Dec. 8 at 8:51 PM
President Trump is set to announce
$12 billion in aid to U.S. farmers, averaging about
$6,300 per farm. While helpful, the impact is modest compared with total U.S. farm income and global farm support, which exceeds
$840 billion annually.
The aid is expected to benefit seed and crop protection makers such as Corteva, Mosaic, and FMC more than machinery manufacturers like Deere, AGCO, or CNH Industrial, as tractors and large equipment are not annual purchases. Processors and packaged-food companies, including Bunge, ADM, Cal-Maine, JBS, General Mills, and Kellanova, may see limited benefits, as profit margins depend more on input-output spreads than absolute commodity prices.
Ahead of the announcement, Corteva shares fell 0.4%, Mosaic rose 1%, and Deere was down 0.6% amid a wait-and-see approach, despite Deere’s aggressive 10% sales growth target for 2025–2030. Overall, investors remain cautious on farm-related stocks.
$CTVA $DE $SPX $DJIA