By Allison Spence, Harvest Returns Marketing Manager & Producer Relations
There seems to be a lack of talk about women in investing roles. It is easy to find articles about how to become the next Warren Buffett or Peter Lynch, but what about being the next Geraldine Weiss or Barbara Corcoran? On another note, there's also a lack of talk about women farmers and ranchers. 30% of U.S. farmers are women, yet the face of farming is typically that of a man. Now is the time for these two industries to pair together to build powerhouse investors and agriculturalists. Here are 3 reasons why women could make great agriculture investors:
1. Women have more patience.
Studies show that women are better investors than men, mainly because women are more patient. According to a study conducted by Response Source, "Men’s patience is more likely to snap quicker than women’s... even though women perceive themselves as being less patient than men."
Successful investors exhibit patience. Long-term investments, like agriculture, are not about taking advantage of short-term momentum-driven markets. Returns from agriculture do not come immediately. For example, newly-planted apple trees could take up to 5 or 6 years to produce fruit. If you're investing in that apple orchard, you won't receive a return until those apples are sold. In a time of financial uncertainty, there is no better asset to own than income-producing farm, timber, or ranch land. These long-term investments provide tangible yields derived from naturally produced products, and have beaten the returns from other asset classes for years.
2. Women think outside the box.
Historically, women have had to learn different talents and perform job duties based off of gender bias. This has helped women think "outside the box" in how they can bridge the gender gap on many things.
Women who think unconventionally can successfully manage risk by investing in their own way, as opposed to traditional male investors, and creatively set up a well-defined investing strategy. Part of that strategy to even out the risks should be thinking about how to deal with inflation. Real assets, like income-producing agriculture, provide a hedge against inflation. These investments are usually negatively correlated to the overall stock market and produce solid returns compared to other asset classes.
3. Women are nurturers.
Whether as a learned trait or a natural emotion, women tend to be more nurturing than men.
Aside from the strategic component of investing, sometimes it is worth a second to think about what you are investing in. This nurturing tendency may make women appreciate the impact they are making when they invest. By investing in agriculture, you are investing in a farmer who is helping feed the world. An investment in agriculture is providing food, clothes and homes for people, essentially helping keep the human species alive and well.
Women Can Make a Difference
Women are nurturing, so they can appreciate the farmer who cares for the land and for what she is producing– something that will feed, clothe and house others. Women can understand that nurturing something that grows requires flexibility (out of the box, sometimes) and patience. And ultimately, that patience allows you time to make sure that your money is in the right place.
By connecting female investors with female farmers, agriculture has potential to change the world. With innovative, forward-thinking there is a great deal of opportunity in this niche of investing.