An agriculture investment is any investment into agricultural land or into a business that supports
the agribusiness industry. Agricultural land is also referred to as farmland, arable land, cropland,
or cultivated land. Agribusiness is any business that deals with agricultural products or services
necessary in farming. This can include businesses like seed or fertilizer distributors, timber
businesses, tractor companies, and processing or packaging facilities.
At Kian Capitals LTD , we are passionate about bridging the gap between investors and
agriculture.
Farmers will have to produce 70% more food by 2050. With demand for food skyrocketing and the
availability of farmland decreasing, we believe that investing in farmland is a smart move.
The world’s population is growing, and rural areas are dwindling. Savvy investors see this as an
indicator that demand and associated prices for agricultural areas and farmland are set to rise.
Investing in agriculture can offer investors opportunities that are ripe for the picking (pun
intended).
No matter your investing goals, Kian Capitals LTD is here to help.
There is only so much land on our planet. Arable land, land sufficient for traditional farming, is limited to areas with adequate moisture, soil, and temperature. One large influence of the continued and growing demand for agricultural land is the fact that the world population has quadrupled in the past century, and it's estimated the demand for food will increase between 59% to 98% by 2050.
Some investors who have an interest or passion for farming may choose to invest in agriculture
actively by owning the land and farming it themselves. While this method of investing in agriculture
is by far the most time-intensive and requires substantial knowledge of how to properly farm land,
it presents a unique opportunity to reap the financial benefits of agriculture while pursuing
alternative farming practices such as regenerative agriculture or a smaller-scale sustainable
agriculture operation.
In many rural or farming areas, smaller parcels of depleted land -- which many larger farming
operations will overlook -- can be purchased for pennies on the dollar. The farmer can heal the land
using sustainable development practices, in turn opening up the potential to help reverse climate
change by sequestering carbon, leading to a higher crop yield than traditional farming operations.
An alternative to farming the land directly is buying the land and renting it to a farmer. According
to the USDA, 39% of farmland is rented. It's a hands-off way to invest in farmland and agriculture
without having to do the actual farming yourself. This allows the landowner to pay down the mortgage
on the farmland while enabling the farmer access to land without having to come up with the money to
purchase it. They are typically longer leases, meaning they offer a stable and low-risk way to
invest.
Historically, the price of food increases over time, which means it can be an effective hedge
against inflation and provides a safety net against the growing trend of food insecurity in our
global economy. As with any investment, due diligence and a proper understanding of what you're
investing in are critical. You may wish to consult with a real estate agent in the local market, an
accountant, or an attorney after doing your initial research to get more detailed information on the
specific implications of the agriculture investment you're interested in.