Archer-Daniels-Midland Company

ADM: Is Archer-Daniels-Midland Company Halal?

Archer-Daniels-Midland Company

NYSEConsumer DefensiveUS

$76.54

+1.94%

Market Cap: 36.9B

Compliance Status

Not Halal

Screened on Jul 17, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Archer-Daniels-Midland Company (ADM) halal? Not Halal. Based on AAOIFI screening, Archer-Daniels-Midland Company has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

Business activity

Involved in prohibited business activities.

Failed

Company debt

Within the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

21.7% of 30.0% limit

What this means for you

Most scholars advise not holding ADM

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Archer-Daniels-Midland Company

Archer-Daniels-Midland Company (ADM) stands as a major global enterprise in the agricultural sector, focused on the sourcing, transportation, storage, processing, and distribution of a wide array of agricultural commodities, finished goods, and essential ingredients. Its expansive operations span numerous countries, including pivotal markets such as the United States, Switzerland, the Cayman Islands, Brazil, Mexico, and the United Kingdom, alongside a broader international presence. ADM's business is strategically organized into three core divisions: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The company's foundational activities involve acquiring, storing, cleaning, and distributing various agricultural raw materials, including oilseeds, corn, wheat, milo, oats, and barley. Beyond raw material handling, ADM is actively engaged in the global import, export, and distribution of agricultural commodities and feed products, complemented by specialized structured trade finance services. The company's product portfolio is incredibly diverse, serving the food, animal feed, energy, and industrial sectors. Offerings include a comprehensive range of vegetable oils—from crude and partially refined versions (utilized in biodiesel production and industrial applications like chemicals and paints) to salad oils, margarine, and shortening—as well as protein meals. ADM also manufactures a broad selection of sweeteners (such as syrup, glucose, and dextrose), corn and wheat starches, wheat flour, various alcohols (including ethyl alcohol and ethanol), citric acids, corn gluten feed and meal, and distillers' grains. Additionally, it processes specific agricultural products like peanuts, peanut-derived ingredients, and cotton cellulose pulp. Furthermore, ADM develops and supplies an extensive suite of specialized ingredients and solutions for nutrition and health. This segment features natural flavors, sophisticated flavor systems, natural colors, proteins, emulsifiers, soluble fibers, polyols, hydrocolloids, and an advanced line of natural health and nutrition products, encompassing probiotics, prebiotics, enzymes, and botanical extracts. They also provide edible beans, formulated animal feeds, animal health and nutrition products, and offer contract and private label manufacturing for pet treats and foods. Beyond its core commodity and ingredient businesses, ADM functions as a futures commission merchant, delivering commodity brokerage services. It also manages cash margins and securities pledged to commodity exchange clearinghouses and allocates cash as security for certain insurance agreements. Established in 1902, the company's corporate headquarters are located in Chicago, Illinois.

Sector: Consumer Defensive · Industry: Agricultural Farm Products

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 17, 2026

Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

  • Prohibited activity detected: alcohol

Compliance History

Not Halal, unchanged since Jun 2026.

No status changes recorded since we began tracking.

Tracked since Jun 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR

Halal Alternatives in Consumer Defensive

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Frequently Asked Questions

Is Archer-Daniels-Midland Company (ADM) halal to invest in?
Archer-Daniels-Midland Company (ADM) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Archer-Daniels-Midland Company get a F compliance rating?
Archer-Daniels-Midland Company (ADM) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 21.7% (limit 30%); interest-bearing deposits of 2.3% (limit 30%); prohibited income of 2.00% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Archer-Daniels-Midland Company's Shariah verdict?
Archer-Daniels-Midland Company's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Archer-Daniels-Midland Company re-screened for Shariah compliance?
Archer-Daniels-Midland Company (ADM) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 17, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.