Green, Sustainable Investing - Why Agricultural Investments?

Agricultural Investments, especially investments in green, sustainable projects, are attracting a great deal of interest lately. Here, we take a look at the reason why.

sustainable investment

Safety in Stormy Times

The financing Crisis has turned even old, reputable, well financially consolidated and incredibly professionally managed businesses into high-risk investments. Currently, the real estate markets do not react while they used to do. Investing in Start-Ups via equity finance creates an even bigger risk, since only hardly any start-up companies are likely to survive.

Imbalance in Demand and supply

Going back to basics, and committing to fundamentals makes sense under these circumstances. The world is heading towards a population of 6.8 billion people (UN: in year 2015) which will need something you can eat every day. There will always be a stable demand for basic foods. Prices may fluctuate, but there'll always be a market.

impact investing

Every minute of each and every day, 150 folks are added to the world population (US Census Bureau, January 2009) and so they all need food. As both the population and life span grows at a fast rate, the need for agricultural products increases rapidly.

It's highly likely that green sustainable investments in agriculture will conduct extremely well in the future. Were convinced that investing in green products is often a secure way to sustainable profit.

The UN conservatively predicts how the world's population increases by more than 45% throughout the coming 40 years. This means that the earth will have to feed another 3,800,000,000 people.

In the same period, International Grains Council (a connection of the leading food exporting countries) is predicting the farmland intended for cereal production to fall by 0.2% - 0.5% per year for the coming Forty years.

The reasons for this are several:

• During Global Warming, deserts in Africa and Asia will grow and sign up for millions of hectares of potential farmland.

• The attraction and trend in growing bio-fuel along with other biological alternatives to fossils will reduce the farmland available for food production, including for the essentials such as wheat.

• Since the population gets bigger, urbanisation and town developments are being created in the expense of existing and potential farmland.

• The trend has been clear throughout the last 5 years.

Since 2005 the creation of grain has been smaller compared to the demand. World-wide, the roll-out of available farmland per capita has reduced by half over the past 50 years, and further reductions are forecast.