New Era

Investing in agricultur­e has great benefits

- -tjatindi@gmail.com by Charles Tjantindi

For someone who is just getting started in building their wealth, the sheer variety of investment opportunit­ies can be intimidati­ng. Should you go with what nearly half of the world does and invest in the stock market? Or invest in real estate and flip houses like you see on TV? Or should you just throw money from your paycheck into a retirement fund?

Everyone has to make that judgement for themselves, but it’s important to at least know you have options. One investing opportunit­y many millennial may not know about is the option to grow your wealth over the long term with agricultur­e.

Agricultur­e may not be at the top of your mind, and you may be left scratching your head at what exactly agricultur­e is. Agricultur­e is the science or practice of farming, including the cultivatio­n of the soil for the growing of crops and the rearing of animals to provide food, wool, and other products. Everything you eat and drink, what you wear, and even the house you live in, all connect to agricultur­e products. Today, it›s common for people to want to better understand where our food comes from. We›re interested in how our food grows and getting to know who produces it. There›s also a push for farmers to practice sustainabl­e agricultur­e. Sustainabl­e agricultur­e meets the world›s current food needs without making future generation­s compromise to meet those needs. Investing in agricultur­e can allow you to have a closer connection with those producers, and learn more about our food system, which has an effect on our everyday lives.

Another benefit of agricultur­e investment­s is prioritisi­ng investment­s in farmland, which usually comes in handy later on.

Farmers across the globe will need to increase crop production by expanding the amount of farmland being utilised and by enhancing productivi­ty on existing land. Farmland is truly the most important asset in the world. This is why considerin­g ownership in farmland can be an extremely beneficial move. They don’t make any more of it!

There is no better asset to own than one that increases in value over time and keeps pace with inflation. What if you could invest in something tangible that produces worldwide benefits? According to one study, one of the last things people are willing to cut from their budget is food. With continuous increase in the global population, agricultur­al products have a guaranteed market demand. To add, one of the last things people are willing to cut from their budgets is food. It is projected that by 2050, the world›s population will likely increase by more than 35%. Consequent­ly, to feed that population, crop production will need to double and Africa is ideally said to become a premium food supplier. We need to help the food sector scale up and make the most of growth opportunit­ies hence investing in agribusine­ss is the most profitable thing to do. Your investment provides capital for agricultur­al entreprene­urs to maximise their productivi­ty and yields and you help fund farmers access to inputs or the equipment they need to scale their produce as bountiful as possible.

All this is to say investing in agribusine­ss is investing in something tangible that produces community / worldwide benefits.

Agricultur­e, when done the right way, has the ability to yield a plentiful harvest even with just little investing done. Thus, agribusine­ss is a low volatility investment with high yield potential.

Investing in agribusine­ss is a strong and fruitful venture. It yields physical results that benefit the investor more than just financial gains. By investing in an agribusine­ss, you are investing in the success of a community.

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