Investing in Agriculture
“Agriculture is our wisest pursuit, because it will in the end contribute most to real wealth, good morals and happiness’’ Thomas. Long time ago some wisest person think of growing crops is far better than to rear large, horrible and toothier animals, with the passage of time human brain get evolved and evolved and become superior from past one, eventually in present time we are at the stage where with the evolve human mind the protein that we got in the past from huge biomass are transformed now in one or two kg broiler which is indirectly a agricultural commodity. With each passing moment the planet earth will have to take the burden of rising population and to feed them on less land. So the interest of common people should be raised to invest in agriculture to stand against this terrible scenario that we face today .Yet’s being an agricultural country we never had intentions to treat agriculture to study as a basic subject in schools it even a less important topic near to our policy makers, the situation depicts more painful picture when son of a farmer are not ready to follow his father foot steps to own agriculture as his profession. On the other side how you convinced people to adopt it as a profession when u see highest rates of suicide is recorded in India, Canada and even in Pakistan is committed by farmers due to lack of profit and many other reasons, it’s a terrible business .
Why investment in agriculture?
In the above disturbing scenario agriculture still a profitable business if government support it and one do it with a rational mind , somehow agribusiness is better than gold or silver because farmland is a intrinsically useful thing , there are some reasons why agriculture are as best as green gold.
1-World grain consumption rise with rise in population: On an average world consumes 2500 bushels of grain crop/second that’s almost double we ate in 1970s , millions of people in Pakistan ,India and china joining the middle class they eat more grain than meat.
2-Fullfil the demand of biofuel: Let’s supposed ethanol alone for a moment, with increasing numbers of vehicles day by day oil demand is increased ,alone ethanol can’t achieve this target so we have to depend upon agricultural product to fill this gap.
3-Falling per person farmland: We are losing fertility of top soil, eventually soil become loose, eroded, clumpy and lack of nutrients our land per person is falling ,here we are at the stage where we are slipping below 1 acre/person ,we can’t afford more division anymore.
4-Low water supplies lower the productivity: For growing of crops and hydrated our animals we need more water supplies some countries are already ran short of it.
How we can invest in agriculture? “Investing in agricultural research, development and giving subsidy to the farmer on agricultural inputs is the need of the hours” S.K Boson. We can invest in agriculture through number of ways like “real estate investment trust” in this system owner purchase land and give it to the farmer on lease. Investor also has access to the public and private companies that operate in the agribusiness. Crop production one of most vital opportunity in this field in which a firm plant, grow and harvest the crop. Many industries also involves in packaging, processing and distribution kinds of activities. We can also buy shares of supporting industries like seed, agricultural machinery, fertilizer and pesticides. Investors can also invest in farming and agri-industries through mutual funds, when invest in mutual funds companies’ judge investor on past performance. Most charming field for investor in agriculture is agricultural commodities e.g. wheat, barley, coffee, cotton etc which gives more benefits in their business. “Poor grain handling and storage alone result in 15-18 pc losses of grains and 25-40 pc losses in case of fruits and vegetables “Dawn. So investor can also invest this subject by introducing war house and by providing best storage facilities to the farmer.
The bottom line: Agriculture is a heaven for investors which give its leisure to whom who properly manage it. In Pakistan government should pay special attention to this industry to bringing foreign private and public agricultural industries under the umbrella of government writ through legislation. Laws should be make in the sense that state engage not only government but also private companies to invest on the farmer by providing quality seeds, pesticides fertilizer and other product and take their rewards after succeeded crop harvest
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Authors:
M.shafique aslam, sajid Hanif, M.Irshad, Irfan Yousuf.
Universty of agriculture,Faisalabad .
