Could You Double Your Returns By Investing In Agriculture?

Agriculture is the oldest industry on the planet, stretching back more than 10,000 years to the dawn of civilization.

Today, many entrepreneurs view it as something that is in decline. But that’s not true at all.

Farming is on the rise all over the world. And demographic factors are supporting its continued expansion.

In this post, we look at some of the reasons investing in agriculture as an entrepreneur could double your returns.

Take a look at the following.

 

Demographics Are In Your Favor

The world’s population is set to grow to around 10 billion by 2050 and possibly continue growing after that, depending on economic circumstances.

For farmers, this is good news, indeed. It means that the total global market for food is going to continue to expand. Billions of more people will need feeding. And somebody is going to have to produce crops for them.

The intensity of farming is also going to increase. While the global population is only due to growing by 30 percent over the next thirty years, the total amount of food that farmers need to produce will rise exponentially.

The reason for this comes down to the increased consumption of animals. When countries get weather – which is what is happening to most places across the world right now – people shift to meat consumption.

Meat, however, doesn’t emerge ex nihilo. Instead, it comes from feeding livestock grain. It takes about ten pounds of grain to produce a pound of meat, meaning that the total amount of grain the world needs to make will rise exponentially over the coming years.

 

Technology Is Improving

Technology is also making a big difference in the agricultural sector. We’re seeing a new software-driven framework that is allowing farmers to improve on 20th-century mechanization.

Things like the humble solenoid valve and combine harvesters massively ramped up productivity.

But now, technology is getting to the stage where you require virtually zero human input at all.

For instance, machinery manufacturers are now making systems that will automatically harvest grain in a field without the need for a driver at all.

The reason they can do this is that the average field is a relatively predictable environment.

There’s no risk of pedestrians randomly stepping out or the car in front slamming on the brakes, unlike public roads. The environment is much simpler.

We’re also seeing software and sensors taking over the management of crops. Entrepreneurs are looking at ways of using detectors to automate watering and maintain optimal growing conditions without the need for physical inspections.

 

The Purpose

Entrepreneurs want to feel like they are part of something bigger than themselves. Becoming heavily involved in agriculture could help lift more people out of poverty and ensure that nobody goes hungry ever again.

Think about it this way. Imagine you come up with a business model that makes it so that people can eat for just a few cents per day.

If you pull it off, even people in absolute poverty can get enough to eat, no matter what.