Topic: 2025 Invest into the Agricultural sector (Read 127 times)

The agricultural sector varies from country to country. Production costs and the extent of government support are very important here. For example, many people and organizations engaged in small and medium-scale agriculture here complain about the situation because there is neither sufficient government support nor low production costs. Diesel is very expensive, there is no subsidy. Labor wages to collect the product from the field are expensive. Transportation costs are expensive. The fees to sell it at the market are expensive.
If you are exporting, the conditions of the country you are working in also affect this. Recently many agricultural products have been sent back to the country because they don't meet the necessary conditions at the export destination. Some products have even been found to contain harmful substances. These products are sold in the domestic market and have a negative impact on public health. The agricultural sector is not what it looks like from the outside.

Anyone that does even a little bit of reading will know that the agricultural sector is on the lower end of profitability when it comes to business. Farmers will often inherit a lot but be asset rich and cash poor. They are beholden to the price that big stores set and those big stores will haggle down their prices hard. The machinery in use to farm efficiently is often very expensive and locked down by certain manufacturers. There are much more profitable industries to invest in which often add value to the base ingredients that the agricultural sector product. Cocoa is a commodity and gets traded like wheat or oil, you're not investing in the agricultural industry by dealing in it.

Agriculture the drive of the economy when properly invested and and managed. Returns on investment in agriculture these days doubles it's amount if not even triple. Some Products such as cucumber or even sweet potatoes that most farmers give less importance in terms of production due to their low prices in the market are now of high demand both for farmers and in the market. Take for instance a bag of cucumber that was sold for as low as 2,000 at the beginning of 2024 is currently sold for as much as 20,000 now. Though the risks and uncertainties are there but returns on investment in agriculture is worth it.  

Actually, it also depends on the area where you live, if the land is fertile, investing in agriculture will be successful. It's like in my country too which has fertile land, any plant can grow well. So agriculture does have promising potential for the future, especially in my place of residence because it has abundant natural resources so investing in agriculture is still considered promising for the next few years. Even in my country, the agricultural sector is one of the dominant and important sectors in the economy.

I can say this because in my place of residence many people become rich because they focus on cocoa and coffee farming and coincidentally in the area where I live is the center of cocoa and coffee plantations. So it can be said that the average income of the people in the area where I live comes from plantations, because for them farming is not just about planting seeds but must be able to blend with nature and this allows people to rise with their independence. So the prospect of investing in agriculture is indeed good for the future, especially since cocoa is a long-term plant.

Agribusiness is a lucrative sector. But don't be deceived that it's all a bed of roses. Besides acquiring the necessary skills to start and run a farm it has some high level risks. An outbreak of disease can make an agribusiness go bankrupt.  Some small scale farmers might not be able to afford insurance policy which will make them lose all in case of emergencies.

Agriculture business can also face setbacks if the government fails to make policies that will protect it from foreign competitors. When the price of imported agricultural products is cheaper than local producers, they will end up making great losses.

The example that you gave that cocoa has made more profit than Bitcoin is valid. But have you considered how long cocoa farmers have suffered from the drastic price drop? Many cocoa farms in my country were abandoned because cocoa farming became unprofitable. Only the patient cocoa farmers are benefiting from this price increase.

Cannot run smoothly if it focuses on investment in the agricultural sector. I will call it that investment in the agricultural sector has the potential to experience congestion due to weather that can be a nuisance.
Not all countries of the weather are the same but I think if I in 2025 prioritize investment in the sector, then I will get more losses than returns.
Cocoa can have an impact if the weather is not good.

I can don’t disagree with you because agricultural investment been profitable is dependent on your region, from my place I can actually tell you it is a profitable sector or investment if you actually grow the foods you’re self and actually grow the right foods. One major thing that makes most people not to actually make the most Profits from agriculture is the fact that they grow or cultivate what others cultivate and as we all know the large the supply the less the demand works for it. So for profit it is best to grow what others do not mainly cultivate but is needed at your place.

Just as you have said the trick to maximization of its profits is mechanized farming which we all know incurs expenses but it definitely yields returns and profits. Example od a mechanized irrigational farming this has been a long shot at maximization of profits in my region.

One bad narrative that most people do get though about agriculture investment is hoarding the produce to sell at a later time when it is costlier, this doesn’t works all the time most especially a region where there is government control on prices and also the funds sometimes spent on its storage is another factor to reduce the profits, overall it is a good business for one who understands it and is fully involved in it themselves

Many believe that it's the best thing to do only what's profitable and leave agriculture sector for poor countries and get a cheap food from them but I don't agree with this idea. I believe that food security index is one of the most important index for every country but it doesn't mean that agriculture is a profitable sector. No, it's not profitable unless you own tractor, big lands and multiple other equipment that agriculture needs. Agriculture is the basic thing for us to survive, so, the competition in this business is extremely high and for the majority of people, it can't be a profitable business but I believe that it's the government's duty to help the development of local agriculture, even if it's not a profitable because increased food safety is worth a few money that will be spend on subsidization.

P.S. franky1 gave you a good explanation and advice about the investment, keep that in mind.

the agricultural sector is still a good sector for people to invest in, but each country has different types of crops, for example in my country here people invest the most in palm oil plants, because the oil produced by palm oil can be used for various purposes and the government here plans to convert the oil into fuel and for export abroad, so it is still good to invest in palm oil. while if you invest in rice, you could lose your money because here the farmers are not very prosperous and the price of rice is still regulated by the government, so the profit margin can be very thin.

so always see how the potential of a type of crop and understand the risk of investing in that country because here investors are still dealing with uncertain prices and brokers/big players who can manipulate prices.

Investing more into agriculture will be a great growth and development to my country Nigeria precisely, where feeding has been a major problem to the citizens because of high cost of food stock. Going back to farming (agriculture) is the only remedy that can bring us out of the poverty, hunger, starvation we are going through in Nigeria,
So I hug the youth, mother, father and who it might concern to go back to the system of farming thus, the only possible way to overcome 2025 hunger.

I somewhat agree with your general idea that in the near future agricultural sector could be a good place for investment. My logic is that because of the way global tensions are growing and the "protectionism" thing that is trending in various countries and how the global supply chain will be increasingly disrupted; we can see countries moving toward trying to secure their food security to avoid food crisis (like what happened over the past couple of years).
That means that sector can grow.

But at the same time, it comes with certain risks. Look at Europe for example. As they face more economic crisis and the governments run out of money (specially since Trump will force them to spend more money on US regime's proxy war with Russia) they'll face more budget deficits and the first thing they'll do is cut the budget from various sectors and farmers are the first to suffer. That disrupts the agricultural market and make it unpredictable and risky. There is a lot of profit in that chaos but chaos is coming with risks.

The cocoa example is also an unfair one because that is a special case caused by the hurricane, the El Niño thing. The price shooting up is due to shortage which is not a normal thing that can happen and is definitely not easy to predict.

certain crops are controlled by international markets(manipulations)
so not only do you have to fight international market speculation
so not only do you have to fight the weather and disease and also land costs and fertiliser,
you also have to fight the seed costs(controlled internationally)

so if you are going to start a farm. you better buy low cost naturally already fertile land, cheap harvesting equipment, and especially have a non patented genome of seed that you can grow crops from and then use the seed from those crops for the next season

its also worth noting although crops are sold to the markets at start of delivery.. the futures markets make profit during the journey time before it reaches destination ports. so dont expect to get the prices that you see on the international markets. you will get a price way below market price

Yes, investing in agriculture can be a very good idea. But you have to be diligent, you will be more profitable if you can work on your own. Agricultural work is of different types, some cultivate crops and some cultivate vegetables. Crop farmers cannot make much profit because of the cost of fertilizers and pesticides and so on. According to my region corn has become popular now, good profit can be made from corn. However, where I live many people have made good profits growing vegetables. My sister's son-in-law grows different types of vegetables, he is making good profit. Vegetables are more profitable than crops. However, there are risks in agriculture too, if not taken care of regularly, vegetables will not grow well, and various types of insects damage crops, so caution must be exercised in all aspects.

That's right. If you have the money and you can venture into different businesses, you can indeed go into agriculture as well. Although agriculture is a risky venture, I have wealthy friends who are primarily focused on agriculture. Of course, they have vast lands and the wherewithal to finance huge farms. And they can absorb losses as well.

However, at least in my country, if you are a lowly farmer, agriculture might not be the best for you. The prices of many agricultural products fluctuate all the time. You can sell with profit today but if you do it tomorrow you'll be losing instead. That's how unstable the prices are. Sometimes, it's either you decide to make a premature harvest or not to harvest at all. Plus there are so many factors affecting agriculture like weather changes, pests, diseases, supply and demand, prices of fertilizer and the like, and so on.

Cacao farming, for example, used to be lucrative. Then came a time when cacao trees were not maintained anymore, even cut down, because the prices of cacao beans were too low. And then there's the comeback. The demand rises but the supply can't catch up, so there's the rise in price. Cacao farms are now revived. New ones are opened. A few years from now, the supply will once again flood the market.

agriculture is not always a guaranteed multiplier

the reason cocoa hit high prices is due to bad weather and disease
dont expect that every year nor predictable cycles

usually cocoa productions sit around 5m tonnes but due to weather and disease predictions of a 0.5m shortfall of production, leading to high demand which caused the futures market to rage bid for future supply

dont expect such events regularly
also dont get stuck holding cocoa stocks when contracts complete whereby if you are not a cocoa processor you end up having to find a buyer
(much like how idiots that could not process oil overbid and got stuck with oil in 2020 causing the market to then tank to ZERO just trying to find buyers)
if your business outside of investing is not in selling cocoa products, dont risk investing in cocoa, alot can go wrong

plus your not suppose to bid on such if you have no intention on receiving the goods on contract completion(not illegal just frowned upon)

2025 is here and one sector that people has been ignoring is the Agricultural sector but critically looking at the agricultural sector it has been under utilized as every one is actually looking elsewhere but this is one sector that actually has a lot of great potential

Infact just last week there was a report that cocoa an agricultural product out perform Bitcoin and a lot of people didn't believe it or some are even surprised about the news but that is the fact as agriculture is key to any nation that is serious about development and economic growth as it's only a people who has eaten that can be talking about development

So this year I want to encourage people to make appropriate investment in the Agricultural sector as it has percentage on return on investment