Thursday, September 30, 2010

The Importance of Agriculture in a Technologically Advanced Society



Every place has its own prime agricultural products such as cereals, fruits, vegetables and industrial crops. The sustainability of these products can be achieved through the technologically advanced interventions such as irrigation facilities, farm mechanization, planting of crop hybrid varieties, post harvest facilities, integrated pest management, biological control of pest and diseases, organic farming through the use of trichoderma compost activator and vermiculture in the production of organic fertilizers; and the construction of farm to market roads for the accessibility of farm products to the market outlets.

The construction of irrigation facilities can increase the area of irrigated ricelands; thereby, increasing the rice production and generate more profits to the rice farmers. Furthermore, this will generate more jobs to the farmers in the localities. In upland areas where the crop production are vegetables, ornamentals and fruit trees, the type of irrigation that can be used are open source pump irrigation, sprinkler or drip pressurized.

Farm mechanization can be achieved through the procurement of four-wheel farm tractors for the land preparation in upland areas; and hand tractors or mudboat power tillers in the lowland rice areas. Post harvest facilities are the rice treshers, rice harvesters, rice mills, flat-bed dryers and drying pavements for rice; and corn shellers/ corn mills for corn products.

The use of hybrid varieties of crops can increase the production even in the same area; and generate more employment, since more harvest needs more workers especially during harvesting and post harvest activities. More harvest means more income to the farming households.

To trace the latest information in agricultural scenario and agro industry, agricultural, products, reserves, Indian importers, Trade Leads, business directories, catalogs and product reviews, www.made-from-india.com is the precise Indian Business to Business (B2B) portal. It maintains a large database of Indian Agricultural manufactures suppliers, India Agricultural products, Indian Farm Products, suppliers & producers of agricultural products including fertilizers, pesticides, animal feeds & extracts, agricultural product stocks, vegetable oil, Indian Agriculture information online news, irrigation equipment, machines & appliances, fruits & juices, edible products etc.

Tuesday, September 21, 2010

The Importance of Agriculture



Agriculture usually plays a vital role in the economy of every nation that exists. Not only for the reason that it tends to feed the entire population of a country but also in the respect that agriculture correlates and interacts with all the related industries of that country. A country is usually considered to be a social and politically stable nation if it possesses a very stable agricultural basis.

A stable agricultural industry ensures a country of food security. Food security is considered to be one of the primary requirements of any nation. No nation can effectively grow with a stable agricultural base while harboring a nation of "hungry people", as these hungry people can do nothing what-so-ever towards helping develop their country. Food security prevents starvation which has traditionally been considered one of the largest problems being experienced by the small developing nations. Most countries depend upon agricultural products and related industries for their major source of income. Even the newly developing countries will find that they depend upon and can benefit greatly from their agricultural industry.

Aside from the crops and animals that are produced by the farmers who make up a country agricultural sector the agricultural field represents the main source of employment within most countries. The larger farms usually find it necessary to hire additional hands in which to successfully cultivate the lands and to take care of the related farm animals. Most of these large farms have processing plants located in nearby facilities for finalizing their agricultural products and developing the by-products. It goes without saying that these sub-industries employ considerable man-power within their operations. Most of the modern farms and agriculture-related industries make good use of today's modern equipment as well as the principles of science and technology.

The use of technologies in farming is determines by the competence of the various farmers towards coping with these advancements relating to the technologies. The country's farmers who can utilize the modern technologies involved with farming can assure a good production of their products which benefits their country as a whole. Modern farming technologies would be useless if the farmers are not competent enough to use any of the technology that they have available to them.

Most of the older industrialized cites have begun their growth primarily through the development of agriculture. These cities have done well on an agriculture basis before they fully begun to embrace the industrialization process. Most of the principles currently in use within our modern businesses have their roots stemming from the principles of agriculture. Bulk manufacturing is one of the practices that have been patterned from the seasoned harvesting often found in the area of agricultural practices. This method has saved many ancient cities from destruction during times of plague and drought. During the ancient times the countries harvested crops which were not merely used for immediate consumption but were often harvested and stored for future use. The same thing is practiced within the modern business procedures to ensure its stability.

Agriculture is usually common in rural areas which have the most arable lands, however with the modern technologies involved in farming agricultural activities are totally possible even in the urban areas. These activities can be accomplished to sustain personal or family needs or even for commercial purposes.

To trace the latest information in agricultural scenario and agro industry, agricultural, products, reserves, Indian importers, Trade Leads, business directories, catalogs and product reviews, www.made-from-india.com is the precise Indian Business to Business (B2B) portal. It maintains a large database of Indian Agricultural manufactures suppliers, India Agricultural products, Indian Farm Products, suppliers & producers of agricultural products including fertilizers, pesticides, animal feeds & extracts, agricultural product stocks, vegetable oil, Indian Agriculture information online news, irrigation equipment, machines & appliances, fruits & juices, edible products etc.

Monday, September 20, 2010

Invest in Agriculture - Defining the Risk in Agricultural Commodities



Many investors shy away from agricultural investments because of the misconception that agriculture is a risky venture. However, whether the venture is risky or not really does not lie in the sector, but more on the investor himself. Agricultural investments have its defined risk and benefits. It will indeed be very risky if one were to invest in low quality land. However, the case if very different if we were talking about prime investment grade farmland which provides stable and consistent returns while appreciating the principle.

