Invest Money: Guide To Investing For Beginners

The goal of investing is to get more for the money you put in. This can be an investment in stocks, forex, crypto, or real estate. In today’s interest rate environment, it is not worth saving money in a savings account because interest rates are low. And if you add the current inflation, your money in the savings account even loses value.

How can you invest intelligently and easily as a beginner?

You don’t have to be rich or a professional to invest money wisely. You can begin with little money and attain high returns. Nonetheless, the offers on the Internet about investments are huge and it is easy to lose track. There are numerous ways to invest money. You’re probably wondering how much money you can start with and what forms of investment you can invest in. it is already worth investing a little money. If you now save an additional amount every month, you can invest the money monthly instead of leaving it in the savings account.

Investing money earlier is advisable because the money you invest keeps increasing and benefits from the compound interest effect. Compound interest is the interest paid on interest revenue. In the long term, the interest-bearing capital exponentially increases. The interest is therefore reinvested or rather accumulated. The compound interest effect occurs faster and faster over time and therefore the invested capital increases enormously.

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Invest money diversified

In order to minimize your risk and still be able to sleep peacefully in crises, it is important that you do not put everything on one card. Invest your money diversified, i.e. in several investments. ETFs, crypto, and forex are ideal for this because they invest in an index and therefore in the entire market. It is also important that you not only invest your money in your country but also have international investments. This way, you reduce the risk of just one country or one company. You can also read aaafx ratings if you want to invest in different platforms.

Invest with a long investment horizon

In order to achieve a high return with the lowest possible risk, a long investment horizon is crucial. Invest your money for the long term and only the money that you don’t necessarily need for the next 5 years.

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Financing In The Agricultural Sector

With greater utilization, higher yields, and larger areas, the production processes in modern agriculture leave less and less room for failure. Downtime can be expensive. Therefore, a continuous review or renewal of your machines is necessary, if necessary, for the expansion of the fleet.

The concept for your financing

The preparation of a financing concept includes the following aspects, among others.

  • Determine capital requirements
  • Create investment plan
  • Examine financing alternatives
  • Include possible funding

The acquisition of agricultural equipment is capital-intensive. You should therefore ensure that you have sufficient insurance coverage for your machinery.

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Finance: Tips On How To Lower Heating Costs

Did you know that it is possible to reduce annual electricity costs by half inside your house? This could save several hundred dollars a year. Of course, energy cannot only be saved when heating.

How to save money on heating and air conditioning

Keep doors closed

The doors to rooms where a lower temperature is required should remain closed. The doors to the hallway, which is usually colder, should also be closed so that the living room stays comfortably warm. A draft excluder can help keep cold air from getting in under the door.

Seal windows and doors well

A roll of caulking tape is inexpensive, but it can help reduce heat loss through doors and windows.

By the way, if you have a cat, you can tell from its behavior whether the windows are properly sealed. If the cat likes to lie on the window sill in the sun in winter, that’s a good sign. Where cold air is drawn through a window gap, a cat does not make itself comfortable.

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Bleed the heater

The radiators should be bled at least once a year. Because air in the radiator reduces the performance of the heating system, the thermal energy is then used. However, it remains unused because it cannot be distributed in the room.

Dust off radiators

Cleaning the heater also has savings potential. A layer of dust on the heater has an insulating effect and can thus reduce the heat emitted into the room. There are special brushes for the spaces that are difficult to reach. It is also helpful to have an expert from HVAC repair in Alexandria to check it occasionally. This can help lower energy cost.

 Lower the temperature at night

If you set a night reduction for the heating, you save a lot of money. It is best to lower the temperature an hour before going to bed. This saves additional energy, because it will take a while for the heating to cool down anyway.

Lower water temperature

As a rule, the temperature of the water when showering is around 37° Celsius, which is roughly the same as your body temperature. If you like it particularly warm, you can shower at a maximum of 43° Celsius. It is therefore usually sufficient to lower the maximum water temperature to 50° Celsius and save costs at the same time on your energy budget.

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The Financial Partner For Agriculture

Agriculture makes an important contribution to the security and quality of supply in worldwide. But in order to be able to survive in the face of competition, farms have to repeatedly invest heavily in machines and farmland.

The financing partner for farmland and agricultural land

Farmland acquisition is not only relevant to economic and operational growth in the agricultural sector. If you buy agricultural land, you are also using an important form of investment. Some bank supports farming in the financing of agricultural land. Together with financial institutions, you can develop financing solutions that fit your needs and your liquidity history. Long-term financing plans to protect your liquidity are also possible.

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How Sensible Is It To Buy A Bitcoin?

The hype never ends. The price of the digital currency Bitcoin has been rising. Other virtual payment methods such as Ethereum and Ripple are also becoming increasingly popular with many people.

How to buy a cryptocurrency?

In addition to the well-known Bitcoin, there are numerous other cryptocurrencies. These include Ethereum, Ripple and Dash, among others. They all act as digital money that owners can use to buy products. However, unlike “analogue” currencies such as the euro or dollar, Bitcoin and other products are not managed by a central bank. Instead, supply and demand alone determine the value of the virtual means of payment.

If you are interested in buying a cryptocurrency, this is possible with bitcoins, for example, via a marketplace or app such as bitcoin 360 ai. However, you need to check bitcoin 360 ai review so you can have an idea on how to mine bitcoin.

In marketplace, interested parties buy the digital money directly from other users, who set the price for the currency themselves. Alternatively, there are special trading exchanges where buyers transfer real money and exchange it for the digital currency.

Is it worth buying a cryptocurrency?

For whom it is worth buying a cryptocurrency always depends on the intention behind it. Anyone who wants to earn a lot of money as quickly as possible and therefore relies entirely on rapid price increases runs a high risk of losing their investments. In addition, interested parties should never invest their entire savings in cryptocurrencies, but rather consider the digital currencies as an additional investment. Since they are sometimes subject to strong price fluctuations, it is important that investors have a certain willingness to take risks. They need patience to be able to anticipate the right time for a sale.

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Buy cryptocurrency: what are the dangers?

In addition to the risk of exchange rate fluctuations, there are other dangers associated with virtual means of payment. The databases of the respective currencies are vulnerable to hacker attacks. In addition, the digital currencies are often used for criminal purposes because the payment methods are difficult to verify. There is also a risk of falling into the scam trap, especially for newcomers. Some providers lure with supposed virtual means of payment. However, these are not real cryptocurrencies, but fraud systems.

