Category: Agriculture Issue, Agriculture Product by javanapoleon on June 20th, 2010 at 2:16 am
Water is a necessity when it comes to agriculture. Just ask anyone who is along the Mekong River as it leaves China, the water doesn’t flow most of the year any more, not at all, no water. Why? Well, drought issues, plus, China has put in tons of hydro-electric dams on the upper river. It’s a major issue, not only for those who live along the river to fish, and need water to irrigate, but to drink also. Now they must dig wells, which is fine for a while.
This just underscores the future of agriculture around the world. And just because we live in abundance in the US doesn’t mean we are not without risk. In fact, the Ogallala Aquifer is challenged due to the discharges for farming and city water to the point that eventually it could someday run dry. In some areas it already has, for instance along the WY – Nebraska borders. Read more... (449 words, estimated 1:48 mins reading time)
Category: Agriculture Product by javanapoleon on June 20th, 2010 at 2:14 am
Many investors shy away from agricultural investments because of the misconception that agriculture is a risky venture. However, whether the venture is risky or not really does not lie in the sector, but more on the investor himself. Agricultural investments have its defined risk and benefits. It will indeed be very risky if one were to invest in low quality land. However, the case if very different if we were talking about prime investment grade farmland which provides stable and consistent returns while appreciating the principle.
Investors who do not have a foot in the agricultural commodity market is sorely missing out. I would guess that almost 90% of those reading this has absolutely no idea how the agricultural commodities can benefit them. This is not your fault entirely as most stock brokers and hedge fund managers are always calling for more buys into properties and bonds. Investors often call the agricultural commodity ‘risky’, but these are the very same folks who buy heavily into funds where they watch their shares go to zero. No commodity has ever gone to zero, and they never will. Read more... (468 words, estimated 1:52 mins reading time)