Posted on by Mitch Minarick
We all know that diversification is a critical element to any wise investment plan, but it can be difficult to know the best approach. In considering potential strategies, there is one sector that should not be overlooked: Agriculture. Here are three reasons why:
1. Agriculture is timeless
The world could change in a million ways and one thing will always be the same: people need to eat. In order for us to get the food we need, farmers will need to grow it. This process of producing and consuming food has been a constant through the ages, making agriculture a thoroughly time-tested investment opportunity.
2. Agriculture is growing
Two global trends are driving the demand for agricultural commodities. One is continued population growth, with projections of 9 billion people by 2050 and 11 billion people by 2100. The second is rising demand for meat, fueled by a growing number of societies whose consumption preferences have shifted from grain-rich diets to protein-rich diets. Taken together, these trends make agriculture a promising investment opportunity.
3. Agriculture is different
When you invest in agriculture, you’re investing in an asset class that is non-correlated with the stock market. This is important because when an entire portfolio consists of similar assets, a singular market downturn can erase gains made over many years. Non-correlated assets like cattle provide an excellent safety net during stock market downturns, helping you to maximize your overall returns.
Thanks to FarmAfield's online marketplace, you’re just a few clicks away from diversifying your portfolio with a tangible, timeless asset. So give FarmAfield a try today.