the company’s revenue has grown on a quarter-by-quarter basis or a year-by-year basis
- The management team and its skillset
- What its return on assets look like
And as always, investors shouldn’t put all their eggs in one basket into one industry. A balanced portfolio is key to reaping the benefits of any industry.
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(Top image: Adobe Stock)