Reasons to invest in agriculture right now
- August 16, 2022
- 7:15 am
Reasons to invest in agriculture right now.
Investing in agriculture is an ideal way to bring some stability to your assets, especially in this uncertain world.
An industry that matters
Ownership in a farm operation allows investors to learn about the many aspects that go into a real working farm and the hard work that goes into feeding the world.
Long term investment strategy
Farmland is an attractive, long-term investment that has the potential to provide relative resiliency to challenging economic conditions. We believe that farmland is a different kind of asset. It's one that has so many interesting processes and produces a commodity that really matters, food. Visiting your piece of farmland and seeing it for yourself is a unique opportunity that we invite our investors to experience.
More stability than the stock market
Since farmland is uncorrelated with most other major asset classes, it has proven to perform well during challenging economic conditions. Investing in farmland benefits the investor more than just in financial gains. An investment in agriculture has Social and Economic benefits that include keeping farmers in the business of farming, keeping the world fed and clothed, bringing jobs and success to a community and supporting family businesses.
Hedge against inflation
Over time, farmland has proven to have a positive correlation with inflation. More so than bonds, the stock market, and even gold. On average, no investment offers a hedge against inflation like farmland.
Demand for food
By 2050 the world population will grow to over 10 billion people. An additional 3 billion people will enter the middle class causing food demand to skyrocket. With a growing global population and shrinking farmland acreage, the laws of supply and demand are clearly in favor of farmland investing. As a result, farmland has consistently beat other asset classes over time.
They are not making any more land
The U.S. alone loses almost 500,000 acres of farmland a year. That’s a loss of nearly 15,000,000 acres of farmland by 2050.
Sourced by FarmFundr