Investing in farming is on the up and you can invest without getting your hands dirty if you don’t want to! It’s always beneficial to diversify your
Own land and farm
If you have a passion for farming you may decide that owning the land and farming it yourself is for you. This is a very time-consuming way of investing but if it is a personal passion then you should explore this route. It’s a unique prospect to obtain the financial benefits of farming and looking after animals.
If you’re just starting out, then investing in smaller land which generally the larger farming businesses would avoid you’ll find you’ll purchase it for a great price, particularly if the land is exhausted. You can turn the land around using environmentally friendly practices.
Own land and rent to a farmer
Investing in land and renting to a farmer is a great way to be involved in agri-business without getting your hands dirty. Many farmers rent their land meaning you’re in a great position if you chose to do so. It’s a more hands-off way to invest in the industry, further diversifying your portfolio. Essentially, the tenant will pay the mortgage for you through the cost of rent via a long-term lease making this a low-risk business decision. In the long term, your land will make money, making your investment worthwhile.
Buying stocks in agricultural companies
Buying stocks in agricultural companies such as Wynnstay PLC or Countrywide Farmers PLC allows exposure to the agricultural industry without inheriting the risks of farming, from losing livestock, crops, or damage to buildings or equipment. You may have to weather the storm of dips in the stock market due to economic factors but ultimately if you can ride the storm through you will reap the benefit of a long-term share within an agri-business.
It’s worth noting that purchasing shares in a company or organisation isn’t a short-term fix, it’s a long-term commitment that will see your money grow over time if you can hold in there. You can purchase stock in a PLC for farming industries, distribution, biotech, seeds, equipment, packing, fertilizer, and so on.
Buying stocks in agricultural ETF’s
Buying stocks in agricultural ETF’s offers a way for you to invest within the industry on commodities, for example, crops and other offerings that will be sold in the future, gaining a more diversified portfolio in a hands-off approach. By investing in an ETF, this removes the need for huge understanding in the industry. Your fund manager will hand select certain commodities for you to invest in, which is an easy approach to investing all together. If time isn’t on your side, agricultural ETF’s are worth considering to ensure you’re investing within an industry you’d love to be a part of without being a time consuming affair. Additionally, ETF’s are considered a more low risk investment, which is protecting your finances in the long term.