Why You Should Consider Investing in Agriculture
Over half of all Americans invest their hard-earned money in the Stock Exchange, but is that really the best place for your money or are you missing out on something more lucrative?
Here we take a look at agriculture and the investment opportunities that you could be missing out on.
There are many ways in which agriculture has a positive impact on the environment, including the preservation of ecosystems, creation of habitats, boost of soil fertility, and prevention of soil erosion. But did you know that it can also positively impact your back pocket?
Agriculture is the science or practice of farming, including cultivation of the soil for growing of crops and the rearing of animals to provide food, wool and other products. Agriculture is the key development which allowed humans to settle in one place, giving rise to cities all over the world.
Why Your Investment Is Good for Agriculture
Farming is a learned skill that is handed down along with farms generation after generation. Supporting farms reduces the threat of foreclosure from the bank and allows farmers the capital to maximize their yields and productivity.
There is also a push for farmers to follow sustainable farming practices. This consists of meeting the needs of the current population without making future generations compromise to meet those needs. The growing consumer demand for sustainable food is pushing big corporations (think Starbucks) to small holders for raw materials. This type of corporate commitment and higher standards in the connections between buyers and growers, is in turn leading to increased investment opportunities.
Why Investing in Agriculture is Good For You
Investing in agriculture is less risky than investing in the Stock Market, as you are investing in a physical plot of land whose value will only appreciate over time. However, it is a long-term venture and your returns will vary depending on the farm’s location, current commodity prices and other factors, ranging from 3-5% for commodity-based land, or 10-15% for specialty crops.
The consumption of protein throughout the population is shown to be steadily increasing. Therefore, becoming an AG investor in a commodity like almonds, for example, is appealing to current health trends. Crawford Park Farming offer investment opportunities at multiple orchards that practice sustainable farming.
Also, worth taking into account is the $1 trillion that the U.S. Government is due to spend on agricultural subsidies over the next decade. That is an increase of 56% from the last time money was injected into agriculture to address issues. This cash injection should help to increase the return on your investment.
As populations continue to grow, so does the need to increase agriculture production. The United Nations Food and Agriculture Organization estimates that production will need to increase by up to 70% in the next three decades in order to meet the demands of an extra two billion people.
This suggests that investing in agriculture can be a strong and fruitful venture, not only for you, but for a community, as land continues to appreciate year after year.