Agriculture ' s Profit Potential Is Growing Like a Weed

If you ' re on the hunt for massive gains, consider the fact that agricultural stuff prices have been falling. Falling prices offer buying opportunities! That ' s the reason why profit potential is growing.

As the global economic slowdown has churned along, economic progress has ceased. The everything prices give forth the detail that we are bouncing along the bottom of a recessionary trajectory.

Demand for most lines has diminished. Figure demand will, however, recover when the global economy begins to recover.

Whenever it does recover, agricultural business prices will skyrocket.

Many device traders are recognizing the one's move and are now re - inflowing the market.

Few word traders enjoy the fame and testimonial that has been bestowed upon Jim Rogers. He co - founded the Sliver Green stuff with George Soros and retired in 1980 at the age of 37 having experimental 4, 200 % growth in unparalleled 10 years.

In 1999, Rogers recognized and announced the now - famous " Super - course phenomenon bull market. " He speculated on the precious metals when gold was trading near $260 per ounce and silver was trading near $4 per ounce.

With gold now trading over $1, 500 per ounce and silver over $25 per ounce, most folks consent that he was right!

Significantly, Rogers believes that this Super - cycle will continue until 2020 to 2025 and that agriculture has lagged behind the other commodities.

He is now focused upon the agricultural commodities and predicts that he will make more from agriculture than he has from anything else in the past.

Coming from this particular billionaire, that ' s a big endorsement.

Investment and speculation capital tends to flow into sectors that offer the greatest potential rewards. Among commodities, the greatest potential rewards seem to be growing in the agricultural commodities sector.

Again, at some point, the global economy will recover and agricultural commodity prices will skyrocket from their present levels.

By speculating on agricultural commodities while prices are low, you will realize massive gains when the recovery materializes.

Most folks missed out on the major moves made by the precious metals and energy commodities over the last decade. That ' s because most folks ran away from the falling metals and energy prices of those days.

Falling prices, however, typically indicate buying opportunities for successful traders.

Of course, we should not be stopped by rising prices if proper research and analysis indicate that prices will go even higher. For example, I distinctly recall being told that I was crazy to buy gold when it reached $800 per ounce because it was at " all - time highs. "

In this case, however, it is unlikely that you will find anyone claiming that commodity prices are near their highs. Most traders will admit that prices could indeed drift lower. If we are not at the bottom, however, most would agree that it is near.

So, how can you participate? There are a number of Exchange Traded Funds ( ETFs ) that enable the average stock trader to participate in agricultural commodities without purchasing options or futures contracts.

The present state of the global economy indicates that we are seeing extraordinary buying opportunities RIGHT NOW in the agricultural commodities sector.

Consider the global demand for food. It may increase and decrease slightly as people adjust their budgets to economic downturns from time to time, as we are seeing presently. Overall food demand, however, does continue to grow as the population grows.

The world ' s population has more than doubled from 3 billion in 1960 to now. It is near, if not over, 7 billion people today. The United Nations estimates that the global population will exceed 9 billion mouths to feed, less than 40 years from now.

While the population has been growing, the arable land available for farming has been declining as more former farmland has been developed to meet the residential and commercial real estate needs of a growing population.

Rising food demand and declining availability of farmland equals higher food prices.

Granted, all commodities will see substantial price increases when the global economy begins to recover. Agricultural commodities, however, should see the greatest gains due to the fact that they are so far behind the metals and energy commodities.

Agricultural Pollution

Agricultural pollution refers to the contaminants present in the environment as a reaction of agricultural practices. Most effects of agricultural pollution are felt in water environments and are caused by runoff from farms and barnyards like as ammonia, pesticides, fertilizers, oil toxins, and animal away that make their way into humanity of water. Agricultural pollution also negatively affects the quality of air. Chemicals and byproducts from the agricultural industry are quite harmful to the natural environment and can pose a problem for humans as well. As the world ' s population continues to grow at a heavy proportion the demand for biting agriculture will reach high, and so combating agricultural pollution will be increasingly difficult. With this in mind, several alternatives to industrial agriculture, with its polluting tendencies, have been explored and are being utilized today.

