Private Sector Financing

If you’re holding cash, your purchasing power is dropping at a faster rate. To protect yourself from this loss, you can invest in inflation-proof companies, the ones that can pass along their increasing costs to customers. And when it comes to food, people need to eat… no matter what the rest of the market is doing. The US’s incoming administration has an historic opportunity to extend America’s global leadership by promoting the economic transformations underway in Africa. An effective US strategy would be based on the fact that Africa’s development still greatly depends on the performance of its agri-food systems. Insights into how investments made possible by the GAFSP Private Sector Window help change lives of farmers around the world.

Calavo Growers is one of the smaller players on this list. It comes with a little more risk, but the same is true for upside potential. And since avocados have seen a spike in demand, this has helped the company grow. They’re leaders in agricultural machines and also provide for other industries. For example, there’s design overlap with construction machinery.

And they can continue to push higher costs along to their customers. This makes them some of the best agriculture stocks around. Archer-Daniels-Midland is one of the largest agriculture companies in the world. It sources, transports, processes and distributes many products.

Scotts Miracle-Gro has also been expanding into hydroponics and owns Hawthorne Gardening Company. This business serves growers of all sizes, from commercial cultivators to home hobbyists. And this makes it a unique agriculture stock to consider buying. In the 1800s, Scotts started as a premium U.S. seed company. It’s had a long history and has transitioned into more of a lawn and garden company. Today, it provides a wide range of gardening and pest control products.

Investing In Nutrition

Buying into a basket of these companies might help protect you against inflation. Another benefit to Gladstone’s structure is its requirement to pay dividends. And a few of the other agriculture stocks on this list pay dividends.

These bring vital practical information to agricultural producers, small business owners, consumers, families and young people. This rich history and know-how means the US can provide much needed leadership and expertise to support institutional capacity building in Africa. Many more Africans have professional job expertise related to agri-food systems than they did 25 years ago.

This should include African universities, agricultural training colleges, vocational schools, crop research organisations, extension systems and policy analysis institutes. International private companies, universities and NGOs have important but increasingly redefined roles that put African institutions in the lead. This means supporting institutions that create the next generation of African educators, farm extension workers, research scientists, entrepreneurs and policy makers. These people will define the pace of private investment and agricultural transformation in African countries. The US has one of the world’s most dynamic and productive agricultural systems. This is greatly indebted to the US land-grant university system, the US Cooperative Extension Service, and a host of other public institutions.

Promoting Professional And Sustainable Cocoa Farming

Write an article and join a growing community of more than 145,600 academics and researchers from 4,363 institutions. Once enacted, the proposals made here will take time to generate their full impact. Michigan State University provides funding as a founding partner of The Conversation US.

Development models premised on 1980s conditions no longer fit 2017 realities. US development organisations can be especially effective if they understand that today there is much greater local expertise and awareness. These expand private investment and employment opportunities in African agri-food systems and in the rest of the economy. Rising incomes in Africa also promote US export interests. A vibrant agricultural sector will hasten Africa’s transition to a more prosperous, diversified and stable region. The agriculture stocks above cover many areas of the ag industry.

And Caterpillar is more of a prominent brand in that industry. On top of that, more people around the world are Investing in the agricultural sector moving up to the middle class. They have higher discretionary income and can buy more costly food products.

How do I invest in the agricultural sector

It’s a farmland company that has a growing portfolio of properties. You’ll find many of them in California and Florida, but it also has properties in 10 other states. The world’s population is up roughly 300% in the last century.

If you’re looking for even better investing opportunities, consider signing up for Liberty Through Wealth. It’s a free e-letter that’s packed with investing tips and tricks. Whether you’re https://xcritical.com/ a beginner or already advanced, there’s something for everyone. These companies mine potash and provide other crop inputs. They’re some of the largest fertilizer companies in the world.

Our Projects

Farming remains the primary source of employment for 65% of Africa’s population. Putting more money in the hands of 500 million Africans who rely on farming for their livelihoods will have a decisive influence on the pace of economic growth. John Deere and Caterpillar continue to develop autonomous machines. This saves time, and they’re also collecting more data, which helps farmers make better decisions and can improve crop yields.

