AGRICULTURAL INVESTING

An agriculture investment is any investment into agricultural land or into a business that supports the agribusiness industry. Agricultural land is also referred to as farmland, arable land, cropland, or cultivated land. Agribusiness is any business that deals with agricultural products or services necessary in farming. This can include businesses like seed or fertilizer distributors, timber businesses, tractor companies, and processing or packaging facilities.

At cyphmeta , we are passionate about bridging the gap between investors and agriculture. Farmers will have to produce 70% more food by 2050. With demand for food skyrocketing and the availability of farmland decreasing, we believe that investing in farmland is a smart move.

The world’s population is growing, and rural areas are dwindling. Savvy investors see this as an indicator that demand and associated prices for agricultural areas and farmland are set to rise. Investing in agriculture can offer investors opportunities that are ripe for the picking (pun intended).

No matter your investing goals, cyphmeta is here to help.

There is only so much land on our planet. Arable land, land sufficient for traditional farming, is limited to areas with adequate moisture, soil, and temperature. One large influence of the continued and growing demand for agricultural land is the fact that the world population has quadrupled in the past century, and it's estimated the demand for food will increase between 59% to 98% by 2050.

OWN LAND AND FARM DIRECTLY

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Some investors who have an interest or passion for farming may choose to invest in agriculture actively by owning the land and farming it themselves. While this method of investing in agriculture is by far the most time-intensive and requires substantial knowledge of how to properly farm land, it presents a unique opportunity to reap the financial benefits of agriculture while pursuing alternative farming practices such as regenerative agriculture or a smaller-scale sustainable agriculture operation.

In many rural or farming areas, smaller parcels of depleted land -- which many larger farming operations will overlook -- can be purchased for pennies on the dollar. The farmer can heal the land using sustainable development practices, in turn opening up the potential to help reverse climate change by sequestering carbon, leading to a higher crop yield than traditional farming operations.

An alternative to farming the land directly is buying the land and renting it to a farmer. According to the USDA, 39% of farmland is rented. It's a hands-off way to invest in farmland and agriculture without having to do the actual farming yourself. This allows the landowner to pay down the mortgage on the farmland while enabling the farmer access to land without having to come up with the money to purchase it. They are typically longer leases, meaning they offer a stable and low-risk way to invest.

Historically, the price of food increases over time, which means it can be an effective hedge against inflation and provides a safety net against the growing trend of food insecurity in our global economy. As with any investment, due diligence and a proper understanding of what you're investing in are critical. You may wish to consult with a real estate agent in the local market, an accountant, or an attorney after doing your initial research to get more detailed information on the specific implications of the agriculture investment you're interested in.