Pesticides used to kill insects that feed on crops can cause much damage to the environment if used inappropriately. Excessive pesticides remain in the soil after sprayings and are washed away by rain that forces them to be absorbed into groundwater. Avoiding pesticide contamination is a tricky process only feasible through careful containment practices. The same problem exists with the use of fertilizers. Excrements produced by cattle and other barnyard animals also cause pollution. The methane released from cow flatulence is also a type of greenhouse gas making it partly responsible for global warming. Emissions from the use of fossil fuels by tractors and other farm equipment used in agriculture also contribute to air pollution. Fires, which are not uncommon on farms, can be very detrimental to the environment if fertilizer or waste products are being burnt. The problem of agricultural pollution is not simply felt in regions in farming regions. Contaminates in rivers can be carried all the way to the ocean and polluted air can be blown to other areas with denser populations.

Agricultural pollution poses numerous human health problems. Chemicals that make their way into groundwater can eventually end up in water sources that are used for drinking. Blue baby syndrome, a disease that causes death in infants, is often caused by contaminated water. Pesticides released into the air and emissions from farm equipment cause difficulty breathing and a host of respiratory problems. Fertilizers, manure, waste, and ammonia that are present in water release nitrogen that reduces the amount of oxygen present resulting in the death of fish and other marine animals.

While industrial agriculture is the most efficient way to produce large quantities of food, the pollution associated with it raises many environmental and health concerns. In light of this, there has been a shift to organic farming which uses more natural ways to raise crops and livestock and avoids the use of harmful chemicals. The use of alternative crops that require less fertilizer because they are adapted to the environment in which they are grown also help to reduce agricultural pollution. However, the demand for cheaper and higher quantities of food as world population steadily rises will make changes in farming methods less likely and more difficult.

Administrative Concepts Breaks New Ground - - Expanding Its Services Into Florida ' s Agriculture Indust

PressRelease ) Administrative Concepts, a Southwest Florida based Professional Manager Pattern ( PEO ) announced a denoting expansion of its payroll and risk management services with a new outreach targeted towards Florida ' s agriculture industry.

Southwest, Florida - Administrative Concepts, a Southwest Florida based Professional Employer Harmony ( PEO ) is pleased to announce a forceful expansion of its payroll and risk management services with a new outreach targeted towards Florida ' s agriculture industry.

Administrative Concepts has formed a joint plunge with McKenzie & Sons, Inc., a inquiry - genesis citrus harvester headquartered in Frostproof, Florida, to fashion the program. Landlord Richard McKenzie has brought decades of experience to consult with Administrative Concepts and help clothier PEO services directed to the specific needs of all segments of the agriculture industry, from small family - owned farms to mammoth conglomerations.

Agriculture is Florida ' s second largest industry with an estimated payroll of $80 to $100 million, making it a natural fit for Administrative Concepts ' innovative brand of comprehensive payroll and risk management services.

" The beauty of Administrative Concepts is that we allow our clients to focus on their core business without the distractions of paperwork and red tape, " said co - founder George Bushong. " Too many business owners spend way too much time worrying about administrative details and wind up getting frustrated and stressed out. We relieve that burden and allow our clients, such as citrus growers, to devote their energies towards growing their business, which in this case, is oranges and grapefruit. "

Administrative Concepts has opened a new office in Avon Park which specializes in employee leasing services for agriculture clients. Other services offered include all aspects of risk management, including workers ' compensation claims management, workplace safety programs, OSHA compliance, unemployment claims and drug - free workplace programs; employment compliance details such as payroll taxes and personnel record maintenance, and payroll administration, which encompasses calculating and providing payroll checks, year - end tax forms, and online reports and payroll processing.

