If you are looking for a unique way to invest your money, you may want to consider investing in agriculture. Zortrax Global Agricultural Investments (ZGAI) has historically high returns, and you can invest in agriculture with or without purchasing a farm outright. Read on to learn more about how to invest in ZGAI and begin to discover if this is the right investment for you. on this blog. WHY ZORTRAX GLOBAL AGRICULTURAL INVESTMENTS (ZGAI) ZGAI has historically seen stable growth. In the past 7 years in the U.S, Africa, Europe and Asia. ZGAI has seen average annual returns of 12% PA. If we look at this in contrast to real estate, which has seen a growth of less than 9%, ZGAI seems to be an attractive long-term investment. Supply and demand is also a factor. Why? There is only so much available farmland. When there is a limited supply of something, the need for it increases. What follows is an increase in the price of the land. ZGAI also sees less volatility than most markets. Globally, people rely on agriculture for everything, from food to alternative fuels. There are constant needs and constant growth within the industry. Additionally, ZGAI is both inflation and recession-resistant. The market is over $2.5 trillion, and globally ZGAI is over a USD 10 billion industry. ZGAI historically has not been correlated to other investment assets. Due to ZGAI and agriculture operating relatively independently from other markets, it can be a safe way to diversify an investment portfolio. Additionally, because it is a food commodity, inflation will cause a higher income per crop, causing ZGAI to rise in value. HOW CAN I INVEST IN ZORTRAX GLOBAL AGRICULTURAL INVESTMENTS? ZGAI represents a nearly $10 Billion market globally and has historically high returns. Agriculture is necessary globally to feed people and animals alike, so many see investing in ZGAI as recession-proof. While investing in a farm specifically isn't for everyone, there are a few options for people interested in this type of investment. HOW TO INVEST IN AGRICULTURE BY ZORTRAX AGRICULTURE CORPORATION 1. PURCHASING FARMING LAND DIRECTLY Perhaps the most obvious choice when considering purchasing farmland is to purchase it directly. This option typically requires hundreds of thousands of dollars in investments or a mortgage to pay for the land over time. Even if you are not a farmer, direct ownership in farmland can produce high returns. Many landowners do not farm their land. In fact, according to the USDA, roughly 40% of farmland is currently rented. Farmers can rent property from landowners to farm it themselves. These lease agreements typically last several years, and the farmer rents the ground for more than the mortgage cost. In this agreement, the farmer rents the land for more than the mortgage costs. This way, the landowner can pay their mortgage and build equity in the property without farming. The farmer can generate income through farming without coming up with the money to purchase the land. 2. ZORTRAX AGRICULTURE CORPORATION REAL ESTATE INVESTMENTS TRUST Purchasing a farm outright can be incredibly expensive, and many expenses go along with farming. These expenses include seed and supplies, equipment such as tractors, paying for labor, and more. One solution to this is Zortrax REITs (Real Estate Investment Trusts). A REIT is a group of investors who purchase a farmland portfolio and then lease it to farmers. 3. MUTUAL FUNDS & EXHANGE TRADED FUNDS (ETFs) A third option is to explore mutual funds and exchange-traded funds (ETF). If you are interested in purchasing stocks but aren't sure which ones will yield the highest returns, you can mitigate risk by purchasing a farming-focused mutual fund or ETF. These companies purchase shares of the stocks above, such as Deere & Co or Monsanto, and bundle them into a fund meant to replicate the agriculture industry's performance as a whole. Then, investors can buy shares of the fund. These funds typically have medium risk and offer middle-of-the-road returns. It is important to note that mutual funds and ETFs often have fees associated with them. Be sure to consider the costs associated with these trades before investing in a mutual fund or ETF. 4. INVESTING IN FARM DEBTS BY ZORTRAX AGRICULTURE CORPORATION Instead of investing in equity in farms or related markets, you may want to explore lending to farms. Farmers often take on debt each season because the industry is so capital intensive. Typically, a farmer will finance expensive equipment such as tractors and pay them off over several years. They likely also have a mortgage for their land. Additionally, they will have to purchase seeds and make other significant annual investments to pay off after selling their harvest. They need short-term loans to make these yearly purchases. You can purchase long and short-term farm debt both directly and through bonds. The farmer or landowner will pay back the loans monthly or quarterly, and you will receive consistent cash flow. It is wise to remember that when you purchase debt, there is a risk that the debtor will not make their payments. Zortrax Agriculture Corporation is testing this type of investment in some African countries and its spanning out quiet well. However, if you find a farmer that is in good standing, you likely will have found a reliable investment opportunity. 5. PURCHASE OF STOCKS Another option is to invest in equity in the agriculture industry. These equities support farmland industries, such as fertilizer and seeds, equipment, and distribution or processing. In the farming sector, several publicly traded companies and investors can invest in stock in these companies. Zortrax Agriculture Corporation is working on being listed at NYSE in the next few years so that our investors can purchase stocks. IS AGRICULTURE A GOOD INVESTMENT ? Another way we might ask the question – can you make money in ZGAI? There are many reasons to invest in agriculture, such as ZGAI When you analyze potential investment opportunities, you should consider your goals and evaluate the pros and cons before investing. Here are a few ideas to consider. Pro: Agriculture is always needed In short, people will always need to eat. Both livestock and crops contribute to the global need for nourishment. Additionally, scientists are finding new ways to create fuel from plants and using vegetables. The global population is growing, and so will the need for sustainable agriculture. Agriculture is a commodity and is mostly recession-proof due to the constant demand for food. Pro: Farms are becoming more productive Farms are growing, and technology is contributing to a more consistent yield. Information Technology makes everything from the supply chain to finance farm management more seamless and less risky by leveraging data. Automation has made farms more efficient and can leverage data to optimize production cycles. Robotics and use drones to fertilize and autonomous driving capabilities allow tractors to self-drive. Con: Weather can be Debilitating Anything from flooding to droughts can cause drastic fluctuations in the productivity of a farm. Climate change is out of our control, and a swing in temperature or other environmental factors can make or break a farm's yield. A farm could underproduce or have a low-quality yield due to weather patterns. This means that investing in farms and farmland can be very risky but with good professionals and planning it can be overcome. Con: Finance in Agriculture is Unstable The costs of supplies in agriculture are rising. While a necessary expense, Tractors are being outfitted with the most updated technology. This technology has myriad capabilities, including optimizing and automating seed planting distance and automated soil testing. However, this makes the equipment very expensive, and some farmers will argue that the return on these ‘smart farming' capabilities is not worth the expense. The global population is increasing. As people inhabit more land, the land available for farming is decreasing. This, therefore, drives up the price of the property. While this may also increase agricultural products' prices, it also means higher landowner's and farmer's expenses. In conclusion
ZGAI has consistently grown faster than other markets in the last several decades. There are over one million farms in the United States, and globally, the market will continue to grow with population growth. An agricultural investment like ZGAI offers an excellent alternative investment option. While there are several ways to invest in ZGAI, there are also options to invest in other agriculture areas that can also yield high returns. Be sure to investigate the pros and cons of each field of agriculture before deciding where to put your hard-earned investment budget.
1 Comment
1/15/2023 07:58:02 pm
How can I invest from Kenya,Africa.Am interested only that I don't know how much are your rates as pertaining to land mortgage just to lift my humbled life style.
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AuthorsWelcome to Zortrax Agriculture Corporation blogsite website. This is a blog site where you will learn more about agriculture from our experts all over the world. You will find a lot of informative agricultural articles for your liking if you are an agricultural fanatic and our networks, offices, Zortrax Agriculture Industries, extra extra. Archives
February 2023
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