According to the statements passed by many investment professionals, agriculture commodities are going to play a very long inning in the market. It has a very simple logic behind. The number of people is increasing all over the globe, where as the total farmland area is decreasing. Still food demand in increasing due to which the agriculture trading is benefited a lot. China’s development is also one of the major reasons behind rapid rise in food prices. Things that China is buying a lot, we as investors want to keep it as investment. The best way for making money in the agricultural sector is investing directly in agriculture stocks.
It includes farm equipments, fertilizer companies, and other similar industries. Another way is to invest in agriculture futures through Exchange trade funds. You can do it on London stock exchange. Advantage of stocks is that they are easily tradable by any person who has an online brokerage account. One disadvantage is still there that it is just a financial instrument and can fluctuate widely in price. Investors must try investing directly in farmland. Many tend to overlook this aspect, but actually farmland investment is a very secure form of investment. Farmland investment is even stable and tangible. It is far better than putting money in stocks.
As an investor you will be benefited from global trends in agriculture that we have discussed earlier. There is no big risk involved in this field; you will get a secure profit. Today the farmland options are very developed for each and every individual investor. It is best to pool the total investment of many investors and buy a single big farmland. It will be highly beneficial. A yearly dividend is required to be paid. You will also get an opportunity for long term capital gains.
Now the options are developing even more. Trading market has received lots of benefit in the past few years. Most probably it will continue to show the same trend. Long term capital gains are highly probable in this field. Population is continuing to rise, hence this result is suspected. If you are also looking for a long term investment, it is best to do it in the agricultural sector.