Administrative Concepts was founded by George Bushong and Sarah Peel in 1995 to assist business owners in the details of managing their companies, offering PEO services such as risk management, payroll and employee administration, government compliance, and employee benefits. Administrative Concepts is headquartered in Bradenton and has eight other offices throughout Florida, including Avon Park, Tampa, Fort Myers, Jacksonville, Mary Esther, Naples, Pensacola and Port Orange. The company has been honored with multiple awards from Florida Trend, and Sarasota - Manatee Business Magazine, and was listed as the 18th largest privately owned company in the Tampa region by the Tampa Bay Business Journal. Administrative Concepts has received additional recognition by the Tampa Bay Business Journal as one of their top - ten ranked PEOs.

Administrative Concepts is a member of the Four Corners of Excellence, a collaborative alliance of sister companies, joined by: Financial Concepts, Insurance Concepts and Employment Concepts. As a comprehensive family of companies, each corner specializes in a different aspect of business that collectively offers a broad spectrum of services for prospective and current clients.

For more information about Administrative Concepts and any of its professional service offerings, call ( 941 ) 744 - 1317 or visit www. accpeo. com or www. fourcornersofexcellence. com.

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Source:

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Agriculture - The Keyword of Development

Food " the colloquy comes in the very first position in the catalogue of basic needs for gob living being. This particular tete-a-tete has great impact among the human being living in rasher part of the world. It is not the apart truth that farming is the basic need or the source as through we can ' t live without food but it is known as the pillar of strength for any territory.

Development where as any country is concerned is hugely depending upon agriculture. There are debates around about the importance of industry as well as for the farming. Agriculture, people usually thinks about is the source of serving basic need is also an exposures. In today ' s arena farming or productivity of crops has the same level of importance with industry. The exported grains generally collect revenue which helps in having recognition the global arena.

Earlier farmers used to compromise with the quality of crops as because it has the only use of within country. But the entire concept has changed in any territory. Administration body is giving the same level of importance with industry. It is preferred to give the same level of importance to the farming as well as the industry.

Fertility, water sources, pesticides and insecticides are some of the words to be accompanied with agriculture. Countries around the world have started taking the agriculture very professionally or strategically. Proper strategic plans are important.

Like farmers are more concerned of the facts that farming is all about developing many facts. Now there are many things which come instant on boards. Pesticides, insecticides, herbicides and fungicides are some of the essential needs which are basically used to enhance or increase the quality. These are also used not to get harm by several harmful insects and herbs. Nicosulfuron is the name which really helps in farming and saves the crops from harmful insects.

Actually these are very much important things when it is concerned for farming. Lots of special sessions are being organized to educate all the farmers. There are enough of products and also companies which are promoting and selling their products which are related to farming. Suppliers who are selling chemicals are known to be the most knowledgeable persons of field. They know or have the education about the ratio to increase the quantity of the grains. We should aware of the fact that agriculture is one of the pillars which collect revenue for any country.

Agriculture Business A Good Investing Option

Agricultural businesses are miscellaneous and cover much more than a large farm or ranch. A person looking to start a business or buy an existing business in this area will need financing as well as particular knowledge. The accessibility of land to start a new agricultural business is a limiting ingredient these days as there even-handed is not that much land still not being refined. This means that a new publician will regularly have to find an agricultural business that is for sale. There are always family businesses for sale, but they do not become available at low prices these days.

The land is prized and the obtainable equipment if in good repair is also not comical. New equipment is priced like new cars are these days. The prices are higher and higher and out of prospect. Most new owners of ranches or farms were born into the family business and are condign bewitching over the running of a family or corporate deal. There are other related agricultural businesses that can be started from scratch or purchased from an existing lessor. These include farm supplies, farm equipment, nurseries, small special crop farms, pest control, a niche winery, crop dusting companies and horse or cattle ranches. All of these businesses can usually be found on the market. The problem, as with any other purchase of a business, is this. Can the buyer come up with enough money to interest the current owner and will the current owner carry back some of the paper. There are many very solid reasons that a new owner should consider buying an existing operation rather than starting a new company. The cost will be higher usually with a running business, but the existing business will have customers or a history of production.

