If you€™re interested in investing in something everyone needs and that never goes out of style, you can€™t go wrong with agriculture. The demand for food is consistent and predictable, making it a much more stable asset than, say owning Wall Street stocks.
Investing in farming means you are also doing your part to protect the planet and conserve natural resources, by putting your lot in with farmers who practice sustainable agriculture. Farmers can be natural leaders innovating in this space, since they have the most at stake in developing and adopting sustainable farm practices.
The United Nations€™ Food and Agriculture Organization or FAO reports that climate change has €śboth direct and indirect effects on agricultural productivity including changing rainfall patterns, drought, flooding and the geographical redistribution of pests and diseases,€ť as noted by CNBC.
It reported on DSM co-CEO Geraldine Matchett describing food systems (including farming, production and distribution) accounting for 25% of greenhouse gases. Excessive greenhouse gases are implicated in climate change, and Matchett pointed out that ironically, farmers themselves are among the biggest victims of climate change.
Clearly, it€™s in the interest of farmers to focus on sustainable practices, for their own long-term success.
Improving crop yields can be a potent tool in the fight against climate change. An interesting case in point revolves around 20,000-square meter LED light installation in a farming community in the Netherlands. The World Economic Forum reported on the GLOW art project, which installed a vertical array of LEDs at a leek field. Colored LED lights dance in the night sky over the farm.
Giving off combinations of ultraviolet, red and blue light, the LEDs are designed to boost plant growth. They also have the potential to let farmers use 50% fewer pesticides to protect crops from insects.
Powered by solar panels, the LEDs emit a specific frequency of UV light, which causes the plants to activate their defense system. Doing so helps the crops safeguard themselves from bugs, letting them cut down on pesticides but maintaining the same yields at harvest time.
So, the LED lights help with sustainability in multiple ways. They use less power than conventional lights (such as in a greenhouse for farmers that grow under very controlled conditions), and they allow farmers to slash the amount of pesticides.
It€™s another example of innovative technology helping farmers to farm more sustainably. Individuals would be well advised to keep sustainable farming in mind when searching for agriculture investment opportunities.
Deploying your assets in certain types of investments (such as with farmers that prioritize sustainability) can reflect how you want the world to be just as much as it indicates your focus on profits from a recession-proof industry whose products we all rely on.
If you have any questions about agricultural investing opportunities, please contact us today.
You can also explore sustainable farmland investments here.
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