Best of the Week
Most Popular
1. Ray Dalio: This Debt Cycle Will End Soon - John_Mauldin
2.Stock Market Dow Plunge Following Fake US - China Trade War Truce - Nadeem_Walayat
3.UK House Prices 2019 No Deal BrExit 30% Crash Warning! - Nadeem_Walayat
4.What the Oil Short-sellers and OPEC Don’t Know about Peak Shale - Andrew_Butter
5.Stock Market Crashed While the Yield Curve Inverted - Troy_Bombardia
6.More Late-cycle Signs for the Stock Market and What’s Next - Troy_Bombardia
7.US Economy Will Deteriorate Over Next Half Year. What this Means for Stocks - Troy_Bombardia
8.TICK TOCK, Counting Down to the Next Recession - James_Quinn
9.How Theresa May Put Britain on the Path Towards BrExit Civil War - Nadeem_Walayat
10.This Is the End of Trump’s Economic Sugar High - Patrick_Watson
Last 7 days
Gold Price – US$700 Or US$7000? - 16th Jan 19
Commodities Are the Right Story for 2019 - 16th Jan 19
Bitcoin Price Wavers - 15th Jan 19
History Shows That “Disruptor Stocks” Will Make You the Most Money in a Bear Market - 15th Jan 19
What Will the Stock Market Do Around Earnings Season - 15th Jan 19
2018-2019 Pop Goes The Debt Bubble - 15th Jan 19
Are Global Stock Markets About To Rally 10 Percent? - 15th Jan 19
Here's something to make you money in 2019 - 15th Jan 19
Theresa May to Lose by Over 200 Votes as Remain MP's Plot Subverting Brexit - 15th Jan 19
Europe is Burning - 14th Jan 19
S&P 500 Bounces Off 2,600, Downward Reversal? - 14th Jan 19
Gold A Rally or a Bull Market? - 14th Jan 19
Gold Stocks, Dollar and Oil Cycle Moves to Profit from in 2019 - 14th Jan 19
How To Profit From The Death Of Las Vegas - 14th Jan 19
Real Reason for Land Rover Crisis is Poor Quality of Build - 14th Jan 19
Stock Market Looking Toppy! - 13th Jan 19
Liquidity, Money Supply, and Insolvency - 13th Jan 19
Top Ten Trends Lead to Gold Price - 13th Jan 19
Silver: A Long Term Perspective - 13th Jan 19
Trump's Impeachment? Watch the Stock Market - 12th Jan 19
Big Silver Move Foreshadowed as Industrial Panic Looms - 12th Jan 19
Gold GDXJ Upside Bests GDX - 12th Jan 19
Devastating Investment Losses Are Coming: What Is Your Advisor Doing About It? - 12th Jan 19
Things to do Before Choosing the Right Credit Card - 12th Jan 19
Japanese Yen Outlook In 2019 - 11th Jan 19
Yield curve suggests that US Recession is near: Trading Setups - 11th Jan 19
How Unrealistic Return Assumptions Are Ruining Your Stocks Portfolio - 10th Jan 19
What’s Next for the US Dollar, Gold, Stocks & Bonds? - 10th Jan 19
America's New Africa Strategy - 10th Jan 19
Gold Mine Production by Country - 10th Jan 19
Gold, Stocks and the Flattening Yield Curve - 10th Jan 19
Silver Price Trend Forecast Target for 2019 - 10th Jan 19
Silver Price Trend Forecast 2019 - 9th Jan 19
Did Strong December Payrolls Push Gold Prices Up? - 8th Jan 19
How to Spot A Tradable Stock Market Top? - 8th Jan 19
Why 90% of Traders Lose - 8th Jan 19
Breadth is Very Strong While Stocks are Surging. What’s Next for Stocks - 8th Jan 19
Half of Investment-Grade Bonds Are Just One Step from Junk Status - 7th Jan 19
Stocks Rallied Again, Still Just an Upward Correction? - 7th Jan 19
Gold Golden Long-Term Opportunity - 7th Jan 19

Market Oracle FREE Newsletter

Bitcoin Analysis and Trend Forecast 2019

How to Invest in The Farming and Agriculture Industries

Commodities / Agricultural Commodities Aug 31, 2018 - 08:57 AM GMT

By: Dylan_Moran

Commodities

Agriculture is always  a solid choice to invest. People always need to eat no matter the current economic outlook. This is why many people consider agricultural investments to be recession proof. The good news is that you don’t actually have to own a farm to invest in them. Here is a look at how to invest in farms, all without having to actually own one.


1. Farm REITs
Investing in a farming-focused real estate investment trust – REIT – is the closest an investor can get to owning a farm without owning one. They basically allow investors to purchase farmland and lease it out to farmers to use. There are several benefits to this; including offering more diversification over owning just one farm. Investors can put their money into several farms in several areas. They also have more liquidity than owning actual farmland, as it’s possible to quickly sell an REIT on through the stock exchange.

2. Equities
Investors are able to invest their money in publicly-traded companies within the farming sector. Invest your money into crop production, supporting industries such as fertilizer, farm equipment producers, and crop distributors, and actual farming equipment. Instead of putting your money into a company that makes the farming equipment, it may be more prudent to simply buy your own and sell/rent it on to farmers. Farming equipment can be expensive and farmers won’t need it all year-round. Some of them choose to simply rent the equipment when they need it. EquifyAuctions.com gives you the chance to purchase farm equipment and rent it out to farmers that need it for a tidy sum.

3. ETFs
An ETF is an Exchange-Traded-Fund, which is a great way for investors to diversify their investments in agriculture. The VanEck Vectors Agribusiness ETF allows investors to invest in a range of companies that make at least half of their money from agriculture or agriculture related products. There are other such funds as well. Investors should consider the management fees of an ETF and how they perform before choosing one to invest in.

4. Mutual Funds
There are several mutual funds for investing in farming and agriculture. If this idea sounds appealing to you, the first thing to do is determine whether or not the funds invest in agriculture commodities or firms related to agriculture. Some mutual funds also invest in things outside of agriculture, so be sure to check whether or not the mutual fund is a pure farming and agriculture investment not.

5. Commodities
Speculative investors might want to invest directly in commodities, with the hope of taking advantage of price changes later down the line. There are plenty of commodities to invest in when it comes to agriculture. This includes investing in corn, livestock, coffee, grains, sugar, and more. Take a look around and see what you can find.

Summary
The bottom line is that there is a lot of choice out there for investors interesting in farming and agriculture, most of which don’t require one to actually purchase their own farm. They include purchasing farmland and leasing it out, investing in businesses related to farming, and buying farming equipment and renting it out to farmers.

By Dylan M.

© 2018 Copyright Dylan M. - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules