The Mosaic Company (MOS) and Intrepid Potash, Inc. (IPI) are two prominent players in the agricultural inputs industry. MOS in Plymouth, Minn., produces and markets concentrated phosphate and potash crop nutrients. The company operates through Phosphates; Potash; and Mosaic Fertilizantes segments. It also provides nitrogen-based crop nutrients, animal feed ingredients, and other ancillary services. In comparison, Denver, Colo.-based IPI produces and sells potash and langbeinite products internationally. The company sells potash primarily in the agricultural, industrial, and animal feed markets.
Supply chain disruptions, labor shortages, and adverse weather have caused food prices to hit multi-year highs last month. Most countries have stopped exporting crop nutrients to address their domestic supply-demand imbalance. Given the strong global demand for food, companies engaged in the agricultural space should benefit. Furthermore, technological advancements in seed science and sustainable agricultural practices brighten the industry’s long-term growth prospects. Investor interest in this space is evident in the iShares MSCI Global Agriculture Producers ETF’s (VEGI) 6.4% returns over the past six months versus the SPDR S&P 500 Trust ETF’s (SPY) 1.1% returns. So, both MOS and IPI should benefit.
