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Why You Should Invest in Agriculture

February 14, 2014

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Investing in agriculture? Why would people do that?

“For want of a nail the shoe was lost, for want of a shoe the horse was lost; and for want of a horse the rider was lost, being overtaken and slain by the enemy, all for the want of a horseshoe nail.” Benjamin Franklin

Sometimes it’s the little things that come up – a nail – that need dealt with before it escalates. This is often no truer than in agriculture, where a minor thing can lead to major consequences in short order.

It might be a nail, or a gate latch, or a bolt. It might be a trailer, or truck or tractor. It might be a grain bin, barn or other improvement to help a business along. In varying degrees, agriculture is a risk and a blessing – a means of investment and frugal spending.

“So much for industry, my friends, and attention to one’s own business; but to these we must add frugality,if we would make our industry more certainly successful.” The Way to Wealth – Benjamin Franklin

Investing in agriculture isn’t a new thing. There are many ways to invest in agriculture, and most are catered to large investors with ag related traditional type investments.

There’s the futures markets, and ag related stocks like John Deere and Fresh Del Monte. These can take a traditional investment route. There’s some who buy land and subdivide, with real estate being a finite commodity.

Now I admit I’m not well versed in all the futures, stocks and city investments. Many say those are “safe” but yet many have lost everything to a bad investment plan. Diversification can benefit more than farms. What about a different route? What about empowering investments with direct action?

Sometimes the investment is a minute of time. Our friends at Four Country Gals are working on votes to get towards funds of a new product.

Our Traditional Mexican Cajeta is all about the goat milk! Fresh, snow white, sweet… http://t.co/FQu90mE8RK RT ‪#‎love‬ ‪#‎food‬ ‪#‎foodiechats‬

OLYMPUS DIGITAL CAMERAThis is a topic that’s dear to our hearts, of course. As a grass roots, slow money type place, we are not big as John Deere and we don’t have the bankroll of Tyson’s or Smithfield’s. Many other countries are investing in American agriculture, and it’s time US investors do to.

Investing in agriculture can help fund research. It can fund farms that minimize the use of pesticides and herbicides, and use management that looks not just at profit, but at how that profit is achieved.

An investment in agriculture can help a farm upgrade to put in safer storage for agricultural chemicals, or improve a small farm with wildlife belts that help the farm and the wildlife surrounding it. It can help farms find new ways to improve soil quality and reduce erosion. It can preserve heritage breeds of livestock and heirloom varieties of seeds, while at the same time providing food for people.

These are all great reasons for investing in agriculture. Need more? In some cases it can provide tax benefits. It empowers small farms to find their way in the marketplace. It helps with value added products, such as our friends in Utah are doing – we’re not retiring to rocking chairs yet!

There are many types of investing, of course, and with dealing directly with small and medium farms you can become the bank and participate in a way that you haven’t before. In some cases, it can be at a much higher interest rate too, but not always.

Stay tuned tomorrow for some specific ideas in part two.

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