Cramer's Wild Bull Agriculture Plays
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Date updated:06-05-2007

On the Tuesday 5-29-07 "Mad Money" TV show, Jim Cramer took viewers to the six "wild bull markets."

Right now, he said, the Federal Reserve is on hold, and the economy, while "anemic," is not in a recession. And during economic weakness, the wild bull markets should be the first to recover, Cramer explained. Right now there are six wild bull markets.

The first, Cramer said, is in agriculture. There was a "deeply disturbing" editorial in The New York Times recently about reforming the farm bill. It discussed overhauling agricultural subsidy programs that reward big growers of traditional crops -- phasing them out and "replacing them with a single 'risk-management account.' "

According to the editorial, the bill would divert billions to help specialty crop farmers, and the reforms would spend money on rural conservation and food stamps, Cramer said. However, "thankfully this was just an editorial and not reality."

Cramer said he's confident this "travesty" will be averted and that the bull market in agriculture should stay alive.

There are three stocks he believes people should want to own here.

symbol name last price % change open
  • +
  • DE
    Deere Co
  • $53.70
  • +2.70%
  • $51.68

The first is Deere (DE) as an agricultural machinery play. This stock, Cramer said, is "money in the bank." He considers it the best of breed in the farm machinery business and said it is "quite well-priced." On 6-5-07, UBS came out and said that tractor sales worldwide are accelerating. So there goes Deere (DE) again!

People owning DE also tend to own: CCATFNMFREGEKOLLY

TheStreet.com Rating: B- What is this?

  • +
  • MON
    Monsanto Company
  • $80.87
  • +0.92%
  • $80.50

The next to own in the agricultural space is Monsanto (MON) a biotech company that makes seeds, Cramer said. Even though this stock seems expensive, with 24% growth Monsanto is "cheap," he said.

People owning MON also tend to own: CALCOPDSLHALMOSHLDSTX

TheStreet.com Rating: C+ What is this?

  • +
  • SQM
    Sociedad De Chile
  • $38.98
  • +0.36%
  • $38.89

Finally Chemical & Mining Co. of Chile (SQM) is the one to bank on as a fertilizer play in the agriculture sector, Cramer said.

People owning SQM also tend to own: AIGARDIATIBTUCSCOGSJNJ

TheStreet.com Rating: B What is this?

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