Agriculture Investment - The basic picture for investors

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An expanding population, a lack of resources and a changing climate are three trends that define the present. Alone, each element becomes an important issue, but when combined and connected together, they become the most serious. Over time, the pathways to these factors will become most connected and their impact on the global economy will become more pronounced. Along with this arrival, the incoming region offers investors the best prospects for investment and income in the short, medium and long term.

The agricultural sector is well positioned to take advantage of these fundamental changes in food demand and our failure to deliver. Demand for agricultural commodities is bleeding, and will continue to do so, with an additional 75 million people per year, using high-energy dietary changes in developing countries, and biofuels through food crops. General Chat Chat Lounge Play fresh demand. Nevertheless, our ability to supply these items is growing, due to the fact that many factors can be blamed for climate change, more agriculture, and less production from the green revolution. Production of grains on a per capita basis began to decline around the mid-1980s, and availability of agricultural land began to decline in the early 1960s.

Two years ago, in 2008, grain stocks were at their lowest level for more than four decades, and as a result, the start of the record led to the largest increase in agricultural commodity prices. Of course we have seen prices that correct themselves by the end of the year, yet prices have increased despite the financial crisis. Global food supply sits in an unusual position, increasing pressure from the top and the bottom to real demand and limits. For this reason it can be proved that the land capable of producing such goods will become more valuable resource over time. Then it is safe to say that investors are very sorry to see agricultural investment that this supply and benefit error will be exploited by investing in farmers. Here are the facts:

The global population grows to more than 200,000 people per day. The current population is about 6.7 billion people and about 10 million hectares are farmland, 138 million hectares annually and 3,433 million hectares of media or it can be used to feed the population. The total food production on the planet is 4,973 million hectares. This means that everyone on the planet is about 0.74 hectares when you include all kinds of agricultural land. Keep in mind that this land should continue to produce our cotton and rubber, as well as every ounce of grain and meat, and grain to feed the meat, and to produce the biowell we all need.

These calculations take us to conclude that, based on current agricultural production, 148,460 hectares of land are needed each day to feed 200,000 or more new mouths. This equates to the total area of ​​the earth, only the crop grows, which is approximately the size of Greater Lund, or 100% larger than New York City, Tokyo and Singapore combined. The real picture is alarmingly different, where we must add huge amounts of land to agricultural production on a daily basis; Are. Is quite low.

This number dramatically demonstrates the challenges of feeding an ever-growing population with a stressful farming base. It has increased agricultural prices worldwide and the value of good quality agricultural land is rising and demanding. To be more specific, the ever-increasing demand for commodities produced by the excavation of fields, the high pressure on prices, then the promotion of multiple pressures, the restrictions on raising the rate of sanctions on advancing prices. With higher prices will continue to run.

It is a complex picture with many factors to take into account and measure. As alien prices rise, demand for rising land prices, and supply also increases if more land is created. At the same time, if production increases, less land is needed, but if production capacity is lost, because we are witnessing mostly due to climate change, citizenship and land degradation. Most likely, more land will not be available. Need, so the current formula land becomes more expensive and prices rise. Farmland investment should at worst be seen as a medium-term strategy and ideally a long-term holder, but allows short-term drivers to understand as alien prices allow. Is

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