Geopolitical concerns over the Russian invasion of Ukraine are just the latest in a series of macro events that are pushing agricultural stocks higher. Supply chain issues, rising energy costs and rising global demand are driving higher commodity prices and therefore higher incomes for US agriculture.
The United States Department of Agriculture (USDA) reports that net farm income increased by $23.9 billion in 2021, a 25% year-over-year (YOY) increase. iShares MSCI Agriculture Producers ETF (NYSEARCA: VEGI) recently hit an all-time high. This is not surprising considering that Ukraine and Russia together export 29% of the world’s wheat.
While investors have upped the agricultural games from producers to cultivators to ancillary games as the industry booms, some of these stocks may be overweight. As noted, VEGI has reached an all-time high, so perhaps it’s time to look at alternative farming games that still have wiggle room based on a rise in commodities.
Knowing that money can flow to alternative farming games, here are sub-$5 stocks in the radar space as they can bring bigger gains at a faster rate than their bloated blue chip counterparts.
HEMP ON WHEAT
Generation Hemp, Inc. (OTCMKTS: GENH) is one of the most interesting ways to play in this agricultural bull market. GENH is a midstream hemp cultivation company with several verticals using hemp. The industrial hemp market size is expected to reach USD 16.75 billion by 2030, registering a CAGR of 16.8% according to Research and Markets.
GENH is probably the best pure hemp game under $1.
When it comes to inflationary food prices, especially wheat, with Ukraine and Russia accounting for nearly 30% of global wheat production, hemp is an intriguing substitute. Wheat germ and hemp seeds are high in calories, however, hemp seeds actually contain 54% more calories than wheat germ – wheat germ contains 360 calories per 100 grams and hemp seeds contain 553 calories. For macronutrient ratios, wheat germ is much heavier in carbs, much lighter in fat, and similar to hemp seeds for protein. Wheat germ has a macronutrient ratio of 24:54:23 and for hemp seeds 21:6:73 for protein, carbohydrates and fat from calories.
Generation Hemp, Inc. (OTCMKTS: GENH) operates through its wholly owned subsidiary GENH Halcyon Acquisition, LLC, from a facility located in southwestern Kentucky.
GENH’s modular drying operation, using four belt dryers. Each dryer is equipped with variable temperature settings that allow for a more efficient drying process while protecting the valuable cannabinoid and terpene properties of the plant. These modular systems can produce approximately 1,200 pounds of evenly dried hemp per hour.
In 2020, the company processed over 6 million pounds of wet hemp for various customers in Kentucky and Tennessee and was expected to have dried approximately 11 million pounds of wet hemp in 2021.
BIOTECH IN AGRICULTURE
Arcadia Biosciences (NASDAQ:RKDA) is another alternative way to play on rising wheat prices. It specializes in the development of health and wellness products. Earlier this year, he received Notice of Allowance for a US patent titled “Wheat having resistance to glyphosate due to alterations in 5-enol-pyruvylshikimate-3 phosphate synthase.” Recently, the company published a paper titled “Methods of Increasing Fiber in a Grain of Wheat”. While wheat alternatives like hemp are one way to play on rising prices, a biotech company looking to increase production from growing wheat like RKDA is another option.
Another alternative biotech game that helps to maximize agricultural production. Proper pest management is the key to optimal crop production.
Evogene Ltd. (NASDAQ: EVGN) is a diversified biotech stock with some agricultural innovations in its portfolio. AgPlenus Ltd. creates a new mode of action (MoA) herbicide – in 2022 – the company plans to enter into additional collaboration agreements and expand its dataset for APTH1, AgPlenus’ new lead MoA protein for the development of new herbicides.
Evogene’s (NASDAQ: EVGN) other agrobiotech subsidiary, Lavie Bio Ltd., is working on an inoculant (bio-stimulant) for spring wheat. At the end of 2021, Lavie Bio began marketing its result™ inoculant aimed at improving yield based on microbes. Initial product penetration into the spring wheat market is planned for the upcoming 2022 planting season and will be limited to target regions in North Dakota. The company is also working on a fruit rot bio-fungicide program – Following the completion of three consecutive years of vineyard trials, conducted in Europe and the United States, Lavie Bio has prioritized LAV311 as its lead candidate for final development and submission of a regulatory filing, which is expected to be filed with the US Federal Environmental Protection Agency (EPA) and California EPA in 2022.
Calyxt (Nasdaq: CLXT) is a plant-based synthetic biology company. The company leverages its proprietary PlantSpring™ technology platform to engineer plant metabolism to produce innovative, high-value plant-based chemicals for use in customer materials and products. As plant-based solutions, the company’s synthetic biology products can be used to help customers achieve their sustainability goals and financial goals. Calyxt’s diverse offerings are primarily delivered through its proprietary BioFactory™ production system.
ESG AGRICULTURAL GAMES
AgroFresh (NASDAQ: AGFS) is an AgTech playhouse whose mission is to “prevent food loss/waste and conserve the planet’s resources by providing a range of science-based solutions, data-driven digital technologies and services high quality customer”. AGFS has a portfolio that includes plant-based coatings, equipment and proprietary solutions that help improve the freshness supply chain from harvest to home.
Generation Hemp, Inc. (OTCMKTS: GENH) is also an ESG play as it uses its hemp hurd to create a greener crypto mining sector. has partnered with Massachusetts-based Cryptech Solutions, ASICS’ largest volume reseller in North America, to build “green energy” factories and Bitcoin mining farms that use hemp as their primary source of energy. energy. Last Friday, GENH announced the first bitcoin mining facility through a joint venture “JV” to be housed at Generation Hemp’s 48,000 square foot facility in Hopkinsville, Kentucky, which also houses a mining operation. hemp drying through its wholly owned subsidiary GENH Halcyon Acquisition.
Be sure to start your research today.
More information about GENH here: https://capitalgainsreport.com/2022/03/08/generation-hemp-uses-hurd-to-clean-spills-and-comfort-animals/
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