Another major point of criticism is the lack of security with digital means of payment. In the worst case, users can lose all their money in the event of a price collapse. Interested parties should therefore carefully consider in advance whether to buy a cryptocurrency and seek advice on possible investment alternatives.

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Towing Entrepreneur: Take Care Of Your Finances

The quality of an entrepreneur is not only measured by the health of his company, but also by the health of his private finances. What if the key to success was to manage them like your company’s finances, that is, with foresight, rigor and backed by the expertise of professionals?

Separate your personal and professional finances

The top priority when managing your assets is that private expenses must not be met with company funds. Your private assets should not be used to cover operating costs or to secure any liabilities of the company. In addition, the private use of loans that your company has taken out is prohibited.

This does not mean that you cannot receive dividends if the operating result allows it, nor that you cannot secure a bank loan for your company with a personal guarantee. The goal is to get a clear view of your personal and professional finances before the question of any interactions arises. As a result, the first task is to clearly separate your personal accounts from your work accounts. Only then do you determine what proportion of your private assets you are willing to invest in your company projects.

Separating work and personal finances allows for sound management of your finances. This also proves your professionalism and increases the trust of your bank, for example when you apply for financing.

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Managing your personal finances

No responsible towing san jose ca entrepreneur would think of neglecting his company’s finances. Why should this be any different with private finances? Manage them in the same way and use the same tools as you do for your professional finances.

The personal balance sheet showing your assets and liabilities. This balance sheet of your financial assets gives you an overview of your situation at a specific point in time.

It shows your regular income and your expected expenses. This allows you to estimate the development of your financial assets and make adjustments if necessary.

In accordance with your professional goals, you create reserves to expand your business activities, to renew your company’s equipment and for innovation purposes. Do the same with your private assets. A major purchase, your retirement, or the inheritance you’ll bequeath to your children are also goals that require careful planning. You should manage your private finances just as conscientiously as your professional finances.

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Finance: Vital Tips For Effective Budget Plan

Money makes the world go round. You work for money in order to be able to offer yourself a high quality of life. Given the importance of money, you don’t want to be blind to your own financial realities.

With proper planning and budgeting, you can get the most out of your hard-earned money and achieve a level of security when you’re in control of your income, expenses, and overall financial situation.

Time and money

Typically, you want to set a monthly and yearly budget. Income and expenses are likely to change after a year. So, longer-term budget projections aren’t helpful for anything other than getting a very general idea of ​​what the future might look like.

The best money tracking app is a great way to visualize the complexity of your budget over time. Tools like this can help you organize your monthly and yearly budgets in a logical way.

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Benchmarks of a realistic budget

Of course you want to earn more than you spend and save some, but it’s not as easy as it sounds. When setting your budget, you have to be brutally honest with your expectations.

A realistic budget meets at least all of the following requirements

  • Consideration of all costs and income
  • Is not too generous
  • Spend a certain amount of money on savings
  • Takes into account possible emergencies and surprise costs
  • Includes reasonable costs for food, accommodation and utilities
  • Determine your income

Calculate your costs

Put simply, your costs are your expenses. To better understand your costs in the context of your overall budget, it’s important to break down your costs into fixed and variable costs. With this information, you can better understand your cash flow and identify where you can save.

Your fixed costs are unlikely to change in the short term, but will in the long term. With an annual budget, it can be assumed that these costs are stable. If you rent on a monthly lease, your rent may change throughout the year. Therefore, allow an additional 20% of your finances for total annual rent, just in case.

Variable costs

These are the costs that should change every month. Variable costs are made up of essential and non-essential costs. Core costs are the things you really need, and non-core costs are the extra things you can safely live without.

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High Economic Performance Of Agriculture

 

Agriculture, forestry and fisheries are still important economic sectors as part of the national economy.

Agricultural purchases support the rest of the economy

Farmers demand many resources, capital goods and services. Primarily, the small and medium-sized businesses from trade, crafts and trades have economically close relation to agriculture.

Many farms also use a wide range of services. These range from advice on maintenance work to animal health and quality monitoring. Production-related expenditure in agriculture can amount to billion dollars every year. Government use finances from the agricultural sector to invest in machinery and buildings.

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Founding Bathroom Cabinets Sole Proprietorship

Most start-ups are sole proprietorships. Starting alone or as a solo founder has advantages and disadvantages. Very common legal forms for sole proprietorships are small businesses or freelancers. However, these are linked to personal liability. Therefore, remember to hedge larger risks.

For sole traders who want to exclude personal liability, there is also the option of becoming self-employed with a corporation.

What is a sole proprietorship?

Sole proprietorships are any business such as wholesale bathroom cabinets craft founded by a single person. The solo founder forms the company without a management team. Certainly, he can employ employees. The sole proprietor owns 100% of his business and can make decisions without having to consult a co-owner or a co-managing director first.

The term sole proprietorship is not defined in the law. In practice, therefore, you have the choice between different legal forms if you are founding a sole proprietorship or are planning to start a business as a sole proprietor.

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Setting up a sole proprietorship for bathroom cabinets: Advantages and disadvantages

When you set up your sole proprietorship, you have several legal forms to choose from. These legal forms differ in the founding process, the accounting obligations and the taxes. The question of naming is also an important decision criterion when founding your sole proprietorship. Only incorporated merchants and 1-person corporations can give your business a fancy name.

Freelancers, small traders and registered merchants are legal forms with unlimited liability. The owners of these sole proprietorships are therefore also liable with their private assets for all of the company’s debts with their own assets. On the other hand, the incorporation process is very simple for these three legal forms. The 1-person corporations offer the possibility of reducing the liability risk on the assets of the company.

The advantages of the uncomplicated foundation and the chance to be one’s own boss make the sole proprietorship a popular legal form. However, the liability risk hovers over the founder. In any case, the founder of a sole proprietorship should take care of adequate insurance cover. Anyone who chooses the legal form of a corporation when founding a sole proprietorship should know that the obligation to publish the annual financial statements is the price for the reduced liability.

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The Benefits of SEO for Businesses in the Agriculture Industry

In 2018, 78% of online purchasing decisions in the US started with a search engine search. Over 40,000 searches per second worldwide and over 3.5 billion searches per day. Well, that’s a massive amount of sales opportunities to discover.

