Agriculture has been associated with the production of essential food crops but at present, it includes forestry, dairy, fruit cultivation, poultry, beekeeping, mushroom, ornamental production, etc. it also involves the processing, marketing, and distribution of crops and livestock products and services.
There are plenty of reasons to invest in agriculture
Agriculture has great impact on the rest the economy
Agriculture is the backbone of the economic system of a given country.
Countries which put more efforts in agriculture and gain strong agricultural outputs see faster reductions in poverty, more available jobs both on and off the farm, and higher productivity in non-farm sectors (education, health, etc.) of the economy.
Agriculture for food security
In sub-Saharan Africa it is a primary industry where smallholder farmers account for 60 % of population account. When you consider that we will need an increase in food production by 2050 from 40-80% to 70% to keep up with a growing global population, it is easy to see that investing in new opportunities in rural farming and agribusinesses is important.
Agriculture is more sustainable
Investing in agriculture is typically a long term venture. Depending on the farm’s location, current commodity prices and other factors, returns on investment range from 3-5% for commodity based land, or 10-15% for specialty crops.
Because agriculture investments are long term, they can be set up to be kept in the investor’s family and passed down to future generations. Agricultural investments can appreciate indefinitely.
Agriculture keeps farmers in the Business
Investing in agriculture can be a strong and fruitful venture.
We all need to eat. Farmers keep people fed and clothed. Trends show that the amount of food, especially protein, people take in per day is steadily increasing. At the same time, some experts fear that at the rate of the population’s consumption, soil could become a scarce commodity, making the demand for fertile agricultural land even larger.
Opportunities in agriculture
Agriculture has investment opportunities such as:
- Food processing for domestic and international markets.
- Value addition: washing and roasting opportunities.
- mechanization opportunities: irrigation and sale of agricultural equipment for large-scale farming.
- Distribution and cold chain: need for improved infrastructure for export products.
- Poultry: large-scale farms, slaughter houses and export of meat and feed mills
- Beef farming for meat sales
- Milk processing: cold chain, processing of milk, yoghurt, cheese, butter etc
As technology has advanced, we have seen the agriculture industry take a backseat. It shouldn’t be seen this way. Families inherit their farms generation after generation.
Your investment provides capital for farmers to maximize their yields and productivity. You help fund farmers’ access to inputs (seeds, fertilizers or the equipment) they need to make more production.