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.

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