Dj Trump Will Give Farmers $12 Billion. The Stocks That Could Get A Boost - Ones That Won'T. - Barrons.Com

Al Root

President Donald Trump is going to help American farmers. It will help American investors a little bit, too.

Trump will announce $12 billion in aid to U.S. farmers, who are beset by rising costs and trade uncertainty.

The money is nice, but it doesn't amount to much. It works out to about $6,300 per farm. There are about 1.9 million farms in the U.S., according to the Department of Agriculture, which estimates 2025 farm income of about $180 billion, or about $95,000 per farm.

The U.S. and other countries have a history of supporting farmers. Annual support to farmers tops $840 billion globally, according to the Organization for Economic Cooperation and Development, which tracks spending across 54 countries. Payments in the U.S. are expected to top $40 billion in 2025.

There are good reasons to support farmers. Farming requires an enormous amount of working capital each year, and crops are subject to the whims of the weather. U.S. farming is an export business. America is one of the largest grain producers in the world.

An extra $12 billion in the pockets of farmers could flow through to several stocks. Farmers buy products such as fertilizer, seeds, and crop protection from the likes of Mosaic, Corteva, and FMC. They also buy machinery from Deere, AGCO, CNH Industrial, and others.

The aid money is likely to benefit seed and crop protection makers sooner than machinery makers. Tractors are big purchases that aren't bought every year; one year of financial support might not make a difference there.

Ahead of the expected announcement, Corteva stock was down by 0.4%, Mosaic was up 1%, and FMC was down 1.6%.

Deere and AGCO shares were mixed. AGCO stock was up 0.3%.

Deere shares were down 0.6%, hovering around $473 after trading as high as $488.99. Its investor day had more to do with the move than farm subsidies. Deere management said the company was targeting 10% sales growth between fiscal year 2025 and 2030. Wall Street estimates don't go out that far; however, analysts project about 8% growth between fiscal year 2025 and 2028. Management's goal looks aggressive, and investors appear to be taking a wait-and-see approach.

Then there is the next layer of companies in the farming ecosystem. Processors such as Bunge and ADM, grain buyers such as egg producer Cal-Maine and meat producer JBS, and packaged-food companies including General Mills and Kellanova might see some less obvious benefits.

Packaged-food stocks don't typically react to farm support. Grain costs are an important but relatively small piece of profit margins.

Grain prices matter more for processors and meat producers, but investors have to pay attention to spreads in those businesses — what those companies pay for inputs and sell as outputs matters more than the absolute price of corn or soybeans.

Shares of grain buyers were taking the news of extra support the worst. Shares of Bunge and ADM were down more than 1% each.

Cal-Maine shares were off 0.2%, while JBS stock was off more than 4%. That would indicate investors expect grain prices to rise, but demand for meat and other products stays flat. That hasn't happened yet. Benchmark corn futures were down 0.2% in midday trading on Monday. Soybean prices were down 1.1%.

The Consumer Staples Sector Select SPDR exchange-traded fund was down 0.7%, not too much different than the broader market. The S&P 500 and Dow Jones Industrial Average were down about 0.4%.

Of the stocks mentioned, Wall Street is lukewarm on most. The average Buy-rating ratio for shares in the S&P 500 is about 55%. The average Buy-rating ratio for food stocks is about 40%. The only food stocks listed with average Buy-rating ratios are Deere, with 56%, along with Bunge and Corteva, which have ratios of 73%. Kellanova has no buy ratings among its 16 analysts, according to Bloomberg.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

BATTLE CREEK (dpa-AFX) - Monday, Mars, Inc., a company dealing with pet care, snacking and food, announced that it has received unconditional approval from the European Commission for its pending acquisition of Kellanova (K).

Along with this recent development, all required regulatory approvals and clearances for the pending transaction have been obtained.

As per the deal, Kellanova's portfolio of snacking brands, which includes Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, RXBAR and Kellogg's international cereal brands, will join the existing Mars Snacking portfolio. The combined business is expected to generate around $36 billion in annual revenues.

Upon closing of the acquisition, Kellanova's common stock will be delisted and will cease trading on the New York Stock Exchange.

The deal is expected to close on December 11, 2025.

Currently, K is trading at $83.44, up 0.37 percent on the NYSE.

