5 Reasons you should invest in agriculture right now

July 11, 2022

How are you feeling about your current investments? Perhaps you have concerns about the stock market or the volatility of other holdings, and you have been casting about for new places to put your hard-earned money.

You should know that investing in agriculture is an ideal way to bring some stability to your assets, especially in this uncertain world. With that in mind, here are five reasons why you should consider investing in agriculture today:

1. Hedge Against Inflation:

Many individuals opt for investing in farmland out of concerns about growing inflation, according to Bloomberg. That’s because as you are paying more money than usual for routine purchases, its value is plummeting. With agriculture in your portfolio, you stand a better chance against the ravages of inflation.

2. Agricultural Land Is Increasing in Value:

You can’t go wrong investing in the land that our farmers work so proudly. The value of farmland tends to increase over the years. As noted by a recent report from BTC Bank, land values have been on the rise, from non-irrigated cropland to pastureland seeing a boost in value of 2% and 6% respectively between 2019 and 2020, based on research conducted by the University of Missouri.

3. Experts Forecast Boost in Demand for Food Worldwide

With more hungry mouths than ever before needing to be fed globally, it’s safe to say that investing in agriculture will be great for anyone’s portfolio. New Food Magazine reported that today, experts estimate 820 million people around the world face food insecurity. With climate change affecting weather patterns and crop growth, demand is only seen as growing. Your investment in farmland can capitalize on this anticipated rise in people’s need for food.

4. At This Stage in Your Life, You Are Looking for Stable Assets

Depending on where you happen to be in your life journey, you may be more inclined toward risk or prefer a more conservative approach. For many investors, it’s important to have some stability in their portfolio. Consider that people are always going to need to eat, meaning that farming is never going to go out of business. Farmland real estate tends to be a stable asset class, and given that there is steady or increased demand for food, agriculture can make for an excellent addition to your holdings.

5. You Should Diversify Your Investment Portfolio

A great time to buy farmland is when you have noticed that your holdings are too similar. It’s always a good idea to branch out and invest in diverse opportunities. That way, you can rest assured that your money won’t depend on the rise and fall of a single key industry or sector in the economy. Per BTC Bank, investing in farmland gives you long-term as well as short-term opportunities for growing wealth, while remaining relatively less risky than say, the stock market.

Improve Your Portfolio by Making an Investment in Agriculture

With so many good reasons for a prudent person like yourself to invest in agriculture, chances are good that you may want to know what are the next steps to take to add farmland to your portfolio. That’s where the team at FarmFundr can help. If you are curious about how to invest in agriculture, we want to be a resource you can rely on. We are experts in farm investments and welcome the opportunity to assist you.

It’s now easier than ever before to explore your farmland investment opportunities. Sign up for a FarmFundr account today, so you’ll be notified when new opportunities become available.