Though sometimes overshadowed by Brazil’s political turmoil, the country’s agriculture sector nevertheless remains strong and competitive in the global market. There are large tracts of underdeveloped land that hold much potential for investors willing to put in the necessary capital to convert pastureland to farmland. It is expected that the world population will surpass 9 billion by 2050, meaning food production will have to increase by 70% to meet demand. Brazil is perfectly suited to accommodate this growing demand due to the availability of land.
Read moreHow Equity Crowdfunding Is Different From Kickstarter
Crowdfunding is probably a word you have heard thrown around more and more in the past few years, but you may still be unsure of exactly what it encompasses. That’s a reasonable response because crowdfunding has come to mean different things to different people. There are two major types of crowdfunding: donation-based crowdfunding like Kickstarter or GoFundMe, and investment, or equity crowdfunding. Most people are generally familiar with platforms like Kickstarter, but may not have as much experience with equity crowdfunding. While equity crowdfunding also raises money via an internet platform, the two are vastly different. To clear up any confusion between the two different types of crowdfunding, we have outlined the major differences between them.
Read moreWhat You Should Know About Non-GMO Investments
Genetically modified organism (GMO) crops were first introduced to the market over 20 years ago as an environmentally-friendly solution to the problem of producing food for a rapidly growing world population. In many parts of the world, they are still seen as the solution for malnutrition, like these bananas that were created to provide children with vital nutrition they were lacking. They are genetically engineered to include traits such as resistance to weeds and pests, allowing farmers to use fewer pesticides. However, in some cases, weeds adapted and became more resistant to herbicide, meaning farmers had to increase their use of it. In addition to the concerns about the safety of ingesting GMOs, consumers began to worry about the health concern of more herbicides being consumed. Recently, the popularity of non-GMO crops has risen, as consumers seek out GMO-free products and farmers return to planting conventional seeds.
Read moreCrowdfunding for Agriculture
Agriculture is a broad, ever-changing field that is rapidly advancing to keep up with global consumers and increase yields and profits. A more slowly-evolving sector has been access to financing. Equity crowdfunding is an emerging option to help farmers obtain capital.
Read moreCapital Investments in Poultry
America consumes more chicken than any other country, driving a massive demand for poultry production. There are around 25,000 family farms involved in poultry production, and as demand for poultry products continues to rise, so does the need for poultry farms. It is becoming increasingly common for large companies to offer multi-million dollar contracts to farmers to raise chickens. In this arrangement, the company will provide the animals and feed, and the farmer will house and care for the birds. This arrangement ends up demanding a sizeable upfront investment on the farmer’s end, as he must develop the infrastructure of his farm and build large barns for the chickens.
Read moreDiversifying Your Portfolio With Agriculture
We’ve covered the many benefits of investing in agriculture, and we often highlight the ability to diversify a portfolio. But what does that really mean? Diversification is important for investors, financial planners, and fund managers alike, as it can help protect a portfolio during a downturn in the market. When other, riskier investments are performing well, it can be easy to forget about (or avoid) investing in safer, low-risk investments that don’t promise a large, immediate return. Nevertheless, diversifying a portfolio is essential and agriculture can make a great addition by providing stable returns with very low risk. Agricultural production is one of the oldest investments out there, and can also be one of the most stable and profitable.
Read moreA Little Pork in your Portfolio
Americans have been eating pork for centuries, ever since the first hogs were imported to the United States in 1539. Nowadays, 42% of red meat eaten in the U.S. is pork, and that number has been continuously increasing throughout the past few decades. By the end of 2018, the USDA predicts that demand for pork in America will meet or exceed that of beef. We also export the majority of the world’s pork and pork products, so the future for hog farmers and their investors looks bright.
Read moreThe Top 10 Investment Trends in Agriculture
The huge variety of crop choices can be overwhelming to investors new to the agriculture asset class. An option for choosing potentially profitable investments is to follow society’s food trends. Many Americans these days are heavily dedicated to eating clean, local, organic foods. Trending diets and popular foods are raising the value of these crops to farmland owners and investors.
Read moreHow to Invest in Agriculture With Your IRA
An Individual Retirement Account (IRA) is a type of savings account that is designed to help you save for retirement and offers many tax advantages. Many employees end up with significant balances in their IRAs funded by roll-overs of their 401k plans after they retire or leave a job. Others build them up slowly with regular contributions. One of the best things about an IRA, as opposed to an employer-sponsored retirement plan like a 401k, is there is a vastly larger selection of investment options available within the account. Traditionally, investors only consider stocks, bonds, mutual funds and exchange-traded funds when choosing investments for an IRA. However, these are not your only options. Agriculture can be a great addition to any portfolio, providing a low-risk option that generates stable income in the form of profit from the farm and capital gains as the land appreciates in value.
Read moreWhat is My Farm Worth?
Whether you are in the market to sell or just curious, land-owners often wonder how much their farm is worth. There are many factors that make up a farm’s value. Property location, type of crop, soil, and physical condition of the land will all be taken into account, so it can be overwhelming to try and put a dollar value on your land. Not to mention, family farms have a certain sentimental value that should also be taken into consideration. Luckily, there are a lot of different ways to approach evaluating your land’s market value.
Read moreTimberland: Solid Returns with Forest Investments
Timberland provides numerous benefits that distinguish it from other investments. Timber investments have outperformed the stock and bond markets over the long term and do especially well in bear markets.
Read moreFarm Financing Decisions - Debt vs. Equity
Financing is a key decision every farmer must make. Taking on additional debt or equity to expand operations offers certain advantages and drawbacks to a producer. An operation's debt to equity ratio is a key measure of a farm's health. Where does your operation stack up against the national average?
Read moreWhat the Ivy League Can Teach You About Investing in Natural Resources
Asset managers for the massive Ivy League endowments have long known the benefits of investing in natural resources, to include farm and timberland. This asset class can provide the same advantages to average investors as it does the endowments.
Read moreToday's Markets and the Everything Bubble
Today's investing environment is precarious. Could agriculture be the solution for yield and safety?
Read moreDiversifying a Portfolio with International Agriculture
The vast array of affordable and diverse investment opportunities in Latin American agriculture are largely unparalleled. As U.S. markets continue to struggle and become increasingly uncertain, many investors will depart traditional asset classes in search of better investment alternatives.
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