The 2025 Agribusiness Value Creators Report: A Balanced Approach to Harvesting Returns
Agribusiness returns are low and cyclical, and the top performers stand out by managing margins, costs and capital through the commodity cycle and creating value across several TSR dimensions rather than riding high prices.
Summary
Across 38 agribusiness companies, median TSR for 2020 to 2024 was 4%, double the prior period but behind nearly every other sector, as the pandemic, the war in Ukraine and weather drove price volatility. Revenue grew a median 8% yet multiples fell 5%, reflecting how investors price in the cycle so growth and valuations move in opposite directions. The top ten earned a median 15%, led by Deere at 21%, by managing margins and costs and delivering across TSR dimensions. Trade, biofuels and tropical agriculture will shape the next cycle.
Editor's opinion
In a volatile commodity-driven industry, the best performers create value consistently by managing margins, costs and capital allocation through the cycle.
Key concepts
Agribusiness TSR · Growth-multiple trade-off · Commodity super-cycle · Margin and cost management