Phoenix SEO helps small business owners like farmers and agriculturists to compete with industry giants for a fraction of their paid advertising costs. Properly implemented SEO can give your business “expert status.” In this industry, it’s all about reputation and relationship building.

Update website with high-quality content

The best way to update your site regularly is to write a weekly and monthly blog. Google loves websites that are regularly updated. The more time you spend reading the latest blog posts on your site, the more Google will love your site and actively boost your search rankings. Quality content doesn’t end with a few blog posts. Ensure all title tags, meta descriptions, and image names are relevant and helpful. The more you support your website visitors, the more relevant search phrases will rank for you.

Make sure your website is mobile-friendly

With so many people on mobile devices accessing the internet, your website should be easy to navigate no matter what device your visitors use.

The legacy desktop version can be challenging to view and use on mobile devices. A site is not user-friendly if visitors have to pinch or zoom in to read the content. When users get frustrated, they leave your site searching for a working site. 

Embed Videos and Images 

Images and videos give website visitors a reason to stay longer on her website and increase their chances of becoming customers. You should use graphics and photography throughout your website to present visitors with relevant visuals to your business. Use videos to your advantage by starting a YouTube channel, posting videos, and embedding them on your website.

Add Internal Links

This is a perfect and easy SEO technique you can use immediately. Read the text already on the site. Are you linking to other relevant pages on your site? Link these! Do your blog posts mention different products? Hyperlinks to these product pages.

Build Quality Backlinks

Quality over quantity is essential in any search engine optimization, and backlinks are part of it! Get links to your site from authoritative websites.

Set Up Google Accounts

Google offers a variety of ways for businesses to reach potential customers. Signing up for Google My Business, Google Plus, and other services helps Google understand your business better and show it to more people.

SEO is great for any industry, but it can be highly beneficial to farmers since their crops and animals are not just a part of their livelihood but also an integral part of their business. The prime benefit these farmers get from having an optimized farm website is that they are found faster by potential customers and more often.

Farmers who have created websites for them can better promote themselves as a viable choice to generate more sales than those who don’t invest early in search engines.

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Value Of Insurance For Construction Financing

Thanks to cheap real estate financing, people with an average salary can now find their way into their own home. This provides an excellent basis for old-age provision. In addition, your own four walls can later be passed on to your offspring. However, buying and owning a home comes with certain risks. For example, fire, hail, storm or lightning can damage your home.

Why is insurance important for homebuyers?

To protect against the financial consequences of certain risks, it is advisable to take out some insurance. They replace, for example, destroyed furniture and other furnishings. There are also policies that cover the cost of repairing damage to buildings. If you have not taken appropriate risk insurance, you must bear the financial burden yourself. In the case of major damage, this can amount to many thousands or tens of thousands of dollars.

Anyone planning to build a house should also deal with the subject of insurance and construction financing in detail. When erecting a building, mistakes and problems can occur that quickly lead to financial overload.

Insurance for construction financing: Overview

In order for homeowners to be able to face a wide range of risks, they should consider taking out certain types of insurance. The following policies are suitable for securing your property:

  • Homeowners Insurance
  • Household insurance
  • Home and landowners liability insurance

Insurance of this type serves to protect property. If you want to buy a house or an apartment, you should check in advance which of these safeguards you need. In addition, building your own home comes with additional potential imponderables.

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Additional home insurance

When building a home, a wide variety of causes can make the construction project more expensive or endanger it. You are also liable for damage caused by the construction site when building a house. It is conceivable, for example, that roof tiles loosened by a storm could damage surrounding properties or parked vehicles. If you want risk protection for this, you need builder’s liability insurance. As a property owner, you might as well need to get business owned life insurance.

Which types of mortgage lending insurance are mandatory and recommended?

In general, you are not obliged to take out appropriate policies either when building a house or buying a property. However, uninsured homeowners have to bear all the financial consequences themselves, such as damage to the building or inability to work.

It is difficult to give general advice on which types of insurance are necessary and which are possibly superfluous. The required policies depend too much on the personal financial situation and on the property to be financed or the building project.

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Sustainability And Financing In Agriculture

Sustainability means the preservation and at the same time intelligent use of natural resources. There is a challenge when it comes to sustainable management.

The development goes from classic agriculture to the sustainable management of renewable raw materials not only for nutritional purposes. In addition, industry players have to deal with related issues such as environmental protection, animal welfare and the production of high-quality food.

Industry-specific financing solutions for the agricultural sector

For companies that are active in agriculture, fast and easy financing options play an important role.

Corporate loan

A company loan can usually provide a quick remedy for production peaks. For example, this is ideal when financing operating resources.

Factoring

Selling receivables is a good way to obtain short-term liquidity without having to use expensive lines of credit.

Corporate leasing

Leasing is a liquidity-friendly financing option. No collateral is required.

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Finance and Productivity of Agricultural Firms

Agriculture is the main source of income among the rural poor worldwide. Agricultural growth can decrease rural poverty rates quicker and more efficiently. One significant vehicle to attain growth in the industry is finance.

What is preventing farmers and agricultural businesses to obtain finance?

Geography is a major reason. The large geographical dispersion of clients and low population density in the countryside make it hard for banks to work at a profitable scale. The absence of financial institution outlets has translated into a limited provision of saving and credit products to agribusinesses and farmers.

A second factor preventing financial institutions has something to do with the general risk related to agricultural activities. When adverse weather conditions happen, they naturally affect a big number of firms and farmers instantaneously. This makes it more difficult for financial providers to expand their portfolio of clients. When one client fails to pay, many others will be in the same situation. The political motives or paternalistic behaviour that governments may have can aggravate this problem.

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Benefits Of Smart Finance For Farms

In some key areas, it is particularly important for farms to have an adaptable and smart financing model. The circumstances in a global economy are constantly changing. Those who recognize this early on and react to it with the appropriate financial means can continue to increase sales and survive against the competition.

Investments in modern technologies become possible

Automated processes in ordering, harvesting, sorting and processing now enable an efficient increase in sales. It can help to increase the quality of the products. Factoring is the right financing option for agriculture. Thanks to quick liquidity, you can invest in new technologies and implement the restructuring of your own company. In this way, you can fully exploit the growth potential and initiate modernization processes.

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How Agriculture Financing Help Farmers

If you have an agriculture business, you are aware that farming can be costly. The costs of running and starting up a farm can be overpowering.  Probably, you’ll need financing especially if you’re new to the industry. This is where agricultural financing comes in.

