Food prices are going up. And while you and I might not want to pay an extra $0.50 for a carton of milk, investors are seeing dollar signs. This might be a great opportunity for those of us looking to invest in the farming sector, and there are a few ways to do it.
Farming is one of the biggest industries in the world. And while, like every industry, it fluxuates, the truth is that at the end of the day we will always need food. Which means that farming will always be around (though it is changing as technology improves).
While I am no expert in farming investment, I do know that the growing need for food in parts of the world like China, India and even here in North America means great things for those looking to invest in the farming sector. If that’s you, here are a few ways you can do it (without actually opening up your own farm):
Get in on the Farmland
If you’re a budding real estate investor, you might consider investing in the apartment complex of farming: farmland rentals. That’s right, not everyone who’s a farmer actually farms land that they own—I can actually attest to this because my grandfather who used to be a farmer used to rent out portions of his land that he was unable (or at times unwilling) to farm on his own.
There are small firms and funds set up and managed by people who know what’s what (thankfully, you don’t need an agriculture degree to get in on this) that rent out farmland to those willing to put it to good use. And you can make some side cash by buying in on it.
Get Some Agricultural Stocks
Yes, you can get farm-related stocks!
Investments in agriculture can be iffy from time-to-time due to the inconsistency of nature, I mean, you’re not going to get anything from your farm stock if a drought kills all of the canola plants in a year or a fire runs through the corn field. But if you’re a higher risk kind of guy or gal you might be into that.
However, if you’re looking for something a little more reliable I have two words for you: farming supplies. Farmers need tractors, tools and fertilizer, and there are publicly traded companies with stocks that you can purchase the provide those services. So, if the stock market is your money language, then this might be right up your alley.
Turn to Biotech
While this might not be the first place that your head goes when you think about how to invest in the farming sector, with technology improving at the rate it is and food in high demand, you can be that the biotech industry is all over that.
The biotech industry is where you find all of those fancy scientists combining a pear tree and canola seeds to come up with pear-flavored canola oil (which 100% does not exist as far as I know), and you can help them do just that by getting in on this industry. Especially because the start ups are growing like weeds (pun intended). Who knows, you might be the proud contributor to a new breed of mushroom.
Do you invest in the farming sector? Share your experience in the comments below.
Looking for More Personal Finance Posts?
- How Much Should You Allocate To Hsa?
- How I Prepare For Tax Season
- Try One Of These Multiple Income Stream Ideas This Year