Investors who do not have a foot in the agricultural commodity market is sorely missing out. I would guess that almost 90% of those reading this has absolutely no idea how the agricultural commodities can benefit them. This is not your fault entirely as most stock brokers and hedge fund managers are always calling for more buys into properties and bonds. Investors often call the agricultural commodity 'risky', but these are the very same folks who buy heavily into funds where they watch their shares go to zero. No commodity has ever gone to zero, and they never will.

Agriculture is the staple of almost every country's economy. By being able to provide the basic necessarily of life - food, agriculture commodity creates a tremendous economic impact. It cannot be denied that the food and farming industry is critical to the balance of trade and employment in every nation. All across the country, it is agricultural farmland that supports the economic base of nation. Let us not forget the impact that China will have on the worlds agricultural economy. The United States has a population of about 280 million, and about 330 million crop acres in production. In similar comparison, China has 1.4 billion people living off 270 million crops acres! The economic boom in China is imminent and just starting.

To trace the latest information in agricultural scenario and agro industry, agricultural, products, reserves, Indian importers, Trade Leads, business directories, catalogs and product reviews, www.made-from-india.com is the precise Indian Business to Business (B2B) portal. It maintains a large database of Indian Agricultural manufactures suppliers, India Agricultural products, Indian Farm Products, suppliers & producers of agricultural products including fertilizers, pesticides, animal feeds & extracts, agricultural product stocks, vegetable oil, Indian Agriculture information online news, irrigation equipment, machines & appliances, fruits & juices, edible products etc.

In recent years, the land and agricultural business has not received the best of press. There are a few selected companies out there which are measured as trustworthy, and all it takes is determination on your part to seek out these companies and to learn about investing in the agricultural commodity. Investing in agriculture can be very lucrative to the informed investor. Therefore, it is highly advisable that you seek and follow the latest news on very exciting sector.

Tuesday, September 7, 2010

Agriculture Investment - Harvesting the Profits From Land



Have you had the smallholding dream? I can tell you that you are not the only one.

Many "hobby farmers" or "lifestylers", - City workers and canny investors, are using their capital to chase the dream of agriculture and buying farmland, and non-farming buyers make up a much larger proportion of sales than ever before.

This has contributed to the recent escalation in the rise of farmland prices, as agricultural land continues to beat both commercial property and the residential market.

During the past six months arable land has rocketed in value by 8%, and by 13% year to date (July 2010) according the Knight Frank Farmland Index, with most experts believing prices will continue to rise for at least seven years.

The price of agricultural land rose by 19.7% for the twelve months to July, and continued interest from institutional funds looking to invest in agriculture by purchasing vast tracts of farmland and leasing it to commercial farmers is adding to the upward pressure.

Many savvy investors are now looking to swap faltering residential and commercial buy to let investments, and invest in a piece of good quality agricultural land instead. Some have been frightened off from the stock market due to the ongoing volatility and lack of visibility in the market and are now also investing in agriculture for a more stable income and positive growth.

These high-net-worth investors pursuing the farmland dream are not alone in their hunt to acquire and invest in farmland. Values are also feeling upward pressure as food prices increase at a time when there is a sharp decrease in the amount of agricultural land for sale.

Commodity prices for wheat and other cereals are at a 40 year low but peaked in 2008. According to leading finance broker Savills Private Finance, the actual acreage being advertised publicly has fallen from around 600,000 acres in the 1960s down to around 125,000 acres today.

There is still a lack of supply, although we source our assets from land owning farmers that want to become tenant farmers because mortgage payments are too high, so we get access to farmland that is not on the open market.

There are of course other options for investors looking to profit from the boom.

There are a number of agricultural investment funds to consider for those wishing to invest in farmland and still qualify for inheritance tax (IHT) relief.

Generally speaking, minimum investment levels are £20,000 with various modes of investment and offer the option to invest through a self-invested personal pension or offshore bond as well as with liquid capital.

As with any AIM stock, only investors choosing to hold the property for two years or more will qualify for the IHT relief.

In Europe, arable land is already worth twice that of land in Britain in places like Denmark and Ireland. Investors from these countries are now looking to the UK to cash in on the boom.

When compared to our closest agricultural rivals such as Ireland, UK arable land is still very cheap and has the margin to expand in value by 100%, I think personally that we are in for a period of prolonged growth, imagine if agricultural land values doubled by 2020, we would then be able to say that they are only priced as Irish farmland was ten years ago.

How is farmland treated by the Tax Man?

Land that is actively farmed could qualify for 100% relief from death duty, which means that there would be no IHT liability.

If the land is being farmed by the owner, you would qualify for 100% relief on the land after 24 months. Equally, the same rule applies if you have a tenant farmer do the work, as long as you have a profit share arrangement. If you lease the land to a commercial farmer, then you would qualify after seven years.

To trace the latest information in agricultural scenario and agriculture industry, agricultural, products, reserves, Indian importers, Trade Leads, business directories, catalogs and product reviews, www.made-from-india.com is the precise Indian Business to Business (B2B) portal. It maintains a large database of Indian Agricultural manufactures suppliers, India Agricultural products, Indian Farm Products, suppliers & producers of agricultural products including fertilizers, pesticides, animal feeds & extracts, agricultural product stocks, vegetable oil, Indian Agriculture information online news, irrigation equipment, machines & appliances, fruits & juices, edible products etc.

David Garner is Manageing Partner at DGC Business Consulting Ltd, a boutique investment consultancy specialising in agriculture investment and property investment.