Agriculture financing to buy farm equipment

If you’re just beginning out in the agriculture industry, you may considerably underestimate the value of specialized equipment. Thoroughly research the costs and options for the equipment you’re going to need before you over commit. Make sure it fits into your business plan.

Consider consulting with other people that have experience in the industry to get their insight on what kind of equipment you’ll need.

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Financing The Agriculture Sector

Agriculture plays an immense role in the life of people, especially in developing countries. It has a great impact on people living in rural areas. Numerous people rely on agriculture as a source of their daily income.

Nevertheless, getting agricultural finance can be a problem for most farmers. Numerous people are not able to access financial support for their agricultural needs. This can possibly be a limitation for farmers to grow. This could be an issue for them not to benefit from new technology and devices that can expand in their agricultural needs. All these new devices and technology can help increase production and proficiency.

Use of financial machinery in the agriculture industry

The finance sector has a key role to play in permitting agriculture to contribute to poverty reduction and economic growth. A speedily evolving technological landscape is opening up new possibilities to target and price credit. At the same time, many difficulties are not technological. Thus, it is vital to seek strategic places where investment and policy can help to increase outcomes for agricultural households.

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Financing the Agriculture Sector

The sector of finance has a main role to play in letting agriculture contribute to poverty reduction and economic growth.

Importance of financing Agriculture

Agriculture finance take on vital and substantial importance in the development of agro, socio, economic of a country. This is both at the macro and micro levels.

Financing agriculture can play a catalytic part in augmenting the production of scarce resources. In addition, it plays a crucial role in strengthening the farm business.

Developing access to finance can raise the investment choices of farmers. This can provide them with more efficient tools to handle risks.

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Financial and Agriculture Sector

In this modern world of financial inclusion and economic development, it is sometimes tempting to oversee the basics that promote growth.

Success in the financial and agriculture sector

One basic is the agriculture industry and its relationship to the success and growth of the financial sector. Upon a quick observation of the two industries, the contrasts could not be more obvious. The financial industry, with its exchange markets, banks, and insurance companies, can perceive a realm for success. It is where money is abundant. On the other hand, people perceive the agriculture sector with its smallholder farmers with limited resources as the realm for limited opportunities.

It is very vital to understand that finance and agriculture must go hand in hand. This way, they can reach the heights of their possible success.

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Careers in Agriculture

When people hear about Agriculture they relate this word to just farming. This persists because farming is the corner stone of the Agriculture industry. But we have to understand that there is much diversity in agriculture. Here are some misconceptions about what you think about Agriculture.

  • Planting something in the ground, harvesting and selling the crops.
  • It’s a career that brings you nowhere.
  • You have to actually grow up in a farm to have a career in Agriculture.
  • It’s a heavy and sweaty work but in reality it is innovation driven.

In agriculture there is endless possibilities and opportunities. It may not be easy but you can be successful in choosing a career in Agriculture. Here are some careers you can pursue in this Industry.

  • Agricultural Operation’s Manager. The average annual salary is $61,080.00.
  • Animal geneticist. The average annual salary is $68,840.00.
  • Food Scientist. The average annual salary is $71,990.00
  • Agricultural engineer. The average annual salary is $74,480.00
  • Agronomy Sales Manager. The average annual salary is $76,470.00
  • Bioinformatics Scientist. The average annual salary is $80,200.
  • Environmental Engineer. The average annual salary is $86,800.00
  • The average annual salary is $91,190.
  • Agricultural economist. The average annual salary is $104,920.00.
  • Agricultural lawyer. The average annual salary is $115,820.00
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Sustainable Agriculture in Brazil

Sustainable agriculture is vital to a nation’s economic and climate goals. It limits deforestation while increasing crop yields. It boosts climate resilience while generating income.  An emerging trend in sustainable agriculture is ICLF, or Integrated-crop-livestock-forest systems. In Brazil alone, it has the goal of implementing 500 million hectares of ICFL systems by 2030 to reduce greenhouse gas emissions.  Yet, ICLF adoption rates remain low. This is mainly due to credit line that are poorly adapted for its implementation and lack of information.

The Sustainable Agriculture Finance Facility, or SAFF, is a vehicle to increase the adoption of ICLF through a combination of accessible and customized credit lines, a unique certification system, specialized technical assistance and a certified sustainable suppliers’ market. A bundle of five credit lines will be offered to compliant farmers for costing, soil correction, cattle, machinery and forestry.  In addition, farmers certified by the SAFF earn a unique trust score which is updated weekly. This will allow for better credit evaluation and environmental monitoring.

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Blended Finance for Agriculture

The future of the environment and businesses are closely interlinked. Climate change now poses the biggest and most obvious threat to the global economy over the next decade. Market and reputational risks as well as regulatory pressure on companies linked to unsustainable soft commodity production means current business practices need to change. With many already exposed to potential stranded assets. So how do we redirect private capital to avoid forest and biodiversity loss. We should improve and educate local communities and ensure that the agricultural sector thrives through profitable business models.

Combining the capabilities of banks, government agencies, and agri-businesses through blended finance instruments is key to transforming the way we finance sustainable land use. There are already some organizations that started this program and it finances many sustainable agricultural businesses. The success of this program will lure other banks, investors and agribusinesses to finance projects that combine financial performance with clear environmental and social benefits. It is impossible to achieve sustainable development if we cannot finance it. Both the private and the public sector should work together to achieve this goal.

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How Banks Grant Loans to a Farmer

The decision to lend by any bank ultimately depends on a client’s ability to repay the loan. This in turn is also dependent on the client’s cash flow. Insufficient cash flows equal non-repayment. No matter what the size or scale of the farmer’s estate or reputation, a bank will its knowledge and agricultural expertise to estimate cash flow of a farmer. The banks decide whether the farmer will be able to repay the loan. Sector specific knowledge will also be used to shape the terms of the loan and establish how best to monitor the client throughout the season so as to be able to quickly spot any issues. Lending to farmers and assessing cash flows presents a number of challenges less prominent in other sectors.

