Entering 2026, the Canadian agriculture sector faces a mixed outlook, characterized by declining commodity prices for many field crops and rising challenges from geopolitical risks, including new tariffs on key exports like canola and peas to markets like China and India. Despite this volatility, the industry’s long-term resilience is rooted in strong global food demand and a rapid embrace of modernization.
A major trend is the acceleration toward sustainability and precision agriculture, with the Agri-Tech market expected to grow at a CAGR of 12.5% through 2033, driven by the need for greater efficiency and reduced environmental impact. Investment is now pivoting away from just traditional farm gate operations to focus on companies that are best positioned to deliver the necessary productivity gains and technological advancement required for a sustainable global food supply. This includes fertilizer, input suppliers, and Ag-Tech innovators.
What are agriculture stocks?
Agricultural stocks are companies involved in the production and sale of foodstuff commodities, such as wheat, livestock, sugar, soybeans, corn, etc. Also included are companies that produce fertilizer, packaged foods, and agricultural machinery and equipment used in industrial farming.
Agricultural stocks generally fall under the umbrella of the consumer staples sector, which also encompasses the stocks of companies that derive their products and services from the agricultural industry. They include bulk retailers and grocery stores that depend on agricultural companies for produce. Ag stocks may also be classified as basic materials or industrials, depending on the company.
Agricultural stocks tend to be defensive, given the essential nature of their products or services. As a result, they tend to have lower volatility than the overall market. Many of these companies are mature, large-cap, blue chip stocks that pay decent dividends and have strong balance sheets.
The agricultural industry often experiences strong tailwinds during inflation due to rising commodity prices. As food prices soar, agricultural companies can enjoy higher revenues, better margins, and improved earnings, which can translate to a higher valuation and share price.
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Investing in Canadian agriculture stocks
Canadians looking to buy domestic agricultural stocks should begin their search in the consumer staples sector of the Toronto Stock Exchange. From there, it is important to determine if the company under consideration is involved primarily produces foodstuffs or instead deals with equipment /services.
The former derives most of its revenues from growing crops and livestock, whereas the latter is primarily concerned with manufacturing and selling equipment or providing support services. This is important to note as various macroeconomic factors might affect different types of agricultural companies differently.
When considering Canadian agricultural stocks, many of the same considerations for fundamental analysis and valuation that apply to the consumer staples sector should be considered:
- Is the company’s balance sheet healthy? What is the current and long-term debt-to-equity ratio? Is there negative shareholder equity?
- Has the company consistently grown quarterly revenues and earnings year over year? If so, at what rate?
- Are the company’s gross and operating margins positive and ample?
- How does the company’s enterprise value-to-EBIDTA ratio compare with peers in its sector?
- What are the company’s price-to-book, price-to-sales, price-to-free-cash-flow, and price-to-earnings ratios, and how do these compare to peers in its sector?
- What does the company’s return on assets, return on equity, and return on invested capital ratios look like?
- Does the company have a decent cash runway and sufficient cash flow for long-term operations?
Top Canadian agriculture stocks
Here’s a look at some of the top agricultural stocks on the Toronto Stock Exchange:
| Agriculture Company | Description |
| Nutrien (TSX:NTR) | Nutrien provides crop inputs and services to growers and farm centres worldwide. |
| Saputo (TSX:SAP) | Saputo produces, markets, and distributes dairy products under various brands across Canada and worldwide. |
| SunOpta (TSX:SOY) | SunOpta manufactures and sells plant-based and fruit-based food and beverage products worldwide. |
Nutrien
Nutrien (TSX:NTR) provides a variety of agricultural inputs and support services, including nutrients like potash, nitrogen, phosphate, and sulphate; crop protection products like pesticide and seeds; and financial capital. The company primarily operates through a network of 2,000 retail locations throughout Canada, the United States, South America, and Australia.
