Investment is a way to secure a future for yourself, your family and your business. However, there are many investment opportunities, ranging from short and long term monetary investments, property, vehicles, bullion and gold, among many others. However, the global financial markets have been unstable over the past few years in response to the worldwide economic downturn. This has created a situation where taken for granted investments are now not returning the same levels of risk and returns. For this reason, other options are being sourced, with agricultural investment coming to the fore for many individuals and organisations.
Recent years have witnessed a renewed interest in agricultural investment. In many cases, this new momentum has translated into large-scale acquisitions of farmland. As a result, the popularity of a managed funds investment approach to agricultural investment has grown dramatically, with companies that own and operate dairy farming and grazing support share farming locations throughout New Zealand becoming a serious investment opportunity for the general public as well as organisations and corporate bodies.
The demand for agricultural products is expanding rapidly, which not only increases the value and returns of agricultural investment, but minimised the risk. A number of changes worldwide are taking place that have implications for the rural and agricultural sector. Population growth, improved incomes and shifting dietary patterns continue to increase and diversify the demand for quality food and other agricultural products.
The question arises as to why use a specialist agricultural investment company. Wouldn’t it be better to simply invest in a block of rural land and give it a go yourself? It would be nice if it were that simple. The value on return is directly related to two key components, being the productivity of the farm and the increasing land value. However, to manage, sustain and increase both of these factors, an in depth knowledge and experience base in farming and agricultural management and processes is an essential antecedent for this to occur. This is exactly what these agricultural investments firms bring with them… the knowledge, experience and staff to ensure that the agricultural operation continues to deliver outstanding returns, based on solid business planning, expertise and farm management.
When you are contemplating an investment, take the time to seriously consider agriculture as a viable alternative to mainstream investments. With increasing land value and demand for quality agricultural product worldwide, it is a sound option with growth potential.