Cash flow with agricultural production is not regular. It is somewhat lumpy. When producing a crop the farmer will often need to invest on seeds, fertilizers, pesticides, labor, maintenance and harvesting upfront. Yet farmers will only receive an income from their crop once they have harvested and marketed it. Depending on the crop, the farmer may only receive income once or twice a year. This lumpiness needs to be taken to account when scheduling loan disbursements and repayments. Banks will typically monitor a loan performance based on the receipts of regular payments taking an early action when payments are delayed. When loans are repaid with just one payment at the end of the season however banks may want a regular visit to the farm throughout the period of the loan. This allows them to check in with their borrower and insure that crop production is on-track. Along with the regularity of payments, farmers yield and prices in agricultural production will also vary from season to season.

Often based on factors beyond their control such as the weather. A loan officer ensure they factor in any potential fluctuation and use appropriate sensitivity when forecasting cash flow for an agricultural client. The loan officer needs also to appreciate that small holder incomes and expenses are not solely reliant on agriculture production. But it needs to be considered in relation to the entire households’ finances.  Cash flow forecasting must assess the household’s position in its entirety with repayment capacity based on whether they is sufficient household cash after all expenses have been considered. Essentially a bank should only lend to farmers if they can accurately assess the household’s complete financial situation and projected cash flow throughout the loan period. Otherwise there’s a risk of being caught out come payment time.

 

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The Role of Land Banks and Agricultural Cooperatives in the Agricultural Sectors

Agriculture plays a very important role in the development of a nation’s economy. It contributes a big percentage in a country’s GDP and the population depends upon this sector. But most of the times farmers are faced with the problem of inadequate financial state. Professional money lenders are the easiest way for farmers to get credit. With the creation of Land Development Banks and Agricultural Cooperative, farmers were able to seek help from these establishments which has contributed so much in the improvement and development of the agricultural sector. They advance credit mostly for agricultural purposes.

 

 

 

The creation of Agricultural cooperative has also help in the sector’s improvement. Through agricultural cooperatives farmers can pull their resources in certain areas of activity. They provide services to their farming members. The cooperative is mostly founded and managed by farmers. The farmers pool their resources to improve the way they produce and sell. The agricultural products raised in their farms like milk, fruits, meat and vegetables are collected and processed by their cooperatives. They become the products that the community eat and consume.

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Financial Opportunities in Agriculture in Developing Countries

People in rural areas in some developing countries earn their living through farming and agriculture. Oftentimes these farmers experience difficulty in obtaining financing for their farming needs. This can greatly impact their production. In reality this is a troubling situation to many farmers in this countries. Many organizations have been established to provide special financing services to these farmers that are adaptive to their needs. This will allow them to improve their living conditions and at the same time help it will increase their self-sufficiency for food production. Access to financial services is still a great problem to some areas in developing countries.

 

 

 

 

 

 

Financial Services and products which are offered to farmers:

  • Deposit services
  • Loans

These loans and deposits can finance the purchase of the following:

  • Fertilizers and seeds
  • Equipment needed to modernize production
  • Warehouse credit
  • Micro processing and commercialization

 

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New Innovations in Agriculture

Over the next decades a new innovation will revolutionize the efficiency of farms all over the world. It will be a breakthrough in the Agriculture sector.  This will not come soon enough but. In the year 2050 it is estimated that the human population will be nearly 10 billion. This means we need to double the amount of food we now produce. To attain this, it needs the intervention of the government, and all sectors in the society. We also need to consider how to finance this.

The changes brought about by technology specifically in farming has allowed farmers to do other things in life. There has also been a surge in productivity.

Examples of innovations in agriculture are:

  • Autonomous Picker.  This machine can work twice as fast as humans do.
  • Robotic weed and Pest killers. Instead of manually removing the weeds, this device uses lasers to zap the weeds away. This has a big impact in Agriculture since many crops are destroyed by pest and disease.
  • Micro-sensors. This sensor monitor crop growth and will alert farmers in their smart phone if there’s a problem or when the crops are ready to harvest.
  • Robotic Soil Sampler. It takes and liquefies soil samples to know its Ph and phosphorous levels all in real time.

This are just a few, note that there are many more innovations in Agriculture.

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Sustainable Agriculture

Vegetable farmers in many places especially in rural areas rely heavily on the use of synthetic fertilizers and pesticides, which are not only toxic but costly. Thus farmers sometimes get sick, face declining incomes and in the process destroy the environment and endanger the health of not only them but the consumers. This is significant because it poses a big risk to both consumer and the farmer. Many organizations are actively promoting viable alternatives through environment-friendly farming technologies and innovations. Bio dynamic farming is one option for this. It has the principles of practicing farming technologies that adhere to chemical free farming.

Sustainable Agriculture

 

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The Importance of Financing in Agriculture

Agriculture plays a big role to the life of people especially in developing countries. It has a great impact on people living in the rural areas. Many rely on Agriculture as a source of their daily income. However access to agricultural finance may be a problem for most. Many are not able to get financial support for these agricultural needs. This maybe a hindrance for farmers to level up. This can be a factor for them not to avail new technology and devices that can improve in their farming and agricultural needs. All these new technology and devices can help increase proficiency and production.

With the coming years there is a high demand for food and other agricultural products. In this case the  agricultural system should improve. The only way to attain this is by acquiring the newest agricultural devices and technology. These are good investments that would allow farmers to produce more.

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Agricultural Financing For Farmers

With today’s advance and changing world, new technologies have emerged in the agricultural sector. It’s needed and important to increase the production in farming. Every farmer wants to avail of this new technology however not all can afford an upgrade. Farmers specially in developing countries cannot afford to have this technology. They do not have the capital and money to purchase the newest equipment and tools. Because of this they opt to stick with the traditional way of farming because there is nothing they can do.

 

 

 

 

Farmers need money or capital to increase one’s production. Farmers need to adapt and embrace the newest technology that can help them in their farming needs. This in return will yield better harvest and production.  But not all farmers have the capital and money to spend for this. This is where they seek farm financing. Farm Finance has become vital to these farmers because it can help them gain the needed money for financing various farm resources. Aside from banks credit agencies are also available in some rural areas. They can assist farmers with their capital needs by providing credit to farmers. However, the credit policies, credit rationing, interest rates and other factors can have a significant bearing on farm returns.

 

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Expanding The Agricultural Industry to Guarantee Food Security

The digital age has done so much for people. Advance technology has allowed faster and easier communication among individuals and businesses.
 
It has also been helpful to the agricultural industry. It has given farmers the ability to reach out to bigger markets. This made business transactions faster and more economical. It also allowed small-scaled farmers convenience and higher financial gains.

