Jim Rogers couldn’t have said it better. As we continue to experience increased inflation in the prices of things, and the threat of a massive global economic turndown. It becomes imperative that the average man not only has multiple sources of income but also a diversified investment portfolio. And what better investment opportunity to look into than investing in farming and agriculture.
Investing in farming is a low-risk investment that not only keeps pace with inflation but also increases in value over the long term. More than that, you also get to give back to the community when you invest in farming. Investing in agriculture means providing support for an entire industry and people. Besides all these, your investments are more secure in farming than they would be in the stock market.
“Agriculture is going to be the big thing in the next 20 years.” – JIM ROGERS, FOUNDER OF QUANTUM FUND, CHAIRMAN OF ROGERS HOLDINGS AND BEELAND INTERESTS, INC.
Unlimited Need
No matter how much less we have in our accounts, we would always need food. We would always need to eat. As populations continue to grow, the need to increase the output of agriculture increases too. In order to satisfy the demands of an additional two billion citizens, the United Nations Food and Agriculture Organization predicts that development will need to increase by up to 70 percent in the next three decades. It’s a matter of lifestyle. And so, you can be assured that you would always have profits when you invest in farming. Though the percentage of profits depends on the type of farm or investment.
More Reliable Than Stock
You invest in a physical plot of land when you invest in agriculture. The value of this land just appreciates, unlike stocks in enterprises. Usually, investing in agriculture is a long-term venture, and so it can take a while to begin seeing returns on it. But you must be patient. Returns on investment can range from 3-5 percent for a commodity-based property, or 10-15 percent for specialty crops, depending on the farm’s location, current commodity prices, and other factors. Experts claim that farmland and timberland are much less volatile than other forms of investment, which means that adding agriculture to your investment portfolio will provide the opportunity for a stable, consistent annual income. Since farming investments are long-term, they can be set up to be held in the family of the investor and passed on to future generations. It is possible to enjoy agriculture investment forever.
Investing in a Community
More than investing in a company, when you invest in farming, you are investing in a community. It works like this, the growing demand for food puts pressure on the bigger companies to get their raw materials from farmers. These farmers are usually a community of people who have farming as their daily source of livelihood. In turn, this form of corporate dedication and higher expectations in the relations between buyers and growers contribute to increased opportunities for investment and the development of the community overall.