Food Demand Fuels Deere
There are 2 billion people entering the global economy, Deere CEO and President Bob Lane pointed out to Cramer Thursday. Developing countries like China, India and the former Soviet satellites are making – and spending – more. So where’s all that cash going?
People just want to eat better, Lane said. It’s the top concern when their earnings increase. Deere machines, which Cramer called the industry’s gold standard, are aiding the process.
The stock’s up 149% since Cramer first recommended it in 2005. The food demand is “the real engine” of that growth, Lane said, and “the desire to grow energy” – meaning the move to ethanol and biodiesel – turbo charges the engine.
Of all Cramer’s Fab Five agriculture stocks – Monsanto, Mosaic , Potash, Agrium and Deere – Deere’s his favorite. “Any time it’s below $100,” he said, “you have got my blessing to buy it.”
Watch the video for CEO Lane’s thoughts on NAFTA, what could happen to Deere if grain prices peaked and more.
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