Why Agriculture Should Be Your Next Investment
March 13, 2020
If you are looking to diversify your assets, you need to consider looking beyond the stock market. While real estate and certain business ventures might make for good investments under the right circumstances, there is one area that you might not have previously given any thought to.
Agriculture is an industry that is almost as old as time itself. There are several reasons why investing in this industry might just be the right move for your investment portfolio today.
Ever Increasing Demand
Agriculture as an industry is always going to have its place in the world. In its simplest form, the argument is that while there remain people to feed, food will need to be grown. In this sense, investing in agriculture seems like a no-brainer.
Furthermore, aside from the traditional demand for crops as food, the increasing use of biofuels is constantly upping the demand for certain crops. This fact, along with the, would indicate that the demand for agriculture is only going to grow.
Safer Than Stocks
The stock market has generally been the place where most investors seek to grow their funds. Unfortunately, it has become painfully obvious over time that while investing in stocks can be fruitful, investors should look for other opportunities, away from the Stock Exchange, in order to avoid a total loss in the event of a crash. Agriculture and farming are excellent options for such investing, and might even bethan most of what you can find in the stock market.
That being said, there is always risk involved when it comes to investing. A bad crop yield one year can hurt an investment while demand for a certain type of food might go down another year. Investors in agriculture must take everything into account from natural disasters to pest infestations.
Building a diverse agriculture-specific investment portfolio can go a long way to mitigating these risks. Investing in different crops across different climate areas can result in further protection against risk. Similarly to the stock market, you don’t want to place all your eggs in one basket, so to speak.
As in all other areas where there is the potential to invest, there are experts who study the patterns and projections forso that you can have the best shot at seeing a decent return. Crawford Park Farming, for instance, do just that with the added benefit of gearing investments towards practices.
Good For All Involved
There is a certain level of gratification that can come with making investments into the world of farming. Your investment can help farmers to keep their farms running properly and profitably. Often times these farms have been passed down through generations, so you could be helping to keep a long-standing family business alive.
Furthermore, all people need to eat. By injecting capital into agriculture you are helping to put food on tables all around the world.