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Should you invest in agriculture?

UK biofuel investment

Agriculture is becoming more and more popular for investors now that the financial market has begun to improve. While people continue to invest in businesses and property, agriculture is another area you may wish to consider putting your investment. Before you agree to any investments, it’s important to do your research and establish if it’s the right move for your portfolio, and the following information could help you decide if this is the right investment opportunity for you.

Growing interest both at home and overseas

Agricultural investment is becoming more and more popular both at home and overseas, with particular interest from the Chinese investment markets. This is because of the demands of a growing population and a growing interest in eating healthier, local produce and less on convenience and processed foods. While there are some concerns about the impact that Brexit will have on farming and food manufacturing in the UK, the fact that this isn’t deterring investors could be a sign that it’s the right move. Growth rates are continuing, and it would seem that now is the time to get in.

Deciding an area to invest in

There are many diverse areas of agriculture you could invest in, including investing in farmland and farm property or even just investing in more niche areas of agriculture. Storage and waste management are key issues for the industry, and you may find that your efforts are better spent investing in areas such as fertilizer storage or transport solutions. If you have expertise within a certain area, you should use it and find the right area of agriculture that appeals to those strengths.

Understanding the risks

As with any investment, agriculture presents its own risks, and you should discuss these with your financial adviser with experience in agricultural investment to identify any potential risks or trends in the current market. A specialist investment company can help you to identify where the best opportunities are and make sure you’re aware of the latest farming investment opportunities here and overseas.

Watch from the sidelines

If you’re still undecided about whether or not to invest in agriculture, you could park it for a period of six months or more and see how things develop. This may not be the worst suggestion as key decisions on Brexit could have an impact on farming that will affect investments, either in a positive or negative way. In that time, you may decide that another form of investment is more appropriate for you or another opportunity will present itself that is more attractive.

With any kind of investment, there’s a risk, but by asking the right questions and doing your research, you can mitigate against them for the most beneficial investment for your circumstances. The Financial Times and The Guardian’s finance pages are a great place to keep up to date on the latest agricultural trends and will help you work out when the best time to invest is – often it’s a waiting game, but the payoff will be worth it if you time it right.

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