Howard Buffett: Farming and finance

 
As we all know, Agriculture plays a significant role in a country’s economy. The demand for agricultural products is increasing. This is true because of the booming population. Food is the utmost priority of every nation around the world. Thus it is significantly important to expand agriculture in all corners of the globe. This will give our farmers the opportunity to gain more. It will also guarantee mankind’s food security and poverty reduction.
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Uses Of Agricultural Loans

Loans, whether short term or long term, secured or unsecured, could be very helpful for many persons and businesses. Citrus Loans, for example, offer a broad array of loan options and alternatives that could match and meet your needs for credit. If borrowers aren’t successful at applying for a loan in one of their major products, they do still have other alternatives that could fit the borrower’s needs.

In the industry of agriculture, farmers could also apply for a loan to use in their farming business. Just like any other form of business, operating and managing a farm or any agricultural business comes with its own set of challenges as well. Although the industry of agriculture has its particular challenges to  surmount, there is a challenge that individuals in the industry of agriculture, such as ranchers, farmers and entrepreneurs, that similar to other business owners encounter form time to time, the need for capital and other financial concerns.

It is without a doubt that owning and running a ranch, a farm, or any other business under the industry of agriculture go together with immense heavy expenses and financial needs which are usually used to buy large heavy ranch or farming equipment, purchasing land, and/or for paying their employees and business operations. Frequently a business owner couldn’t deal with such financial challenges alone, and these expenditures could swiftly stack up if left unsettled, leaving business owners, even the most equipped, struggling to keep the business going. This is where agricultural loans enter.

Agricultural Loan Uses

Agriculture or Agricultural loans are purposely allotted for agriculture use, and careful and responsible use of the loan could aid in the success of your agricultural business.

But prior to applying for one, you have to formulate a plan on how to use the loan the proper way, primarily where and what you need the money for as well as how much you need. Below are some agricultural loan uses to consider so you won’t end up mismanaging your funds.

Procure Equipment and Supplies

You can’t efficiently operate a farm if you lack the equipment specially designed for your farming needs, such as tractors, silos and irrigation systems. Great-quality, reliable farm equipment would last a bit longer and make job much easier, however such equipment could be quite costly since you have to take into account operational costs and supplies such as fuel, repair and maintenance, seeds, fertilizer and others. So, assess what equipment you need, whether you need a new one or would only need repairs. Additionally, compare prices so you could determine how much you need to loan and that you would be able to pay it off.

Covering Cost of Land

Agriculture loans could be utilized to buy or lease a land. Buying or leasing a farmland could be complicated. Moreover, the type of land you require will rely on the type of farming you intend to do. Again, evaluate your needs and decide the amount you need to borrow.

For Land Enhancement & Repairs

Farms require regular upkeep to run efficiently and productively. Agriculture loans could be utilized for pricey improvements or repairs/maintenance to land and/or infrastructure. However, such improvements and upkeep could help further the value of your land, better your products and make more efficient your business. With consumers being very conscious nowadays, you’ll need to keep with most recent trends in land care as well as ethical farming.

Other Uses:
  • Refinancing of a Previous or Older Loan
  • Advertising and Marketing Efforts
  • Covering Costs of Operation
  • Rebuilding Following a Natural Calamities

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The Farm Bill and the Cannabis Stock Market

Generally, politics has been a strange fellow for some. This applies true to the weed industry when both the Senate and the House approved with an agreement on the Farm Bill that helps to have marketing plan development for your crops. The current edition of this bill has an aim to legalize the industrial marijuana. Credits to Mitch McConnell, the Senate Majority Leader who pushed through this bill and firmly argued the great advantages to the economy of legalizing the weeds. Moreover, this bill also makes the regulation of the weed be covered under the control of the Department of Agriculture of US and not of the Department of Justice.

The History of the Farm Bill

Farm Bill of 2014

This bill is the beginning of legalizing cannabis. The programs of those university-affiliated agricultural researches are permitted to cultivate hemp plants under this bill. But, it should be provided that those institutions are registered under the Department of Agriculture.

Unfortunately, the bill expired and the renewal was blocked by arguments from the Supplemental Nutrition Assistance Program (SNAP). There were also arguments and disagreements coming from the forestry practices. This basically originates from the wake of the fires within California.

Farm Bill of 2018

Compared to the previous Farm Bill, this bill of 2018 is more complex. It imposed to regulate the distribution of about $867 billion cannabis for the range of five years. This were conducted via a range of agricultural and food programs.

The Effect of the Farm Bill

Basically, the kind of help that weed farmers and producers really need is the legalization of their product.

Due to the approval of the Farm Bill, hemp legalization has taken into place. This makes the cannabidiol or CBD, an active constituent of hemp, produced legally in different states. Its production and distribution had experienced a great blast as the cultivation, transportation, and sale of the weed products can be done without restrictions. Due to this economic effect, the Director of Research of Brightfield Group, a cannabis research company, stated that they are expecting the cannabis market to greatly explode. The sales of cannabis products would hit around $22 billion by the year 2022 which is generally greater compared to the industry of cannabis in US.

Moreover, there are giant movers within the cannabis industry by now. They are actually big players in the industry and total game changers for this kind of market. To name a few, here are some well-known cannabis companies:

  1. Canopy Growth (CGC)
  2. Aurora Cannabis (ACB)
  3. Cronos Group (CRON)
  4. OrganiGram (OGI)
  5. Turning Point Brands (TPB)

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Innovations Has A Great Impact To Farmers

Agriculture is rapidly changing due to technological innovations. Precision farming using Artificial Intelligence (AI) and machine learning or a drone as an agricultural assistant. Smart systems are everywhere these days; from the high-tech buildings, automation to automatically playing your favorite morning tune with Amazon smart speakers. One of the fastest-changing sectors due to technical innovation is arguably the agriculture sector. If you are interested visit this site LA Century Law.

Fewer resources, more potatoes

The time of the small (local) farmers who produce for self-sufficiency is over. Many small subsistence farmers have been transformed into large professional farms with optimized production processes. Technology adoption in agriculture has made this possible. This transition is partly due to the need to get the most results with as few resources as possible. On the other hand, there is an increasing need for sustainable production processes on a global scale. The sustainable debate is open, consumers are increasingly concerned about the use of pesticides and sustainable use of scarce raw materials is high on the agenda. Agriculture had to evaluate.