However, it’s a really small company compared with others on this list. If you’re looking for a riskier position to play agriculture stocks, this could be it. US exports of agricultural products to sub-Saharan Africa totalled $2.6 billion in 2013. By 2050, sub-Saharan Africa will have 2.1 billion people – 22% of the world’s population compared to 12% today. Rapidly rising populations and incomes will increase the demand for a safe, affordable and sustainable global food supply. An effective US government approach will need to recognise the dramatic changes in the African landscape over the past few decades with respect to partnerships.

The company converts corn into bioproducts, starches and sweeteners. Instead of providing the technologies, services and answers themselves they should help African organisations to do so. Quite simply, because investing in Africa’s economic growth is in America’s national interest.

  • This demand and the growing population are powerful trends to profit on.
  • This makes them some of the best agriculture stocks around.
  • Our advisory projects—which help companies improve their productivity and standards—include 88 projects across 33 countries for over $44 million.
  • You can find the full policy paper on “Enhancing US efforts to develop sustainable agri-food systems in Africa” here.
  • For example, there’s design overlap with construction machinery.

Despite strong economic growth and falling poverty levels, Rwanda faces significant… Ceres Farms LLC is a co-mingled investment Fund launched in 2007 to identify, acquire and manage productive agricultural land. Brian Kehm double majored in finance and accounting at Iowa State University. After graduating, he went to work for a cryptocurrency company in Beijing. Upon returning to the U.S., he started working with financial publishers and also passed the CFA exams. When Brian isn’t researching and sharing ideas online, you can usually find him rock climbing or exploring the great outdoors.

Private Sector Financing

For example, meat consumption in China has soared to new highs. An effective US strategy toward African agricultural development will engage more African professionals than in the past. It is increasingly recognised that most African agricultural exports do not compete with US farm and agribusiness interests.

The goal is to help agriculture producers improve productivity. You can find the full policy paper on “Enhancing US efforts to develop sustainable agri-food systems in Africa” here. US development organisations need to understand that today there is considerably greater local expertise.

How do I invest in the agricultural sector

This demand and the growing population are powerful trends to profit on. On the ag side, you’ll find multitask machines that move bales, clean stalls, mix feed and more. There are many choices for loaders, excavators and harvesting equipment.

To date, the Private Sector Window has supported 81 agribusiness investment projects in 27 countries, deploying approximately $440 million of funds. Our advisory projects—which help companies improve their productivity and standards—include 88 projects across 33 countries for over $44 million. These projects have enabled GAFSP to reach over one million smallholder farmers across the world. We know too that it takes more than just finance to achieve sustainable private sector development.

Inflation Pushes Agriculture Stocks Higher

Virtually no country in the world has transformed its economy from an agrarian economy to a modern one without sustained agricultural productivity growth. China Green Agriculture gives direct exposure to China’s market. That’s because more of its population is moving up into the middle class.

Population Growth And Food Demand

Many are educated internationally and possess valuable technical skills. They can operate effectively given superior knowledge of local culture and connections with centres of local power. That means they’re capable of influencing government investments. These are the benefits that would emerge from strong partnerships between African governments, the private sector and millions of African farmers and entrepreneurs. Enlightened US development assistance programmes are required. China Green Agriculture develops different fertilizers and agricultural products.

That’s why advice and technical support are also a critical part of our work as a comprehensive blended finance solutions provider. But conditions have not changed much in at least one important respect. Public agricultural institutions, such as R&D and extension services, play a crucial role in supporting farm productivity growth. Most African agricultural research systems are woefully underfunded.

Rwandas Greenhouses Bring Growth

Asian farmers benefit from the fact that their governments annually spend over eight times more on agriculture on average than African governments. Not surprisingly, the pace of productivity growth in Asia has eclipsed Africa’s. Blended finance is a new tool to crowd in private sector financing that would otherwise not be available to projects with high development impact. One such approach is to blend concessional funds – typically from development partners – alongside commercial funding. The time has arrived for the US to find effective ways to support capacity building.

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