Which Agricultural ETF Might be Right for You? A Guide for Self Directed-Investors

Agriculture isn’t just essential for human survival; it’s emerging as a timely investment theme. In today’s market, there is renewed interest in real assets, with agricultural ETFs having captured the attention of many self-directed investors. However, determining that agriculture may be worth exploring is only the first step. The next question is often more personal: Which type of agricultural ETF might best align with your strategy?

This guide aims to help you consider that question by walking through the core categories of agricultural ETFs, discussing some of the reasons why they’ve historically attracted attention, and outlining the key considerations that may shape your decision.

Investing in Agriculture: Why It’s Back in Focus

The world’s demand for food continues to rise, and it is projected to grow by as much as 50% by 2050, according to the United Nations. At the same time, agriculture-related commodities have historically offered some insulation against inflation and can behave differently than equities during periods of market stress. For investors looking to diversify their exposure or make targeted moves based on macroeconomic trends, agriculture may represent a compelling opportunity.

Many self-directed investors are drawn to the sector for different reasons. Some seek potential growth from commodity price momentum. Others consider diversification away from traditional asset classes. And some are simply interested in the transparency and tangible nature of commodities themselves. Regardless of motivation, the choice of ETF structure plays a key role in determining the kind of exposure and experience you may have.

The Four Paths to Agricultural Exposure

While all agricultural ETFs aim to provide access to the same overarching theme, how they do so varies significantly. Understanding their nuances may help you consider investments with greater confidence and clarity.

Futures-based Commodity ETFs

The first path leads to futures-based commodity ETFs. These funds are designed to track futures contracts tied to individual crops like sugar, corn, wheat, or soybeans, allowing investors to express targeted views on specific markets. This approach offers transparency and a relatively direct link to price movements, but it also introduces factors like roll yield and volatility. For those who want a focused, tactical position and are comfortable with the potential for price swings, this category may be a fit. Teucrium’s CANE, CORN, WEAT, and SOYB ETFs fall into this category.

Diversified Agricultural Commodity ETFs

Next are diversified agricultural commodity ETFs, which take a broader approach by packaging multiple commodities into a single fund. Rather than focusing on one crop, you’re effectively investing in a slice of the agriculture sector. These funds may appeal to investors who want a long-term holding that may offer inflation sensitivity and could require less active oversight. Funds like the Teucrium Agricultural Fund ETF, ticker TAGS, seek to provide this more balanced, thematic access to the agricultural market.

Agribusiness Equity ETFs

Then there are agribusiness equity ETFs, which shift the focus from raw commodities to the companies operating along the agricultural supply chain—seed producers, fertilizer makers, farm equipment manufacturers, and more. Here, the exposure is indirect and influenced by both commodity cycles and broader equity market dynamics. Investors seeking potential capital appreciation through stock ownership—and who are generally more equity-oriented—may gravitate toward these funds.

Real Asset and Farmland-linked ETFs

Finally, real asset and farmland-linked ETFs offer yet another lens into agriculture. These products aim to capture the value of land, infrastructure, and other hard assets tied to food production. They can be harder to access in ETF form and may overlap with infrastructure or ESG themes, but they may appeal to investors seeking long-term value, income potential, or alignment with sustainability goals.

Making the Right Choice for Your Strategy

No agricultural ETF is inherently better than another—what matters most is how well it fits into your overall investment approach. For short-term, high-conviction trades, a single-commodity ETF may offer the kind of precision and responsiveness you’re after. If you seek to potentially hedge against inflation while maintaining a low-maintenance position, a diversified basket fund might make more sense to consider. If you’re growth-oriented and familiar with equity investing, agribusiness ETFs may provide the exposure you’re comfortable with, while still tapping into agriculture’s broader macro potential.

Of course, practical considerations also come into play. Do you prefer 1099 reporting over receiving a K-1? Are you considering trading or investing? Do you anticipate needing liquidity on short notice, or are you comfortable with a longer-term investment horizon? These questions may help refine your path forward.

Why Many Self-Directed Investors Choose Teucrium

For self-directed investors who value transparency and access, Teucrium offers a specialized approach to alternative markets. Our commodity-specific ETFs—like CANE, CORN, WEAT, and SOYB—are designed to be accessible to non-institutional investors while aiming to avoid the tax complexity that often deters individuals from futures-based exposure. 

Beyond the products themselves, we have built a reputation for empowering investors with clear, jargon-free information about how the agricultural markets work and how different ETF structures behave. That level of support may be especially valuable when venturing into a more specialized asset class like agriculture.

Final Thoughts

Agriculture may not always make headlines, but it remains one of the most fundamentally important and historically resilient sectors in the global economy. Whether you’re seeking to potentially hedge inflation risk, diversify your holdings, or express a particular market view, there is likely an agricultural ETF that aligns with your goals. What matters most is taking the time to match the structure of the ETF to your investment philosophy and having the right resources to support your decision-making process. Ready to explore your options? Visit us here (www.teucrium.com) to compare ETFs and learn more about how each fund works.

The information provided is intended to provide a broad overview for discussion purposes. It is subject to change and should not be taken as financial or investment advice. Teucrium Trading, LLC and Teucrium Investment Advisors, LLC make no offers to sell, solicitations to buy, or recommendations for any security, nor do they offer advisory services.

Important Disclosures and Risks:

The information provided is intended to provide a broad overview for discussion purposes. It is subject to change and should not be taken as financial, tax or investment advice. Teucrium Trading, LLC and Teucrium Investment Advisors, LLC make no offers to sell, solicitations to buy, or recommendations for any security, nor do they offer advisory services.

This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit:

Teucrium Agricultural Fund (TAGS): TAGS | Teucrium

Teucrium Corn Fund (CORN): CORN | Teucrium

Teucrium Soybean Fund (SOYB): SOYB | Teucrium

Teucrium Wheat Fund (WEAT): WEAT | Teucrium

The Teucrium Sugar Fund (CANE): CANE | Teucrium

CORN, CANE, SOYB, WEAT, and TAGS are commodity pools regulated by the Commodity Futures Trading Commission (CFTC). These Funds, which are ETPs, are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder. The funds do not track the spot price of corn, sugar, soybeans or wheat.

Commodities and futures generally are volatile and are not suitable for all investors.

Futures investing is highly speculative and involves a high degree of risk. An investor may lose all or substantially all of an investment. Investing in commodity interests subject each Fund to the risks of its related industry. These risks could result in large fluctuations in the price of a particular Fund's respective shares. Funds that focus on a single sector generally experience greater volatility. Futures may be affected by Backwardation: a market condition in which a futures price is lower in the distant delivery months than in the near delivery months. As a result, the fund may benefit because it would be selling more expensive contracts and buying less expensive ones on an ongoing basis; Contango: A condition in which distant delivery prices for futures exceed spot prices, often due to costs of storing and inuring the underlying commodity. Opposite of backwardation. As a result, the Fund’s total return may be lower than might otherwise be the case because it would be selling less expensive contracts and buying more expensive one. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Diversification does not ensure a profit or protect against loss.

Teucrium Trading, LLC is the Sponsor for CORN, CANE, SOYB, WEAT, and TAGS. PINE Distributors LLC is the Marketing Agent for CORN, CANE, SOYB, WEAT, and TAGS, and is not affiliated with Teucrium Investment Advisors, LLC and Teucrium Trading, LLC.

Past performance is not indicative of future results. Teucrium disclaims any liability for any actions taken based on the information provided in this document.