Investing US Agriculture - Deere and Company

While the U.S. economy is still recovering from the disaster caused by the financial industry, an industry is actually enjoying a surprising boom this year.  According to the BusinessWeek article in October, U.S. agricultural exports actually increased 14% to $69.8 billion in the first 8 months of 2010 compared to previous year.  The farmers have always been the ones that need the government subsidizing due to falling price amid competition from Russia and Ukraine.  The same competitors that caused the price drop before helped the price surge as both countries are suffering one of the worst droughts.  So the global demand of grains turned to the other side of the world - the fertile farmlands in Midwest and South U.S.

So with such surged in U.S. agricultural products who would be the one that benefit the most?  One of the industry to benefit is the farm equipment maker.  Deere & Company (NYSE:DE) is the largest farm equipment maker of the world.  With $20 billion in net sales of equipment, the company would be a winner in this global demand of US crops.  With market cap of $35 billion, shares of Deere & Company are trading at $84 per share with P/E ration of 19.3 and should continue to rise.  The technical chart points to more upside as both 50 day and 200 day moving average are going up.  The company also provide divided yield of 1.7%.  This is definitely a quality stock to invest into.