Many of the related agricultural businesses will not take the capital to get started or to buy that is desirable for the purchase of a large ranch or farm. Farming now days is a capital concentrated business and this is one of the reasons that family units are always coming on the market. This opens the door for chance for the person looking to buy, but it also means that the buyer must have the capital or credit to make the purchase. A proposal for a potential buyer is contact brokers who specialized in these businesses and see what is being offered and the terms of the offers. This will quickly notify the buyer what they are going to need to make a sale ensue.

If you are interested in buying an agricultural business that supports the farming community, then your capital expend may be considerably lower and may show a higher percentage return on investment. Farming has a low return on invested capital since the price of land and equipment has sky rocketed in this current market. Some of the other particular businesses can be purchased or started with less capital and the percentage return is significantly higher. These are factors that should be considered by a potential new owner. One of the reasons that the family units come to market is just this fact. The old owners die or wish to retire and their children do not with to continue the business. So they put it up for sale, knowing they can get a better return on their money without the work or the risk of farming. Brokers usually know why a property is being offered and this knowledge can help the buyer make a better deal with the old owner. Maybe just as a matter of principal, they want to see their farm remain a family farm and not part of a large agricultural corporation.

The greatest advice that a potential owner can get is study the market and make sure you have the desired money to pull off whatever deal you are looking at. Find a knowledgeable broker and ask lots of questions. Use the Internet to look up answers to questions that you come across.

Agricultural Store

Agricultural Stores are specialists in the supply of Agricultural products and equipment. Agriculture is widely used and is a growing market. Mainly farming based you will find a lot of equipment like tractors available along with finer more held dear machinery.

It is not trustworthy machinery you will find; seeds, chemicals and all system of farm related items are available. These shops are widespread but not create so much ion area centres; you are usually situated out of the way in country sides and farming villages.

Agricultural Stores has more than one meaning though, the other being Storage. Apart from being used as a term to describe a specific shop, it is also a term used to describe the storage of Agricultural Machinery. Farmers do not always have the space to store their larger machinery like combine harvesters and tractors. This is when the stores come in to place, at a price the farmer may rent storage room in which he can store all of his equipment and machines. The stores are also very secure and safe, nobody except yourself will be aloud access ( unless you state other people as exceptions ). These stores are often even used when the farmer does has room for his machinery but simply does not feel it is safe enough to be left outside.

The only inconvenience of the stores can be its location in relation to you, shipping containers are a way around this, they are mobile and can be set up at your desired location, working in the same way they are secure and allow you lots of storage space.

A Total Guide For Various Types Of Reagents

Chemical Reagents

Chemical reagents are use substantially in heaps fields incorporate business industries, health facilities, life science labs, biotechnology along with other existing areas in research. These types of reagents play essential functions in structure evaluation for specialist progress and in quantitative and qualitative examination. The gospel is, midpoint all of while - to - date routine tasks in schools, factories, research institutes, health and fitness facilities and same pushover households bestow chemical reagents.

Biological Reagents

Biological reagents including staining elements are often industrious in the fields of medication as well as biology to help in visualizing structures for instance those being used in microscopic studies. A good paragon is evaluating sputum specimen done in tuberculosis laboratories. Mixed stains as well as dyes react and so are also advantageous in marking cells in flow cytometry as well as other procedures such as electrophoresis.

Analytic Reagents

These are also referred to as diagnostic reagents utilized in different fields in microbiology, electrochemistry and microscopy. Common analytic reagents include high purity acids and also bases as well as other chemical compositions for ultra - trace analysis.

