As inflation continues to rise, the world is currently experiencing a major price shock. Inflation has been felt by all industries, from natural gas to semiconductors to food prices. As food prices continue to rise, agricultural stocks have become the focus of attention.

Since this year, fertilizer stocks in particular have performed extremely well in stock prices.$Mison (MOS.US) $(The world's largest producer of phosphate fertilizer, and the second largest producer of chemical fertilizer in the world),$CF Industrial Holdings (CF.US) $(The world's largest producer of nitrogen fertilizer),$Nutrien (NTR.US) $(The world's largest fertilizer producer), increased by about 99%, 56%, and 53%, respectively.

Among the top 20 agricultural companies by market capitalization in the US stock market, agricultural construction machinery and agricultural inputs account for the vast majority. This is somewhat different from domestic listed agricultural companies, which rank high in market capitalization, mainly aquaculture and trade circulation. It reflects the differences between investors from the two countries in the agricultural enterprise valuation system. Here's a brief introduction to the top 3 US agricultural stocks.

Deere Shares

The world's largest producer of agricultural equipment$DEER Shares (DE.US) $It's up 28% since this year. Increased prices for agricultural products have boosted demand for agricultural equipment. In addition, the need to upgrade and replace old equipment also supports the growth of Deere's performance.

Total crop cash income in the US in 2022 is likely to increase 5.1% year over year due to rising commodity prices. Over the past few quarters, as US exports to China have increased, US customer sentiment has increased. Taking these factors into account, Deere expects net revenue of FY2022 to be between $6.7 billion and $7.1 billion, up from $5.96 billion in FY2021.

Deere, founded by John Deere in 1837 and headquartered in Morin, Illinois, USA, is the world's leading manufacturer of construction machinery, agricultural machinery, and lawn machinery.

In 2021, Deere Co., Ltd. ranked 88th in the top 500 in the US, with operating income of US$44.024 billion and total assets of US$84.114 billion.

caterpillar

Construction machinery manufacturing giant$Caterpillar (CAT.US) $It's up nearly 12% since this year. Caterpillar first began with the manufacture of agricultural equipment. The predecessor was Caterpillar Tractor Company. It was founded by the merger of Holt Manufacturing Company and competitor Best Tractor Company in 1925. It is headquartered in Deerfield, Illinois, and it wasn't until 1986 that it changed its name to the Caterpillar Company that is widely known today.

Currently, the company is a leading global manufacturer of construction machinery, mining equipment, off-road diesel and natural gas engines, industrial gas turbines, and diesel electric vehicles. Its business is concentrated in three main market segments: the construction industry, the resources industry, and the energy and transportation industry. In 2021, Caterpillar's sales revenue reached US$51 billion, with total assets of US$82.8 billion.

Caterpillar has a good history of dividends and has distributed dividends to shareholders every year since its inception. It paid out $2.3 billion in dividends and bought back $2.7 billion of Caterpillar's common stock for the full year of 2021.

Nutrien

$Nutrien (NTR.US) $Headquartered in Canada, it is the world's largest producer of chemical fertilizer. Among them, the production of potash fertilizer and nitrogen fertilizer is the world's first and third largest, respectively, and it is also the second largest producer of phosphate fertilizer in North America.

Russia and Belarus are the second and third largest producers of potash fertilizer in the world. The suspension of potash exports between the two countries puts pressure on the supply side, while Nutrien happens to be the world's largest potash producer, and there is still a large amount of idle production capacity waiting to be released. This means that Nutrien can not only increase potash production, but also have a lot of room for price increases.

Nutrien achieved revenue of US$27.712 billion in 2021, with total assets of US$49.954 billion. The company mentioned in a conference call in the fourth quarter of 2021 that the prospects for global agricultural and crop input markets remain strong, and the company is expected to achieve significant growth in profits and free cash flow this year. Additionally, higher prices due to the tight supply of potash are expected to drive sales and profit margins throughout 2022.