Agriculture is an investment

Investing in Agriculture - Focus on the Positive Contribution?

Advantages: infinite resources - never running out of demand

As already mentioned, the population and thus the need for food is growing steadily. Agriculture must respond accordingly by:

  • gets bigger
  • becomes more efficient
  • becomes more profitable

After all, it is these and renewable resources that the world so desperately needs. When properly managed, agriculture is a never-ending source of food. This holds enormous growth potential, which speaks for an investment in organic agriculture. Humanity will always need food and energy.

That speaks against investing in agriculture

An investment in agriculture is a solid investment. Anyone who wants to invest in real estate knows the advantages of such forms. However, one can hardly compare the two investments in terms of risks and interest income.

Areas are finite

In every country there is agricultural land that could be used. But many nations are taking away the necessary space by building roads, parking lots and buildings. Without new ideas for innovative land development, this will limit growth enormously.

Dependence on external circumstances

As with any form of investment, it is too unsafe to bet your money on just one horse. However, individual farms are particularly uncertain when it comes to agricultural investment. Almost all farmers are dependent on the weather. Only when this changes through new innovations can the risk decrease. The following external factors play an important role in agriculture, which farmers can rarely influence:

  • Enough water: artificial irrigation of the fields in extreme weather conditions is very costly
  • Right amount of sun: no drought, but not too little sun either
  • Disease infestation in animals and plants: can lead to complete crop failures or cost the lives of an enormous number of livestock
  • Breakdowns of machines: In the case of defective or old devices, a new acquisition is expensive and often takes a long time. During this time, farmers cannot continue to work effectively.