The discovery of agriculture has played a key role in propelling human civilization. More so, agriculture has led to great advances in science and human development. And, in the current era of globalization, the relevance of agriculture cannot be underestimated. Some specialists believe that investing in agricultural stocks guarantees more returns than investing in other commodities such as gold and precious metals. Trading in agricultural stocks involves buying and selling the stocks of companies taking part in the farming business.
Here are some reasons why you should consider investing in agricultural stocks:
- Foremost, the demand for food to feed the ever-growing world population will always increase. The current world population is approaching 7 billion. These people will need food to eat. This means that many companies will come up to produce adequate food to sustain this population. Therefore, investing in agricultural stocks will always lead to profits.
- It is estimated that the world consumes an average of 3,000 bushels of grain crop every second. This figure is about two times what we consumed back in the 1970s. If the current trend continues, it is estimated that this figure will more than double over the next two decades. This illustrates that the amount of pressure on the global food supply network is huge, and this should give you a good reason to invest in agricultural today.
- Next, investing in agricultural stocks provides a good blend between social work and business. If you invest in agriculture, you will be spurring the country’s economic growth and creating jobs for other people. Particularly, this would lead to better quality of life for those in the rural areas. As such, it is a win-win situation for everyone; and more so, you are making another person’s life better.
- Some businesspersons do not like throwing their money in agricultural stocks because they think it is a risky avenue of investment. Just like any other type of investment, agricultural stocks have their own risks and benefits. However, its risks can easily be surmounted if you learn how to manage them. And, the advantages of investing in the agricultural sector far outweigh its disadvantages.