Benefits of Investing in Sustainable Agriculture

There are many reasons why investing in sustainable agriculture is a smart move and there has never been a better time to explore investment opportunities.

The Rising Value of Farmland

USDA’s Land Value Report shows record increases in land costs. The average U.S. farm real estate value increased by 12% over 2021 and cropland and pastureland values increased by 14% and 11.5%. The average value of all land has increased and is now $3,800 per acre. So is investing in sustainable agriculture a good investment? Well, the rising interest in farmland speaks for itself and shows just how lucrative investing in farmland can be for investors.

Food Demand

Consumers have an increased desire to eat organic produce and are aware of the impact their food choices have on the environment. Naturally, there is now a growing demand for regenerative farming and ethical food options.

The Food and Agriculture Organization (FAO) predicts that by 2050 we will need to produce 60% more food to feed a world population of 9.3 billion. Combine this with the higher demand for certain food types, and it’s clear to see how you can capitalize on the growing demand.

Diversifying Your Portfolio

A diversified portfolio with a variety of market assets helps to maximize upside and mitigate risk. The main appeal of diversification is the fact that an individual investment cannot hurt you too much because it is not linked to the other investments. If one asset value is falling, the other assets will be rising or remaining steady.

There are different ways to go about making an investment such as:

● Sustainable agriculture investment funds — allow different investors to pool resources to increase investment options

● Sustainable agriculture venture capital — support entrepreneurs by nurturing an idea and investing in new technology

● Sustainable farming stocks — such as digital agriculture focusing on tools that report on specialized farm information

Tax Exemptions

Schemes such as the Qualified Business Income Deduction (QBI) allow you to deduct up to 20% of your qualified business income. It’s advantageous to check the eligibility criteria for tax reliefs such as property tax relief, and property tax exemptions for new or reconstructed agricultural structures.

Overall, investing in sustainable agriculture provides a range of benefits that contribute to a more sustainable and resilient food system. Farmland offers both short-term and long-term opportunities for creating wealth.

The sector needs investment and the conditions are right, so you may be wondering, “how can I invest in sustainable agriculture?” Explore investment opportunities today at NetGreen.com.