Why and how to invest in the agriculture sector worldwide? Learn in this post and find possible stocks and ETFs to invest in 2020.
Why to invest in Agriculture?
I have just found some ideas on how to invest in agriculture for the long-term and I thought I will share them with you.
The lockdowns impacted the supply/demand chain and whole logistics in agriculture. After the start of lockdowns, the demand for meat decreased rapidly.
In fact, all restaurants, bars, schools and other food-related facilities closed. At the same time, other big consumers of agriculture products such as airlines, cruise ships and the whole traveling industry stopped consuming meat and other food products.
In turn, they canceled food orders from fresh meat sellers. Because of this a lot of meat, animals, vegetables and other commodities were left to root or were killed. Economically, it’s a huge loss for the agriculture sector.
These losses have a very negative impact on food providers because they lost a lot of revenue.
At the same time, lockdowns restricted the immigrant worker movement and many food facilities were without workers for some time. In turn, they cut food production. For some agriculture businesses, all demand for their products just vanished almost overnight.
Because fewer businesses will produce food products, they will be able to regulate food prices easier and you can be sure that they will not decrease them in the future.
Furthermore, the sun is entering a solar minimum, which is known for having some influence on food quality. I remember I read once about it in a book written by a scientist in 1940: The Secrets Of Life by Georges Lakhovsky.
More reasons to invest in Agriculture
Recently, various countries banned the export of their food supplies, such as wheat, rice and other products. It indicates that some shortages of products already happen.
Do you even know that such things are happening right now? The news does not talk about it.
I just heard a few days ago that some countries in Europe plan to shut down bars and restaurants again.
While globalization allowed to reduce the price of goods, food and other products, at the same time it reduced the domestic output. Reduction in domestic agriculture makes countries more dependent on imports and more vulnerable to various political decisions and traveling/transportation limitations.
By investing in such sectors as agriculture, we can position ourselves for long-term constant gains in the future. The agriculture industry will have to adapt to current changes and it will require capital investments for more automated food processing, fertilizers and solving logistics problems.
There is a huge chance of increasing food and living costs in the near future. If investing now in the agriculture sector some gains might be achieved in 5-10 years.
Learn more about problems in the agriculture sector.
How to invest in Agriculture?
You can easily invest in agriculture through most online trading brokers, as an example Interactive Brokers.
But where exactly to invest? Certain commodities and ETFs might be great investments with huge gains. However, not the whole agriculture sector might grow and your investments must be placed strategically.
Investors at Capitalist Exploits can help you to start investing in the agriculture sector.
Get investment ideas - Capitalist Exploits
Capitalist Exploits is a group of investors that sells various investment ideas targeting 5-10x gains.
The newest investment area of Capitalist Exploits is agriculture. Because of lockdowns, the fragile global food supply chain was shaken. This most likely will lead to increased food prices.
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