7 Reasons Why You Should Invest in Agriculture
(Agric Digest #3)
Agriculture is our wisest pursuit, because it will in end contribute most to real wealth, good morals and happiness- Thomas Jefferson
Hello steemians, greetings to you all. Welcome to the third edition of this Agriculture series - Agric Digest.
I will be diverting from the agriculture finance post to an important section of Agriculture- (Why you should invest in Agriculture?). The aim is to encourage steemians and others that will see this post to invest in Agriculture. I believe this is also one of the solutions to the finance problem the sector is facing. So consider this post as a cotinuation to the agricultural finance issues of the series.
Every one of us know that Agriculture sector has the lowest number of investor and has experience little technology improvement. My chat with several people, most especially youth revealed that little is known about the effect Agriculture can have on one’s life, a country, a continent and the world at large. This account for the low number of investors in the Agriculture sector with other factors playing there part also. The Agriculture sector has a lot of virtues and potential which the average man is not aware of. You can check Agric Digest1 for facts that revealed the importance of agriculture to livelihood.
It is the backbone of man survival and likelihood. It has been claimed to be more effective in alleviating poverty than any sector.
In lieu of this, i decided to start encouraging people to invest in Agriculture through steemit has it is gaining world recognition which i having been achieving through this Agric Digest series.
WHY YOU SHOULD INVEST IN AGRICULTURE
Need for Food and Agriculture materials: Food is one of the basic needs of human as they cannot do without it. Agriculture being the main source of food creates an opportunity for a good businessman/woman to make wealth by investing in it. Also the global population is increasing daily likewise food consumption. However there is no equilibrium between food consumption and food production thus resulting in food scarcity. To save the world from future food disaster there must be a large inflow of investors into the agricultural sector thereby creating a source of income for smart investors who will invest in the sector. You should know that hunger is expensive, so a good government will try to avert food crises. A good example is the case of Niger where the accumulated expenditures to deal with there last two food crises amounted to 404.29 billion CFA francs Also many company rely on certain agricultural materials for production and services such as companies that produce juices and canned foods.
Low number of investors: As I said earlier, the sector presently is characterized with low number of investors which is a good opportunity to make wealth and also feed the nation as there will be low competition. It also creates wealth by selling agricultural products, creating new agriculture technology innovations as well as manufacturing and maintenance of machines and implements.
As an investor you can invest by:
Establishing a farm
Investing in farm through loans and credits
Buying of stocks of agricultural companies such as Potash Corporation of Saskatchewan (Fertilizers), Archer Daniels Midland (Agricultural food processing) and Monsanto (Seeds, agricultural chemicals). Check here for others agricultural companies you can buy stocks from.
Source of employment and Employer of labour: Agriculture over the years has provided jobs for many people mostly youths, still providing jobs and will continue to provide jobs. The jobs opportunities are numerous ranging from farm attendants to farm labourers and so on. It can also make you an employer of labour.
Focus on other economies: The government of many countries has neglected Agriculture for other sectors which have led to massive increase in import of Agricultural commodities. So investing in Agriculture can also provide opportunity for export trading.
Poverty reduction: It is eleven times more effective to alleviate poverty than any sector. So if you are someone who has the wellbeing of the masses in your mind like me, agriculture is the best option.
Land: Land is a factor of production appreciates faster over years. According to fischersfarmservices website, on average, farmland value has a long term appreciation rate of about 5% to 6%. Also most of agriculture land (arable land) are in the rural areas where land are cheaper compared to urban areas.
Easy to start up/Start Small opportunity: It provides opportunity to start small compared to other business that requires large starting capital. It is also easy to start by getting a land and planting whatever you want to plant or rear animals on it.