As the global population continues to rise, so too does the demand for produce — and farmers around the world will have a big call to answer. With such stats, it’s time to consider the idea of expanding your investments into agriculture. It has the potential to add to your bottom line, but also greatly aid farmers and the millions of people they supply goods to. Interested? Here’s an in-depth look at why you should consider an investment in agriculture.
The Basis of Agriculture
The agriculture industry is expansive. It includes everything from just cultivating soil to growing essential crops such as corn, beans, wheat, apples, peanuts, grapes and more. If you can purchase it in the produce section, someone grew it. In addition, farmers also care for several animals to provide other goods, such as leather from cattle and wool from sheep. Therefore, the definition of what constitutes as a farm can vary: Look at a salmon farm, a cranberry bog and a tobacco field. All have their differences, yet all three still qualify as farms and considered part of the farming sector.
How Investing Helps
An investment could aid farmers in several ways. When you provide support to farms, you also support family businesses that possibly have been passed down from generation to generation but need further investment to stay active in the business. Your investment may provide further aid for farmers to expand and diversify their yield, or help encourage more eco-friendly farming practices. Furthermore, with green farming, you are not only emboldening the many families involved in agriculture but future generations of farmers as well. An increase in investments can also create more pathways for new and diverse farmers — particularly women and people of color — to join the industry.
The Risks
Investing in agriculture can carry less risk than buying stocks because you are investing money into an actual piece of land. The value of any physical property should increase over time. Additionally, because food demand is always increasing and the cost of food tends to rise over time, your financial input could potentially serve as protection against inflation. An investment in agriculture would also further diversify your portfolio without any guilt of where your money is possibly going.
Projections for Investments
Based on current projections, even if two billion people are added to the population within the next three decades, food production will have to rise by 70% to meet the demand. That alone is an astonishing amount of output from one industry. Investing in this field could not only improve your bank account and assist local farmers but also positively impact the world.
For more information about agricultural investments and potential trends to look into, look through the accompanying infographic.
