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Carson Wealth Management CEO Ron Carson on how investors can profit from companies that support the agriculture industry.
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But my next guest has first hand experience are both investing and farming he owns a family farm north of Omaha Nebraska.
And -- -- And -- how about that and he does it to create an investment strategy and she's going to outline for you right now -- Ron Carson Carson wealth management group founder and CEO joining us in a Fox Business exclusive.
Looking at what you just soften that -- find what's happening on your soybean farm in have you been able to continue to capitalize on sort of the price contrail.
That has been left from the drought high prices.
It is -- you gotta be pretty nimble and your marketing been pretty fortunate.
And farming has changed so much less me a look at yell at the picture there made me wanna be back on the farm that.
We think you -- parts of the drought was a compelling story a look at the incremental.
Increase in the Chinese emerging markets diet.
They -- -- five you're just moved from rice to -- the equivalent.
Of what Canada produces got to come with a new candidate he shares those Warren Buffett says finding -- -- -- front of it.
Before the drop we thought this was a very powerful trend we had record low stocks going into this year and it's going to be crisis -- thing coming out of it.
So what you're saying is drought or no drought they're still massive demand so tell people how to capitalize on that you brought for names along we have.
Let's start with -- which like -- deer are -- in -- desert that it farm equipment companies but why -- over -- your question.
We owned deer in the portfolio and AGCO we own -- one of our strategies looking to add it to another strategy that really looking out.
How inexpensive AGCO is our analysts are telling us 75%.
Undervalued and we're really looking for companies are gonna benefit from.
Productivity gains mean need this big equipment you need to have equipment that's gonna allow -- to keep your costs on a per -- per acre basis.
Both -- and Banco do that just so happens we think tank code is a really compelling valuation here.
What well below what we think it's intrinsic.
Value it's just PE is about twenty but -- up 18% year over year you then you get to the fertilizer in the engineering type of companies like the Monsanto's and of course the potash -- of the world yes Monsanto's -- game changer when you look at.
What's happened -- -- -- mean even on our own family farm we used to have to.
Hire workers to go on cut the -- -- -- that we got ready roundup ready soybeans -- -- just spray it makes it very efficient reduces the cost reduces.
The ability to really south of moisture which would have dinner and that's from the -- -- -- -- Monsanto product.
And you.
Not inexpensive company but not an expensive we think it has real legs here -- technically Monsanto looks really good in her as well as those -- while Monsanto's up 37% your for your potash is down 11% gets interesting there is some debate whether or not.
The drop was gonna cause -- potash has had previously been applied to the fields actually sink you know we're gonna need -- the next year.
And so potash and in my -- to legacy runs family farm debt DO he puts potash on every single year because he's.
He's a chart as he's figured out just exactly the incremental return that we get.
And so we think it's a short term weakness and potash technically potash social look good.
Fundamentally though because that's a duopoly they really controlling their pullout we have 22 -- what your super secret final stock pick.
Well super secret would be -- of other -- right out of trouble we'd like troubling me every -- that what if that's what troubles in the navigation business precise -- -- -- Inch precision we can run our com -- Through satellite or come -- has the guidance systems that can tell us how many -- how many bushels were taken off particular area.
I mean it's very sophisticated the farmer of today if not the form of yesterday you've got to be at the yield strong technology.
Marketing.
-- deal to get a feel for what's gonna happen as far as what you should plant when you should rotate to big business.
It's can imagine this guy out of this is minutes later -- Barbara.
-- that -- -- brought out well thank you thank you please come again I will Ron Carson saying don't going to specific grains going to the stocks that help the green's growth.
