Agriculture ETFs: A Guide to Best Farmland ETF Options for 2024

Agriculture remains the backbone of global food production, offering investors a recession-resistant asset class. Despite disruptions during the COVID-19 period, the sector rebounded strongly as international demand surged, lockdown measures eased, and geopolitical tensions—particularly the Ukraine-Russia conflict—constrained supplies of critical commodities like wheat and fertilizer. While individual agricultural stocks have climbed to historic levels, commodity prices have moderated recently. However, currency headwinds have emerged: fertilizer producers face pressure from a strengthening U.S. dollar, which inflates input costs for buyers in emerging Asian and Latin American markets.

For investors seeking diversified exposure rather than company-specific bets, exchange-traded funds present an elegant solution. ETFs distribute investment risk across multiple holdings while providing convenient market access. Below are three compelling agricultural ETF choices that offer distinct investment angles for 2024.

VanEck Agribusiness ETF (MOO): Equity-Focused Play

The MOO ETF captures the agribusiness sector through a portfolio of equities. Its five largest positions—Deere & Co. (DE), Zoetis (ZTS), Bayer (BAYRY), Nutrien (NTR), and Corteva (CTVA)—represent 35.8% of holdings and span equipment manufacturers, genetic innovation, and nutrient specialists. This allocation balances developed-market exposure with emerging-market opportunities in Brazil and Malaysia.

MOO currently manages $927 million in assets with a competitive 0.53% expense ratio. Historically, the fund has delivered strong returns: 68% over the past decade when adjusted for distributions. The fund trades 34% below its all-time peak and provides an annual dividend of $2.24, yielding 3.1% on a forward basis. This structure makes MOO attractive for investors prioritizing capital appreciation alongside income generation.

Invesco DB Agriculture Fund (DBA): Commodity-Focused Access

For those preferring direct commodity exposure, the DBA ETF offers a basket spanning eight agricultural products: corn, soybeans, wheat, sugar, cocoa, coffee, cotton, and feeder cattle. This diversification hedge protects against inflation while capturing commodity price cycles.

With $780 million in assets under management, DBA charges a 0.91% expense ratio—higher than equity-focused alternatives—reflecting its commodities focus. The fund has rebounded 28% over three years but remains down 27% from historical highs. DBA distributes $0.96 annually per share, translating to a 4.5% yield. This higher income component suits income-focused portfolios despite the elevated fee structure.

iShares MSCI Agriculture Producers ETF (VEGI): Cost-Efficient Option

The VEGI ETF represents the most economical choice, charging just 0.39% in expenses. This fund blends commodity exposure through agricultural equity holdings: Deere & Co., Corteva, Archer-Daniels-Midland (ADM), Nutrien, and Lamb Weston (LW) collectively comprise 45% of portfolio weight.

Managing $149 million in assets, VEGI has posted impressive long-term performance—70% in dividend-adjusted returns since January 2014—despite trading 25% below peak valuations. The fund distributes $0.55 annually per share, yielding approximately 2.7%. For cost-conscious investors willing to accept lower asset bases, VEGI provides compelling value.

Selecting the Best Farmland ETF for Your Strategy

Choosing among these best farmland ETF options depends on investment objectives. MOO suits those pursuing capital growth with emerging-market exposure. DBA appeals to commodity-price believers seeking inflation protection. VEGI attracts fee-conscious, long-term holders prioritizing low costs and steady income.

All three offer meaningful exposure to agricultural fundamentals—global food demand, commodity cycles, and inflation dynamics—providing an efficient alternative to picking individual agricultural stocks.