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Kellanova (K) filed a Form 8K - Regulation FD Disclosure - with the U.S Securities and Exchange Commission on December 08, 2025.

As previously disclosed, on August 13, 2024, Kellanova, a Delaware corporation (the "Company"), entered into an Agreement and Plan of Merger (as it may be amended, supplemented or otherwise modified in accordance with its terms, the "Merger Agreement") by and among the Company, Acquiror 10VB8, LLC, a Delaware limited liability company ("Acquiror"), Merger Sub 10VB8, LLC, a Delaware limited liability company and a wholly owned subsidiary of Acquiror ("Merger Sub"), and, solely for the limited purposes specified in the Merger Agreement, Mars, Incorporated, a Delaware corporation ("Mars"). The Merger Agreement provides that, among other things, upon the terms and subject to the conditions set forth therein, Merger Sub will merge with and into the Company (the "Merger"), with the Company surviving as a wholly-owned subsidiary of Acquiror.

On December 8, 2025, the Company and Mars issued a joint press release announcing that Mars has received unconditional approval from the European Commission for the pending Merger. As a result, Mars has now received all required regulatory approvals and clearances for the pending Merger.

The parties intend to close the Merger on December 11, 2025. Completion of the Merger remains subject to the satisfaction or waiver of customary closing conditions set forth in the Merger Agreement. Following the Merger, the Company's common stock will be delisted from the New York Stock Exchange and shares of its common stock will cease to be publicly traded.

A copy of the press release is furnished with this Current Report on Form 8-K (this "Report") as Exhibit 99.1 and is incorporated herein by reference. The information furnished with this Item 7.01, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.

Forward-Looking Statements

This Report includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act, each as amended, including statements regarding the Merger, the expected timetable for completing the Merger and any other statements regarding the Company's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: the timing to consummate the Merger and the risk that the Merger may not be completed at all or the occurrence of any event, change, or other circumstances that could give rise to the termination of the Merger Agreement, including circumstances requiring a party to pay the other party a termination fee pursuant to the Merger Agreement; the risk that the conditions to closing of the Merger may not be satisfied or waived; potential litigation relating to, or other unexpected costs resulting from, the Merger; legislative, regulatory, and economic developments; risks that the Merger disrupts the Company's current plans and operations; the risk that certain restrictions during the pendency of the Merger may impact the Company's ability to pursue certain business opportunities or strategic transactions; the diversion of management's time on transaction-related issues; continued availability of capital and financing and rating agency actions; the risk that any announcements relating to the Merger could have adverse effects on the market price of the Company's common stock, credit ratings or operating results; and the risk that the proposed transaction and its announcement could have an adverse effect on the ability to retain and hire key personnel, to retain customers and to maintain relationships with business partners, suppliers and customers. The Company can give no assurance that the conditions to the Merger will be satisfied, or that it will close within the anticipated time period.

All statements, other than statements of historical fact, should be considered forward-looking statements made in good faith by the Company, as applicable, and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this Report, or any other documents, words such as "anticipate," "believe," "estimate," "expect," "forecast," "goal," "intend," "objective," "plan," "project," "seek," "strategy," "target," "will" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the beliefs and assumptions of management at the time that these statements

were prepared and are inherently uncertain. Such forward-looking statements are subject to risks and uncertainties that could cause the Company's actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties, as well as other risks and uncertainties that could cause the actual results to differ materially from those expressed in the forward-looking statements, are described in greater detail in the Company's reports filed with the United States Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K for the year ended December 28, 2024, subsequent Quarterly Reports on Form 10-Q, Current Reports on Forms 8-K and other SEC filings made by the Company. The Company cautions that these risks and factors are not exclusive. Management cautions against putting undue reliance on forward-looking statements or projecting any future results based on such statements or present or prior earnings levels. Forward-looking statements speak only as of the date of this Report, and, except as required by applicable law, the Company does not undertake any obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made.

The full text of this SEC filing can be retrieved at: https://www.sec.gov/Archives/edgar/data/55067/000119312525310707/d49614d8k.htm

Any exhibits and associated documents for this SEC filing can be retrieved at: https://www.sec.gov/Archives/edgar/data/55067/000119312525310707/0001193125-25-310707-index.htm

Public companies must file a Form 8-K, or current report, with the SEC generally within four days of any event that could materially affect a company's financial position or the value of its shares.