General Reagents

Among them are the hydrochloric, methanoic, boric, and sulphuric acids. Hydrochloric acid is advantageous in numerous industrial plants for manufacturing of PVC pipes and also making of leather supplies. Its corrosive function is helpful for home cleaning purposes. Shockingly, it serves as ingredient to common edible products like sweeteners as well as gelatin. The sulphuric acid also holds strong dehydrating qualities as well as amazingly helpful agriculture as it is amongst the primary component in making fertilizers. Likewise, sulphuric acids are famous for making detergent soaps and also powders. Methanoic acid is yet another popular reagent used in manufacturing of cleaners and also leather processing.

Factors to take into account on Getting Reagents

In case you are looking to get reagents regardless of type, you need to always verify if you ' re transacting from legitimate distributors. Take into account that there are a lot of fake and also useless reagents for sale. Take extra measures when acquiring reagents on the internet and transact just with those that are recognized by reagent organizations and therefore are licensed and registered to market diverse reagents. Be particular with regards to product delivery as well. Take a look at the product packaging before receiving the shipment. Improper packaging may have an effect on the quality and also performance of the reagents. Over this, improper dealing with of reagents means that the manufacturer doesn ' t adhere to occupational safety standards required by the law. Review product assurances, delivery and return coverages. Always call customer service hotline and also nearest service centers, too, for questions concerning shipping, the product and prices.

Suitable Handling of Reagents

Proper care and storage of reagents are important. Read labels and instructions for its use thoroughly. Since many reagents are categorized as environmental hazards, proper disposal is deemed necessary. Check on state laws about disposal of unsafe chemical compounds before disposing different types of reagents.

Agriculture And Industry Of Poland

Agriculture employs 14 % of the working population but contributes individual 4 % of GDP, which shows the low productivity of this sector. The lower employment in agriculture is produced in Silesia and Lower Silesia region ( approximately 5 % ).

Unlike what happened in the industrial sector during the communist era Polish agricultural sector was principally in private hands. Most of the former state farms are currently leased to farmers, since the dearth of credit commodities impediment to the sale of state farmland. However, the possible scrutiny in 2007 of setup of help to agriculture by the European Union could help to defuse the situation.

Currently, two million private farms occupy 90 % of agricultural land and approximately the twin ratio of total agricultural production. These farms are small, an average of 8 ha, and are recurrently divided. Farms with an area greater than 15 hectares perform 9 % of the total, but they occupy 45 % of agricultural land. More than half of Poland ' s farms produce only enough for subsistence or very little for sale.

However, Poland is Europe ' s largest producer of potatoes and rye and one of the largest producers of sugar beet. It is also a major producer of rapeseed, and pigs and cattle. Poland exported candy, manufactured fruits and vegetables, meat and dairy products.

Often imported wheat, grain, vegetable oil and protein foods, which are generally insufficient to meet domestic demand. Attempts to increase grain production have been hampered by the short growing season, poor soil and the small size of farms.

Before the Second World War, the Polish industrial base was located in the sectors of coal, textiles, chemicals, machinery, iron and steel. Today there are industrial activity for the production of fertilizers, petrochemicals, auto and electrical tools, electronics, and construction of cars and boats.

Polish industrial base was virtually destroyed in World War II. The communist economic system imposed in the 1940s created great economic structures that were developed under the centralized system, which ended up collapsing the system.

In 1990, the Mazowiecki government began a reform program to replace the core program with a more market - oriented system. The results were a gradual incorporation into the market economy and the increase in the results of the various productive sectors. In February 2004, industrial production grew 18 % per year.

Agriculture in the Qing Dynasty

Tsar Kangxi rewarded those who reclaimed wastelands, provided sizeable sums of money for water conservancy projects and penurious the land taxation during his 60 - year ' s principality, which infinitely stimulated the recovery and development in agriculture of the Qing dynasty ( 1644 - 1911 ). Sovereign Yongzheng followed his father ' ( Emperor Kangxi ) footsteps and distant to stir agricultural industry. The social economy was very prosperous during the tract of King Qianlong, so the succeeding historians called this interval " The Golden Age of Three Emperors ".

Immense desert was put under the plough in the first 100 year of the Qing dynasty, with the national farming land covering an area of 5, 260, 000 hectares in the 18th year ( 1661 ) of Emperor Shunzhi ' s reign, which increased to 8, 510, 000 hectares and 17, 250, 000 hectares in the 61st year ( 1722 ) of Emperor Kangxi ' s reign and 3rd year ( 1725 ) of Yongzheng ' s reign respectively. With the output of grains increasing year after year, the number of population had reached 360, 000, 000 by the 3rd year ( 1725 ) of Yongzheng ' s reign, and the high - yielding sweet potatoes planted in Fujian and Zhejiang provinces had spread to the Yangtze River area and the Yellow River area. The planting area for industrial crops had also greatly been expanded, including tea, cottons, sugarcanes, tobaccos and mulberries, most of which became commodities in the Qing dynasty.

The number of farmers who specialized in planting vegetables increased greatly in the Qing dynasty, some of whom planted cucumbers and leeks in winter with the help of tunnel greenhouses, gaining more and more profit. With the cotton - planting prevailing across the nation in Qianlong Period, the cotton - planting area took up 4 / 5 of the total area in Hebei Province, and the sugarcanes were widely planted in Guangdong Province and Taiwan, while the tobaccos were widely cultivated in Shandong Province, Zhili and Shangyu, all of which provided more raw materials for further development in handicraft industry.

Some plants imported from South American also contributed a lot to the increasing number of population in the Qing dynasty, including maize, sweet potatoes and potatoes, which had begun to grow in China from South America via Southeast Asian Countries since the Ming dynasty. The planting, storing and processing method of sweet potatoes was fully described in the Agriculture Encyclopedia written by Xu Guangqi from the Ming dynasty ( 1368 - 1644 ), which enjoyed a high reputation in the filed of agriculture, and the planting method of sweet potatoes was perfected in Qi Min Si Shu written by Bao Shichen from the Qing dynasty.

Agriculture Investing - The Basic Picture for Investors

An expanding population, scarcity of resources and a changing climate happen to be three trends that define current times. Alone, each part constitutes a uppermost issue, but when combined and intertwined as they are, they become all the more set. As time passes, the paths of these factors will become all the more linked and their effect upon the global economy will become ever more pronounced. Sectors at the nexus of this coming together submission investors the best prospects for capital growth and income in the short, mid and long - term.

The agricultural sector is wholly positioned to returns advantage of these fundamental changes in demand for food and our apparent inability to deliver it. Demand for agricultural wares is ballooning, and will run on to do so as demand for food from an extra 75 million people per annum, a shift to high protein handout in developing nations, and the use of food crops as an energy source by way of biofuels drive fresh demand. Ultimately at the alike time increasing our capacity to supply these products is diminishing, a reality that can be blamed on a multitude of factors including climate change, a definite lack of further farmland and diminishing yield increases from the green revolution.

Production of grains, as measured on a per capita basis, started to decline around the mid 1980 ' s and the availability of agricultural land per person started to fall in the very early 1960 ' s.

Two years ago In 2008, grain stocks were at their lowest even for over four decades and resulted in the biggest spike in agricultural business prices since records began.

Of course we saw these price correct themselves towards the end of the year, Someday since and so price have lengthened their rising trend despite the recent financial crisis reigning in demand. The global food supply sits in a precarious position, pressured from above and below by both increases in real demand and limits to increasing supply.

It could therefore be argued that the land that is capable of producing such commodities will become a more valuable resource as time passes. It is then safe to say that Investors savvy enough to look at agriculture investing by way of investing in farmland will be best positioned to take advantage of this supply and demand mis - match.

Here are the facts:

The global population expands by over 200, 000 people daily.

The current population sits around 6. 7 billion people and there are approximately 1, 402 million hectares of farmland, 138 million hectares of perennial agricultural land and 3, 433 million hectares of meadows or what could be termed pasture to feed this amount of people.

The grand total of food - producing land on the planet amounts to about 4, 973 million hectares. this means that each person on the planet has about 0. 74 hectares when you include all types of agricultural land. Bear in mind that this land must also continue to produce all of our cotton and rubber, as well as every ounce of grain and meat, and grain to feed the meat, and the biofuels that we all require.

These calculations lead us to conclude that, based on current levels of agricultural productivity, we require an extra 148, 460 hectares of land every single day to feed the 200, 000 or so new mouths to feed. This equates to a total area of land, solely to grow crops, that is approximately the size of Greater London, or 100 % larger than New York City, Tokyo and Singapore combined.

The real picture is alarmingly different, where we should be adding a huge amount of land to agricultural production on a daily basis, we are in fact reducing the amount of land available for agricultural purposes and for the last three years the total area of farmland has diminished substantially.

These numbers demonstrate dramatically the challenges posed to feeding an ever - expanding population with a strained farming base. This has led to sharp increases in farmland prices across the world and the value of good quality agricultural land is driven by rising demand and diminishing. To be more specific, continued rising demand for the commodities produced by farmland, i. e. food, will continue to drive values higher, whilst at the same time, restrictions on expanding the amount of farmland place a downward pressure on supply, again pushing up values.

It is a complex picture with many factors to measure and take into account. As commodity prices rise, demand for land increases, and supply also rises if more land is brought to production. At the same time, if yields increase then less land is required, but if production capacity is lost, as we are more often witnessing due to climate change, urbanisation and land degradation it is more likely that more land, which is not available will be needed, therefore existing farmland becomes more valuable and prices rise.

Farmland investment should be viewed at worst as a mid - term strategy and ideally as a long - term hold, but understanding the short - term fundamental drivers such as commodity prices allows the savvy investor to identify the best opportunities to purchase. The objective of the Investor should be to clearly understand the longer term trends, thus empowering the investor to make the correct decisions.

It is my opinion that investing in farmland will provide the investor with by far the best opportunity for mid to long - term capital appreciation and sustainable income. Choosing the right market in which to invest should be a decision taken based on the current pricing of the asset compared to its true value.

A lack of credit and depressed market sentiment are also playing a role in presenting off - market opportunities for investors to acquire assets at good prices, and a very simple analysis of the revenues generated from a farm, minus production costs, will tell the Investors if that land is good value. If one were to buy farmland in the UK at today ' s average price of around 14, 000 per hectare, we know that we could grow 7. 5 tonnes of wheat and sell it for around 160 per tonne creating a revenue of 1, 200, minus production costs of about 300, leaves a net annual income of 900 for a 14, 000 investment, equating to an annual return of 6. 4 %. Buy farmland in south America for $4, 000 per hectare and your ROI shoots to around 16 %, and in Australia you can buy land so cheaply right now that you could return an income equivalent to 40 % annually.

Many opportunities exist for private investors to take advantages of these trends without taking on the complex operational responsibilities associated with farmland ownership. For more information on farmland investment opportunities available for private investors, contact David Garner at DGC Asset Management.

Agriculture Investments - A Strategy to Maximise Return on Investment

Around 225, 000 people are exceeding to the global population every single clock, all of whom need food and fuel. At the same time, incomes in developing economies are rising, causing a shift toward a more respected and more resource powerful westernised slop based on meat. Considering that 1kg of meat requires the input of 7kg of grain as animal feed, this combination of more people and higher consumption per capita adds tremendous strain to current stretched agricultural productivity.

The amount of farmland on the planet is in fact falling. Urbanisation, soil degradation, water scarcity and climate change all associate to reduce the stock of land suitable for growing the essential crops we need.

In light of this on - going and increasing disparity between supplies of farmland and demand for agricultural commodities, investors are turning to farmland in order to capture financial gains as food prices rise and productive land becomes intrinsically more valuable.

There are a range of farmland investment strategies to consider, from simple acquisition of land and leasing to farmer, through to sharing crop revenues in a joint venture under a contract framing agreement. But certainly the most profitable agriculture investment strategy is greenfield development; the acquisition of land with agricultural potential and converting into productive agricultural assets through the establishment of infrastructure such as irrigation, storage facilities and road, as well as amending the soil profile to ensure maximum productivity.

Greenfield farmland developments add substantial capital value to previously unused land, as well as positively impacting the current black hole in agricultural productivity that leave over 1 billion people hungry around the world each year. Investors also benefit from on - going income from crop revenues as newly converted land produce an annual yield from the production of crops.

The majority of future growth is widely expected to come from developing regions including Asia, Africa and Latin America, where economic growth outpaces that of the west by a huge margin. It is these key growth regions that the appetite for agricultural commodities will grow the most. In fact, in Germany the population is expected to get smaller in the next 40 years, whilst in China the population is expected to expand by some 30 % in the same period.

It is fair to say then that agriculture investments based on the development of suitable land, in close proximity to key growth regions in Asia, Africa and Latin America offer investors the best opportunity to capture not only short term appreciation through development, but also long - term growth and income driven by population growth and rising incomes.

Agriculture Investments - A Warning to Investors

As stock portfolios project to spectacle volatility, many investors are now starting interrogate alternative investments, with one area of particular interest being agriculture investments, or specifically farmland investments.

I think it is now particularly relevant to say bring up that oft - used and scarcely heeded piece of investment advice; " Past performance is no guarantee of future performance and investors should of course be cautious in the use of historical data when making investment decisions. "

Now the reasons for investing in real assets that produce essential wares in perpetuity are sound. Population growth and rising incomes drive demand, whilst urbanisation, water scarcity, climate change and a host of other factors suppress supply, and these two fundamental trends stack up to drive up food prices and with them, farm revenues and the important value of farmland assets.

These, in my assessment, are the reasons to set up in agriculture, and although history and hindsight can demonstrate how these assets and markets have performed during certain conditions, the wise investor should perhaps look to the future, rather than the past to ascertain the likely performance of their holdings.

As witnessed recently in equity markets across the globe, the time frame used to provide data for predicting future events, is crucial. Rather than simply use the longest data set available, one is better positioned perhaps to use data from periods in time where economic conditions are most likely to be characteristic of future conditions.

A good example that has relevance to agriculture investments is the depression of commodity prices during the 1980 ' s, where a reduction in demand for food from developing countries resulted in the accumulation of large grain stocks. If you feel that in the future, demand from developing nations is likely to fall, then data from this period would be most relevant to use to project future commodity prices as you believe the same set of conditions will prevail. In this set of circumstance and taking this set of data, you would project that commodity prices and farmland prices would fall.

If you believe that demand for commodities such as food will continue to grow, as it did in the 1970 ' s, then you would expect commodity prices and farmland prices to rise as they did then, based on the assumption that the same set of circumstances in terms of supply and demand will ultimately prevail. Using this piece of historical data alone would lead you to believe that agriculture is a strong buy, and farmland investment assets will continue to rise in value.

Again, when making your own decision as to whether you feel farmland values will rise or fall ( they will surely do both over time ), you should base your answer on whether you feel that demand is likely to increase, and whether we have the capacity to increase supply accordingly. The answer to these questions lies in the present, not in the past and one could simply ask three very simple questions:

Will there be more people on Earth in 10, 20, 30 or 50 years? Is there more land to produce crops to feed this excess? If not, can we increase the amount of food we grow per hectare?

It is the answer to these questions that should define your opinion on asset values in the agricultural sector, standalone facts and statistics form the past.