Nutrien’s strength comes from its unmatched scale in potash, nitrogen, and phosphate production, supported by a massive retail network that serves more than 500,000 growers worldwide. This combination gives the company pricing power, recurring revenue, and a durable moat that holds up even when fertilizer prices cycle lower. Although the stock has spent the second half of 2025 bouncing between the mid-$50s and $60 range, that volatility reflects short-term commodity movements rather than any deterioration in the company’s fundamentals.
Its retail segment is a key stabilizer, generating steady demand for seed, crop protection, and agronomic services regardless of potash price swings. As global food demand rises while farmland remains constrained, Nutrien’s role in supplying essential crop nutrients becomes increasingly important. Long-term catalysts such as tightening export controls and a growing reliance from major importers, support sustained demand, and the company’s excess production capacity positions it well for the next fertilizer upswing.
Nutrien continues to produce strong cash flow, supports a 3.72% dividend, and trades at just 16 times earnings with a forward EV/EBITDA multiple below its historical average. With steady buybacks, a solid balance sheet, and durable long-term demand tied to global food security, Nutrien remains a reliable, buy-and-hold TSX stock well suited for investors seeking stability and long-term growth.
Saputo
Saputo (TSX:SAP) is Canada’s largest dairy producer and distributor, offering a variety of cheese, milk, ice cream, yogurt, butter, cream, whey supplements, and powdered goods under a variety of brands. The company distributes its products worldwide wholesale, focusing on clients in Canada, the United States, Argentina, Australia, and the United Kingdom.
Saputo has quietly become one of Canada’s strongest performers in 2025, delivering over 50% year-to-date returns despite operating in a traditionally low-margin, often overlooked industry. Its global scale and diversified portfolio of dairy products have helped the company navigate volatility and strengthen its fundamentals, making it stand out as an undervalued yet compelling long-term pick.
Recent results highlight this strength. While revenue growth was modest at 1%, Saputo delivered far more impressive gains where it counts: 11% growth in adjusted EBITDA and 13% EPS growth. This reflects a strategic shift toward efficiency and profitability rather than top-line expansion—an approach well suited to a mature, volume-driven sector like dairy processing.
Shareholder returns have also been a key part of the story. With consistent share buybacks, a 2.1% dividend yield, and strong operational momentum, Saputo is generating exceptional total returns. Its scale, efficiency, and disciplined capital allocation suggest that its strong performance could continue well into the future.
SunOpta
SunOpta (TSX:SOY) manufactures and sells prepackaged foods through two segments: plant-based foods and beverages, and fruit-based foods and beverages. The former deals with products that utilize almond, soy, coconut, oat, and hemp; while the latter offers individual and bulk frozen fruits such as strawberries, blueberries, mangos, pineapples, and blends.
SunOpta, a company specializing in plant-based food and beverages, achieved a year of robust revenue growth through the first three quarters of fiscal 2025. This performance was driven by a 16.8% increase in Q3 2025 revenue to $205.4 million, fueled by strong volume across its plant-based segments, including beverages and snacks. The company also successfully returned to profitability in Q3 2025, moving from a net loss to a net earning of $0.8 million, with Adjusted EBITDA also showing double-digit growth.
Despite the positive revenue and earnings momentum, SunOpta’s stock (STKL/SOY) experienced a dramatic decline, falling by over 50% during the past year. This sharp drop was primarily a result of investor concern over operational challenges. The rapid growth in volume placed significant strain on the supply chain, creating bottlenecks and inefficiencies at key facilities, such as the one in Midlothian, Texas, which subsequently compressed the company’s gross margins.
However, the long-term outlook remains focused on the company’s ability to capitalize on the strong underlying demand for its plant-based products. Despite the short-term operational headwinds and stock underperformance, the market is watching closely to see if the company can translate its high volume growth into improved operational efficiency and sustained, profitable financial performance.
Are Canadian agriculture stocks right for you?
Investing in Canadian agriculture stocks is generally regarded as being lower on the risk-reward spectrum compared to flashier higher-growth sectors like technology or communications. Agricultural stocks also tend to have lower volatility and slower revenue/earnings growth, making them a potentially good core investment for defensive investors.