A fungal disease is spreading across corn fields in the U.S. Midwest, threatening this year’s crop.
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Analysts say the fungal disease is reducing what had been forecast to be a record corn crop, and is hurting farmers just as they prepare for the autumn harvest. The situation is pressuring leading agriculture stocks such as Archer-Daniels-Midland (ADM), Deere & Co. (DE), and Scotts Miracle-Gro (SMG).
The disease outbreak is the latest in a series of blows to American farmers in recent years. Farmers in the American heartland have had to contend with low grain prices and rising costs for fertilizer, seed, and other inputs since the COVID-19 pandemic struck in 2020.
Severe Outbreak
The disease outbreak spreading among corn stalks is reported to be the most severe on record. Agriculture experts at Iowa State University recently said that they have never seen a disease outbreak as severe as this year and the situation is likely to upend the autumn harvest and disrupt America’s food supply.
The U.S. Department of Agriculture projected in August that farmers would produce a record-breaking corn yield of 188.8 bushels per acre in 2025. However, an outbreak of the fungal disease “Southern Rust” is spreading rapidly in the Midwest, with some analysts saying it could reduce this year’s corn harvest by as much as 45%.
Is ADM Stock a Buy?
Archer-Daniels-Midland stock has a consensus Hold rating among six Wall Street analysts. That rating is based on one Buy and five Hold recommendations issued in the last three months. The average ADM price target of $60.83 implies 1.23% downside from current levels.
