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Food and Drink

Six Reasons Why Agricultural Investment is Important in 2021 and Beyond

Importance of Investment in Agricultural products supplier

The pandemic is a worldwide health crisis that is having devastating impacts on the world economy. This is with both directly and through mandatory measures to contain the spread of the disease. These affects are also being felt in the food and agriculture sector. In many countries, the food supply has held up well to date. The measures put in place to contain the spread of the virus are starting to disrupt Agricultural products supplier. The sector is also experiencing a significant shift in the composition and for some commodities, the level of demand.

The population around the globe is growing while rural areas are dwindling. Sensible investors see this as a sign that demand alongside associated prices for agricultural and farmlands are set to rise. Due to the pandemic, agricultural investment is like a blue-chip investment.

This blog post will offer you a better understanding of for whom and why agricultural investment is important as well as how you can reap benefits from it.

National Survival in Agricultural products supplier

Apart from the basic necessity, food is a matter of survival for humans as well as a means to ensure the country’s sovereignty. More agricultural investment depicts more agricultural production and eventually higher levels of food stock.

It also suggests lesser forex spent on import bill of food. Agricultural investment is always recommended. After all, it is a safer investment not for the individuals but for the country because it saves countries during the time of famine or war.

Future Need

Food consumption is at an all-time high; especially after the COVIOD-19 crisis. Also, there is a steady growth for produces for a cash crop. China and India, the two populous countries on the planet are adding further middle-class families who are mobile upwardly and spend more on nutrition.

As per an estimate people in these two nations have doubled their per capita consumption already in the last twenty years. However, this might be far less than the countries in the west. It is predicted that people around the world will be consuming 3x more than what it is today.

Biofuels

Demands for biofuels are and will continue to rise in non-oil-producing countries. We all know the quantity of fossil fuel is non-renewable and limited, there will be a huge urge towards using biofuels. It means that the fuels of future usage will be produced on farmlands rather than in the gas fields.

Further, there is hardly any country in the world that does not carry programs for farmland-based biofuels. China and India are among the top nations that encourage agricultural investment for biofuels production. India contains a unique advantage because it gets sunshine all over the year.

Quality Soil

Top-quality soil has become a rare commodity, which makes it expensive for farming lands. If you are thinking towards agricultural investment in the form of land, it is highly recommended because arable land is rare even now. This rarity or shortage is likely to become acute more and more in the immediate future. If you have a few of them, you must be able to earn a decent amount of profit by investing in them. Another benefit is a bank loan on agricultural land usually comes at discounted rates with lesser formalities to follow. You can also reap benefits from subsidies related to agricultural investment from the government (either state or central). Profits accrued from the agricultural investment are typically not taxed.

agriculture-in-africa

Flex Your Innovative Muscles

You have enough scope to ideate, implement and innovate in agricultural activities. Although you may feel the temptation to believe it is necessary to own big land tracts for achieving economies of scale; however, the reality is otherwise.

Owned farmlands are practical to operate. You can see an agricultural products trader promoting its agricultural investment by presenting cooperative farming for agricultural produces. This shapes it easier to cultivate and adopt modern cultivating techniques for the higher value and selling for better prices. Overall advantage all around.

Flexible Supply Chains:

Strong and flexible supply chains that can respond to variations in consumer demand and adjust in response to supply constraints resulting from COVID-19-related measures will be required to get food to where it is needed. While there are many unknowns and the situation is always changing, earlier crises have provided insight into some of the steps governments might take to limit COVID-19’s effects on the food system.

 

Small-scale Agricultural Investment:

As stated previously, it is a myth that large tracts of land are required to be successful in agricultural activities. A slew of businesses has sprung up to make it possible to make agricultural investments that yield high rates of return with minimal effort. A typical example is Golden Groves’ development of Barhi date production in Southern India.

Salient Features of the Project:

Scientific methods of Barhi dates cultivation –

The latest technology is required here that helps in planting techniques, saves on crop selection, water consumption, and overall management of agricultural production and reaching to clients.

Smaller agricultural farmlands –

Agricultural investment can be done for small farmlands (as least as 25 cents of land).

Intercrop farming –

This farming allows you in making an additional profit while your main crop is waiting to grow and yield profits. The agricultural climate is friendly to produce specialty peppers that generate high market value. The option rests with you.

For Whom to Make an Agricultural Investment?

Agricultural investment is not risky like any other investment. The benefit here is that investors can

  • gain a reasonable return on their investment, and
  • see their investment grow in value Agricultural products trader

Generally, it is easy to liquidate if you have to raise cash. This perfectly fits in the plans of every Agricultural products supplier and of those who are:

  1. Returning to their homeland after completing an abroad stint
  2. Have surplus cash that they like to invest for future
  3. Desire a safe investment place with a higher return
  4. Want to have a residence close to any major city
  5. Give cash at short notice for urgent needs
  6. Make farmland for enjoyment and relaxing

 

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