Lindsay Corporation (LNN) is primarily engaged in the development and sale of irrigation systems that are used to irrigate farmland. In this article I make a bullish case for Lindsay shares. I first establish a bullish case for agricultural commodities with an emphasis on grains. I then discuss why investing in irrigation, particularly the more technologically advanced forms of irrigation (center pivot and lateral move), is an excellent way for investors to profit from the bull market in agricultural commodities. Finally I discuss how Lindsay is uniquely positioned to offer investors the best leverage to the bull market in irrigation systems.

1: The Bullish Case for Agricultural Commodities (Particularly Grains)

While grain prices have been in a bull market for several years, current grain prices, as illustrated by the corn, soybean, and wheat charts provided below, are not much higher than they were during the last commodity bull market in

Credit is losing its potency

QE1 was announced by the Fed on November 25, 2008 and QE2 about two years later on November 03, 2010. On September 21, 2011, the S&P 500 opened at 1,203. The market was expecting another QE announcement that day but the Fed announced Operation Twist instead. The index closed at 1,129 on September 22, 2011, a drop of more than 6% within 48 hours of the announcement. The market has not only come to expect QEs but is also surviving on this unprecedented financing of fiscal deficit. QE3 was announced a little less than one year later on September 13, 2012.

The U.S. is a net importer and a sizeable portion of the new money pumped into the economy is spent by people to buy goods produced outside of the U.S., partially defeating one of the objects of pump priming - that the money be

Jim Rogers has been bullish on agriculture for years now. He stated during an interview with the Economic Times in 2009:

Ten years from now, it may be farmers who will drive the Lamborghinis and the stock brokers will drive tractors or taxis at best.

In order to get into his mind, one first needs to understand the mechanisms driving the commodities market, which is really the "real assets" market that includes agriculture, a very long term chart is in order. Here s one of the CRB interpolated from 1749 to the present.

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What's happening here needs a bit of explanation. It would seem, from 1749 until 1968, the general nature of real asset prices is that they skirt along their floor with periodic spikes. We have long periods of stable prices from 1749-1779, 1789-1812, 1816-1861, and 1870-1914. After 1914 until 1952 things start going