Technology and Agriculture

Technical innovation in agriculture: smart farming

Farming teams around the world are experiencing a growing interest in agricultural technology. Wageningen has now established itself as one of the most innovative and renowned agricultural universities in the world. The government, agribusiness, and knowledge institutions have joined forces to enable technological innovation in agriculture.

Automation

is one of the spearheads when we talk about technology innovation in agriculture. Farmers are now making full use of automated milking and feeding systems, saving people and resources in this way. Together with the IoT (which we will talk about in a moment), automation enables energy savings and optimal growth of crops and livestock by delivering exactly the right raw materials or care at exactly the right time.

Robotics

more than a quarter of the Dutch dairy milking robots. There are thousands of them worldwide, often of Dutch descent. Robots help farmers with milking, but also with cleaning up manure. It is estimated that by 2026 the industry will be worth about $ 8.5 billion. In addition to milking robots, there are now robots that can recognize crops, hoe weeds, and analyze plants in order to take a specific action.

IoT (Internet of Things)

Where self-driving cars are on the way, this also applies to autonomous tractors. Self-driving tractors, unmanned helicopters, sensor technology, and autonomous drones help farmers organize the production process more efficiently and collect important data. Smart sensors are used to measure soil and air quality and then act on this by, for example, automatic spraying. IoT and machine learning make precision agriculture possible ( also known as; smart agriculture). This is a form of agriculture in which plants and animals receive exactly the right treatment by means of sensor technology. These sensors collect data on soil and crop behavior, animal behavior, machine status, storage tanks, and climate, and other environment-related measurements. This information is forwarded to the cloud. The use of sensor technology has been used in other sectors for some time, for example with the building automation app that we developed for Vandlanden.

Data management & mobile applications

is in an emerging gear in agriculture. According to experts, data management may soon be even more important than robotics itself and this is where the major opportunities lie for the agricultural sector. More and more often, for example, the Netherlands monitors customers in another continent by means of computer-controlled control techniques. Mobile applications are also increasingly being developed for agriculture and farmers. An example of this is a mobile app in Myanmar for local farmers. The app provides farmers with up-to-date information about market prices and they can order products with their mobile. Another good example is John Deere, a company that manufactures farm equipment. John Deere saw opportunities in the market by offering big data services. For example, they are adding smart sensors that provide all kinds of information via an app. Not only does it offer a unique and huge dataset, but John Deere also has a completely new source of income.

Technical innovation in agriculture

A sustainable future through smart farming using complex digital assets
Receive a text message when it is just the right time to harvest, a drone that flies over the land collecting data, and a robot that then harvests it in the most efficient way. By deploying smart technologies, the full potential of agriculture can be exploited. This includes sufficient sustainable food, employment, and the development of stable economies for less developed countries. As an innovative app developer,

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Making An Investment In Agriculture – What You Need To Know

Having an investment portfolio could be very helpful in realizing your long-term financial goals. For instance, being able to fully pay your mortgage at an earlier time, build a place where you could retire, or perhaps pay your children’s university fees. While having a savings accounts provides easy access as well as the protection of a guaranteed capital, returns could be small and insignificant. On the other hand, investing in stocks, bonds, bank products, commodities and other investment options can offer stronger and bigger returns in the long run, although the level of risk is high.

If you decide to make an investment in any of these, it is imperative that you choose a reliable brokerage firm with a simple yet efficient trading platform. For instance, ROinvesting started in 2017 and is regulated by Cyprus Securities and Exchange Commission (CySec). This online brokerage firm offers CFD trading on an array of assets, which includes stocks, forex, commodities, gold, and even cryptocurrencies. To find out more, check out roinvesting reviews.

Investing In Agriculture – What You Need To Know

When it comes to investing, many go for the usual investments products so many are hesitant to make an investment in agriculture, particularly those who don’t have enough experience or knowledge in the land industry. One common conjecture is that merely farmers are knowledgeable about agriculture making them the only ones confident enough to make an investment in it. But, agriculture could be an excellent investment not only for investors but for anyone. However, before you start investing in agriculture, there are some things that you have to know.

There Are Many Ways To Make An Investment

There are numerous ways to make a profit from agricultural land as well as be able to do a lot of them at the same time. Investors could earn from the returns of the yearly crops. Moreover, over time, a land of good quality historically grows in value, which means by simply holding the agricultural land could generate revenues as its value increases.

Agriculture As Inflation Hedge

Historically, the price of food increases over time allowing agriculture to act as a hedge against inflation. It is an investment which is protected against the negative and unfavorable cost of inflation to an investment. Population growth of the future is also beneficial to making an investment in agriculture. Since the global population is predicted to increase to 9.8 billion by the year 2050, the demand for food will also increase. To meet the demand for food and feed the ever-increasing population, there will be a need for a dramatic increase in the global production of food. With the increase in demand of food, there could be an increase in the crops’ value as well.

Offers Long-term Investment

When the economy is healthy, people frequently place their money in stocks with high risk and high rewards that provide fast and huge ROIs. Crops require a certain time for them to grow and thrive. Certain crops may take years to reach its maximum potential. But then again, as food is a necessity, there will at all times be a steady and stable demand for food. Hence, this kind of investment could add slow yet steady growth towards your savings. This may drive you to rather invest in stocks that can make you rich really quick. However, making an investment in stocks that are safe and with slow returns is imperative for the general wellbeing of your investment portfolio.

Investors Are Protected By Crops Insurance

With numerous factors that could affect the planting season, investors may be hesitant to make an investment in agriculture. But you shouldn’t worry since crops insurance was made to provide protection both investors and farmers. In the event crops are ruined because of natural causes or there is a drop in the value of the crops, the farmer will still be receiving funds from the insurance provider. Therefore, investors could still receive their yearly returns.

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Real Estate vs Agriculture: Which One Should I Invest Into?

Farm Houses

 

Savvy investors have realized the benefits of possessing real, real estate assets, particularly those backed by inherent property. Property, both residential and commercial, is likely most recognizable to other investors. But agriculture provides lots of the very exact advantages and will help diversify the true advantage elements of your portfolio. Generally, both industrial property and agriculture create returns by collecting rents from tenants and yields in the appreciating value of the property and the improvements on this property.

