With a demand-driven by the growth of the human population itself, the growth of the food & agriculture (F&A) industry is a certainty. Agribusiness forms a $5 trillion global industry that is only getting bigger. If current trends continue, by 2050, crop demand will increase by at least 100 percent.

Income-producing agriculture is a real asset that provides passive income and a hedge against inflation, and it’s an attractive investment for a diversified portfolio. These investments provide tangible yield derived from naturally produced products with little to no correlation to conventional assets and securities, such as stocks, bonds, and real estate. Farmland has proven to be a unique asset class that has delivered superior returns with relatively less risk or volatility during market corrections.

Benefits

There is no better asset to own than one that increases in value over time and keeps pace with inflation.  Here are some of the various benefits an investment in agriculture can provide:

  • More Stability than the Stock Market: When you invest in agriculture, you are investing is a physical plot of land. This land’s value will only appreciate over time, unlike stocks that often depreciate.
  • Benefit Generations to Come: 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. Agriculture investments can appreciate indefinitely.
  • Opportunity for High Returns: Farmland returns have averaged more than 25% and with the demand for farmers to produce up to 100% more food by 2050, now is an opportune time to consider an investment in farmland and capitalize on those returns.
  • An Excellent Hedge Against Inflation: Over time, farmland has proven to have a positive correlation with inflation. More so than bonds, the stock market, and even gold. On average, no investment offers a hedge against inflation like farmland.
  • Agriculture is better than real estate: Agricultural investment provides a superior solution for asset investment that increases in value over time and generates higher returns when compared to real estate whose returns do not exceed 15% and are volatile depending on the market situation.