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3 Market Winners From A Bipartisan Farm Bill In 2018

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3 Market Winners From A Bipartisan Farm Bill In 2018
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A farm bill is likely to move in the first quarter of 2018, according to Rep. Collin Peterson, a Minnesota Democrat and ranking member of the House Agriculture Committee, and a spokesperson for the committee's chairman.

The proposals include reauthorizing a grant program that compensates landowners who open their property to public access. Legislation to renew the Voluntary Public Access and Habitat Incentive Program was introduced earlier this month by Republican Sen. Steve Daines and Democratic Sen. Michael Bennet.

The farm bill, passed once every five years or so, is a tool used by the federal government to regulate policy surrounding agriculture and food. The bill's importance lies in the impact it has on international trade, environment, food safety and rural communities.

Peterson has been vocal on expanding the conservation and reserve program, or CRP, which allows for payment of an annual rent to landowners for their idle fragile land for at least 10 years, according to the publication Successful Farming

He has been seeking an acreage expansion in the program from the current 24-million-acre ceiling to 32 million acres.

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Analyst Expects Farm Bill In 2018 

Investors can look forward to a little bit of positive news for agriculture interests and rural economies generally, according to Height Securities. 

"We believe Congress will pass a new Farm Bill in 2018, potentially providing key support to growers and the agriculture sector as ag commodity prices remain low," the firm said.

Possible beneficiaries from the bill include the following companies, according to Height: 

Biosciences

  • Monsanto Company (NYSE: MON)
  • Archer Daniels Midland Company (NYSE: ADM)

Equipment 

  • Deere & Company (NYSE: DE)

Related Link:

Will Ag Stocks Flourish Now That California's 5-Year Drought Is Officially Over?

Latest Ratings for DE

DateFirmActionFromTo
Jun 2018CitigroupMaintainsBuyBuy
May 2018UBSUpgradesNeutralBuy
May 2018Evercore ISI GroupUpgradesIn-LineOutperform

View More Analyst Ratings for DE
View the Latest Analyst Ratings

Posted-In: Height SecuritiesAnalyst Color Politics Analyst Ratings Media Trading Ideas General Best of Benzinga

 

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