Monday, October 29, 2012

Agricultural Investments - Fulfilling the Global Food Security Concerns

In the last three years, there has been a rebound in agricultural profitability as the global demand for fibre, fuel and food entered a golden era where agriculture gave highest profits as the market risks in agriculture soared amidst highly volatility and raising stuff prices. Although there has been a high volatility in the sector investors are happy about investing in agricultural land being of the balanced food consumptions and the increasing income of global population which is expanding the appetite for agricultural products.

Some of the circuitous problems matching as global warming, changes in food habits, climate change and poor agricultural outturn resulted in sharp increase in food prices across the world and the number of people who are either malnourished or hungry is increasing which has been a concern for policy makers.

Hunger crisis in Africa

For the third time Sahel region in West Africa is suffering poor harvest, droughts and soaring food prices. Last year Kenya, Somalia, Djibouti and Ethiopia were affected by worst hunger crisis and the government of the countries are promoting investment in agricultural land. Investors are seeing great values in investing in agricultural land and they are buying either farmlands outrights or targeting the subsectors in farming such as fertilizers. The main trick in investment is to be part of farming production which helps to generate high returns in the form of regular harvests as there is increasing demand for food grain harvests in the global market and also you get returns from the increasing price of the farmlands.

Increasing food demands

Investment in agriculture involves commodity trading and farmers are using agricultural contracts to offset losses in crop production. Agriculture has been a link for increasing friendship between China and Africa. By the year 2050 the global population will be 34 % higher than today ' s population as it will reach 9. 1 billion and the demand for food grains will increase by 50 % by 2030 as per UN statistics. Poor weather conditions and rising demand from the emerging market will make it difficult to regulate food prices.

The dangers of climate change and urbanisation

Climate change poses the major risk over long term food security. Climate change is having a negative impact on agricultural output and urbanisation also affects 70 % of the world population as it reduces the number of people who are into rural agricultural sector. To feed the growing population, which will get richer and earn more, an increased amount of food grains production is required and the world will need at least 70 % more food grains.

Capital Alternatives: Invest in agricultural land in Sierra Leone

Capital Alternatives provides opportunity to invest in prime agricultural land in West Africa in Sierra Leone where the investors can own farmlands at a low investment of $9000 ( for three acres of farmland ) and there are no hidden costs included in the price. We provide planting, management, harvesting and maintenance of farmlands in Africa and give 40 % of the net profits generated from rice crops to the investors. The value of agricultural land in Sierra Leone is increasing at a conservative rate of 7 % and income from rice farming is expected to be more than 15 % per annum. To know more about the investment opportunity in rice farming in Sierra Leone, contact mailto: