Showing posts with label Approach. Show all posts
Showing posts with label Approach. Show all posts

Friday, October 26, 2012

Agriculture Investment - How to Approach Agricultural Investment For the Private Investors

Investment in agriculture is now on the radar of both institutional and private investors, with many seeing the asset class as an ideal inflation hedge and a stable source of income in these uncertain economic conditions, here we will push some to explaining how the current market is lending itself to this type of strategy, and the various forms of agriculture investment, and corner out some of the best options available for investors.

The current climate can be defined by three key characteristics; privation of visibility, low interest scale, and the very real threat of inflation caused by quantitative easing and austerity measures. Essentially investors are basket case about stocks and shares being equal limited economic visibility it is impossible to value companies and predict growth or depreciation in the value of shares, also we have gone astray the risk free income that we would normally amass from cash deposits considering interest rates are so low, and inflation will eat into our cash, effectively reducing our wealth.

So how does agricultural investment solve our problem? Let ' s take this opportunity to look at the simplest and most transparent form of investing in agriculture; farmland investment. Firstly farmland shares a positive correlation with inflation; having proven to grow in value quicker than the rate of inflation rises, therefore this type of farmland investment allows investors to grow their capital even in an inflationary environment. Also this mode of agricultural investment enables investors to capture income by renting their farmland to a commercial farmer who will work the land, this effectively replace the lost risk free income that cash would normally provide. Thirdly, investing in good quality farmland has an infallible track record of being low - risk, with a lack of supply and increasing demand for food pushing up values consistently. It is easy for a person of logic to see that demand for food will continue to rise in line with population growth, and there are fundamental limits to bringing any more farmland into production.

So agriculture investment in this form certainly fits the bill when weighed against the current economic climate, and provides investors with all of the ticks for their boxes. So how does one approach agricultural investment in the form of investing in farmland? The answer to this question is long and complex and many factors must be taken into consideration to ensure your agricultural investment turns out to be a profitable one.

Firstly one must consider location, UK, Europe, The America or Australia all present opportunities, but my advice will always be to invest locally, or at least within a structure that allows any future dispute to be handled locally.

Secondly consider the business model, do you want to buy the land and rent it out, or do you want to share in crop yields? I would always prefer to shoulder the commercial farming risk with the tenant farmer and simply enjoy a stable rental income as any default is easily handled by evicting the farmer.

So agricultural investment, does provide income, growth and capital preservation, especially it times such as these, but anyone considering an agriculture investment should at least take on the services of an expert consultancy who will have the investors need at security as their priority. Whenever considering a farmland investment for my clients, it is paramount to properly qualify the requirements of each investor, only then is it possible to recommend a suitable type of agricultural investment.

Wednesday, September 12, 2012

Using a Scientific Approach To Increase Rice Crop Yields

The revolution of elections over the last decades has produced two technologies that will impact in our agriculture in the next decade. These technologies are GPS and GIS. Along with these technologies are wide scope of sensors, controllers, and monitors for the agricultural equipment. In sync they enable the farmers to use the electronic guidance aids to direct the movements of the equipments more accurately, analyze all of the data that are associated with the sources of data, and supply precise positioning for all the actions of the equipment and chemical vitality.

Topcon Precision Agriculture is a business unit of TPS that designs and manufactures precise positioning products and solutions for agriculture. In fact the Topcon Positioning Systems, Inc. ( TPS ) has designed software for the professional farmer. Topcon Positioning Systems has been supplying the agricultural market with the positioning software and hardware technology in the areas of precision land leveling, mapping, water use management, and device control. This is another step filling out the Topcon agriculture product portfolio so to turn out a unabbreviated solution for precision farming. Precision farming is not unparalleled thought as yield mapping and variable rate fertilizer application and then evaluated on only one or the other. The precision farming technologies affect the entire production function of the farm. This kind of farming allows for improved economic analyses. This makes farm planning more complex and easier. There is so much more map date in order to utilize long term cropping plans, salinity controls, and erosion controls. But those farmers who are implementing precision farming are likely working closer with the professionals in the GPS, agricultural, and computing sciences. Precision farming does not happen as soon as the farmers purchase a GPS unit or a yield monitor. It happens as the farmer adopts the new level of management intensity on the rice farm. This includes a better understanding on the types of soils, micro climates, hydrology, and the aerial photography. The farmer should identify first the variance of factors within the rice fields that affect the crop yield before the yield map is acquired.

Over the past decades, larger and faster farm machines have delivered the capacity of the farmers to manage the ever - expanding farms. Farmers have the most part to continue to treat the large fields into uniform elements. Precision agriculture is actually a cyclic process but a farmer can get started on specific site farming at about any time of the year. Normally, farmers need to perform the annual planning, analyzing steps to complete the precision, and data collection. Yield monitoring is possibly the most important foundation of the precision agriculture. The modern yield monitor utilizes sensors in combination of the continuous log grain flow rate during the harvest period. The collected information is then used to precisely evaluate the optimum sowing density, to more accurately predict crop yields, and to estimate fertilizers and other needed inputs. This helps in avoiding unwanted practices to the crop regardless of the local conditions such that it reduces water, labor, pesticides, fertilizers, etc, and more importantly to assure the quality of the rice.