Investing is the act of allocating funds to an asset or committing capital to an endeavor (a business, project, real estate, etc.), with the expectation of generating an income or profit . In colloquial terms, investing can also mean putting in time or effort – not just money – into something with a long-term benefit, such as an education.
Agriculture is one of the oldest industries in the world, so it is not a big surprise that there are a number of different ways to approach investing in it.
Like all sectors, agriculture is really a spectrum of activities that overlap with each other and even with other sectors. The simplified version is that producers grow crops and raise livestock to sell to processors, who prepare and package the product before it ends up on the grocery store shelves. Producers and processors are in the agriculture sector, while the retailers are part of the retail sector – nice and clean.
However, the reality is that the agriculture sector also holds agribusiness companies. There is no hard-and-fast rule on what constitutes an agribusiness, but if a company is pulling half of its revenue directly or indirectly from agriculture, then it is generally considered an agribusiness. Futures offer investors an easy way to play price changes for agricultural products, without actually buying a farm and putting in all the hard work. That said, futures may be a bit intimidating for a beginner.
The agriculture sector is more investor-friendly than most people expect and has been an investment destination for hundreds of years. The futures market grew up within agriculture, and many agricultural stocks can trace their history back to a time when shooting at each other with pistols was an acceptable way to settle an argument. The maturity of the agricultural sector and the diverse means of investing in it, combined with new concerns over worldwide food consumption, make it a compelling option for many investors.
Investing in Agricultural real estate
Agricultural Real Estate is a property consisting of land and building on it along with natural resources such as crop mineral or water. (Wikipedia).
When it comes to investing money, Investor ask themselves how much the investment returns? How much it will cost. Determining the cost and the return on the investment is as figuring out the value.
Benefits of investing in real estate
- Real estate investments offer a good high-value risk-return profit.
- It enable investors to reap the benefits while mitigating the risks.
- It appreciate value.
- Investors enjoy being on the land while is being used.
Investing in Agricultural real estate does not depreciate, it appreciate.
Invest in Agriculture today_ invest for profit, invest for impact.