Eight billion. According to the United Nations, that’s the estimated milestone population of the Earth as of November 15. The most current estimates say we will hit nine billion in 2037 and nearly ten billion by 2050… just 28 short years away.
Why is this important? Because that’s a lot of new mouths to feed and people to house, which means a steadily increasing demand for food, fiber and timber utilizing an increasingly finite resource… farmland. The agribusiness challenges ahead are enormous in terms of sustainability and responsible development but owning farmland also presents enormous possibilities. Alternative Ag Investors can help you exploit those opportunities while meeting the demands of a burgeoning population.
According to an August 2, 2021, Forbes article, crop production must increase by 70% in order to meet the demand. Agricultural experts estimate that as much food needs to be produced in the next 40 years as the past 10,000 years combined.
This is just one of the reasons I started investing in managed farmland. Greater demand for “must-have” products grown on a diminishing amount of farmland meant two things to me.
Opportunity to Profit
First, the opportunity to profit from investing in farmland is immense and long-term. The supply and demand implications are obvious. More and more people need more and more food. Not only that but as more and more countries expand their middle class, the desire for higher quality and a greater variety of food increases.
It’s really pretty obvious – life will go on without a new car; without a Starbucks on every corner; without the latest fashion; without luxury goods; and without the latest electronic gizmo… but everyone needs food.
There are only two ways to meet the demand – become more efficient to produce greater yields using the same land, or put unused and underutilized lands into production. Hi-tech agriculture is the wave of the future, and that includes a greater reliance on greenhouse production. Many areas of Latin America, Africa and Asia offer productive soil, good growing climates, ample water supplies but an immature agribusiness. Both of these paths to meet demand provide opportunities for the savvy, forward-thinking investor.
Since the agricultural investment opportunities are long-term, these are legacy investments yielding strong passive income streams for not just you but your heirs as well.
Be A Part of The Solution
Second, by investing in productive farmland I get to be a part of the solution. How cool is that?
And you know something? In a world where it’s often difficult to truly make a difference, that’s a pretty good feeling to know that you’re growing food for a world where many go to bed at night with an empty belly.
But as a passive investor in farmland production, you’re not just growing food. You’re providing jobs and making sure that investment dollars are being fed into sustainable agricultural endeavors instead of some massive conglomerate that only sees the bottom line.
It’s Time to Buy
We’ve entered a time of economic uncertainty. Aggressive moves by hostile governments make investors jittery; excessive and deficit spending by governments is yielding high inflation; central banks are raising interest rates worldwide. Most economists are forecasting a worldwide recession. How will you do? What will your portfolio look like next year? In two years?
Investing in managed farmland allows you to avoid most of the coming turmoil and actually make a profit on inflation.
Despite the instability ahead, food will always be in high demand unlike the demand for less critical consumer goods.
If you want to simultaneously profit and be part of the solution by owning managed farmland, contact me at Alternative Ag Investors and I can help place your funds in long-term options that will provide returns not only for the rest of your life but also for your kids and grandkids.