Variety is the Spice of Life

Both property and agriculture represent a broad spectrum of land (or harvest) forms. The real estate investment world consists of single-family houses, multifamily apartments, commercial office buildings, and retail stores. Every one of these classes can be further split into more technical locations. Production agriculture comprises specialty crops, row crops, lumber, livestock operations, plus also a few newer types such as vertical and agriculture. And, these numerous products could be further specialized in classes by how they’re grown, including farming, organic farming, and also from the scale of their operation.

 

ALSO READ: Financial Opportunities in Agriculture in Developing Countries

 

Location, Location, Location

Location is equally as crucial in agriculture because it’s in a property. In property, a desired business real estate may be found on a high traffic junction or even some multi-family asset could work better in a place having a growing and diversified market. If you have a house at an ideal location that you can sell (check out, the value can be increased tenfolds than when it is anywhere else.  In agriculture, even a desired farm has great land, access to water, and proximity to infrastructures such as streets or processing centers. In addition, while one property marketplace or land type may be on fire, many may have fallen in favor with investors or just because they’re in economically depressed regions. Unlike property, the goods of agriculture are portable, so commonly the products generated may be carried across state or global boundaries. Obviously, some products, such as coffee or cocoa, are significantly much less perishable than other people, such as poultry or lettuce. Before investing, it’s very crucial to comprehend the comprehensive supply chain of an agricultural product, from manufacturing to processing, to transfer to market.

Ups and Downs

Ordinarily, both property and agriculture investments have been long-term, illiquid, and thus do not endure the volatility of their stock exchange. Like property, agriculture products have a tendency to move in cycles, and even if costs of a specific harvest are miserable for an elongated time period, the land worth can start to fall also. These market drops offer the opportunity for the clever real advantage investor. With few exceptions, agriculture seldom undergoes “bubble” markets, like the ones that happened in residential property ahead of the financial meltdown of 2007-08. Later on, the two asset categories will profit from unstoppable market tendencies. Home and meals are just two requirements whose need increases with an increasing population. International urbanization decreases arable land, rising farmland values. Ultimately, as populations rise in prosperity, they are inclined to consume more protein, yet another factor limiting the long-term prognosis of farming investments.

 

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How do you raise the financing of a farm?

Nowadays, even those young people who did not grow up in agriculture decide to take over a farm. It attracts independence and the resulting professional and private creative freedom. Aside from investing in one of the top bitcoin mixer, some people want to try investing in agriculture.

However, starting a business in agriculture not only requires “staying power”, but also a well-developed financing plan.

In contrast to a leisure business, a farm that strives for financial profit is referred to as a farm. Agricultural areas include arable and plant cultivation as well as animal breeding, but also forestry, fruit growing and viticulture. Nowadays, technology has caught up with these areas, so that many necessary investments in the technology area are very cost-intensive.

Important steps for starting a business

Certain bureaucratic measures are absolutely necessary for setting up your own farm. This includes, among other things, the registration of the company with the municipality and the mandatory registration with the Chamber of Agriculture. In addition, the tax office wants to be informed, questions about income and sales tax payment must be clarified.

In addition to these steps, the question of financing is of course crucial for starting a business – not only in agriculture. Therefore, as in other industries, it is important to develop a well-founded financing plan in order to know how high the costs are that have to be borne.

Which type of loan is the right one?

Agriculture is a capital-intensive industry, so an equity share of at least 30 percent is recommended when setting up or taking over a farm. The rest of the required sum is taken out as a loan and then repaid piece by piece. A prerequisite for continuous repayment is of course that a profit can be foreseen in order to be able to cope with the repayment. The “golden rule of financing” provides that the length of the repayment corresponds to the life of the investment object.

Use state funding programs

Especially for the agricultural sector, start-ups have various funding options available. An early application is important in order to receive the funds on time.

Three factors are decisive for the long-term success of an agricultural business: profitability through long-term profit, financial stability and healthy liquidity through reserves in the form of equity or debt.

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Renters Insurance Comparison And The Types of Farm Insurance Coverage

An insurance is a very smart investment, and with the multiplicity of insurance in the market, insuring just about anything and anyone is possible.

Comparing Insurance

For renters, whether its an apartment, a house, a condominium or even just a room that you rent, a renters insurance is a very worthwhile investment as it will protect your personal property in the event of a burglary or if they get damaged or destroyed by incidents covered in your insurance policy. Moreover, a renters insurance could also protect you paying for legal or medical expenses in case an accident happens within the property you are renting.

Renters insurance policies have different coverages; hence you need to determine your needs to ensure you get the right policy from the right insurer. As there are numerous, you will need a Renters Insurance Comparison to help you find good options, narrow down your search, and make comparisons. With Renters Insurance Comparison, you will save a lot of time and effort as well as have a better understanding of the policies and coverage offered, eventually leading you to make an informed choice.

Types of Farm Insurance Coverage

If you are working in the sector of agriculture, there are other types of insurance you could get rather than settling for the usual business insurance. The farm, crop and livestock insurance will most likely be a good option for you. Typically, this insurance involves a bundle of various types of insurance which are designed to provide coverage for farm businesses as well as major producers for an array of events.

Usually, farm businesses bring together business insurance types and personal insurance types, whereas farm cover coalesces a particular set of coverage. Let’s have look at some.

  • Home and Contents. This insurance type covers damage, loss or theft on the farm owner’s house and the contents or belongings on the home of the farmer.
  • Farm Motor. This is comparable to an insurance for motor vehicles, however Farm Motor Insurance covers extra risks that you may be exposed or subjected to when working on a farm.
  • Farm Machinery. As the term implies, this covers farm machineries like tractors as well as other related equipment utilized in and for farming. If you are leasing out your farm machineries, such insurance is a compulsory component of the lease agreement or contract, or may be owned.
  • Farm Liability. This is a specialized type of insurance product and it is imperative that you make certain the insurer you choose greatly understands the added risks involved in your farming business to ensure your coverage is adequate.
  • Fencing, Hay and Livestock. This insurance type protects your livestock and your produce from unintentional injury, damage, theft, harsh weather events as well as other catastrophe and misfortunes. This will all depend on the exclusions of your policy.
  • Business Interruption and Loss of Income Insurance. This covers accidental injury, damage, or theft as well as occasionally severe and harsh weather events which inhibits you from generating an income from your everyday business operations and activities.

 

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In Agriculture, Finances Have To Be Set Right

Whether starting with organic farming or modernizing the agricultural machinery park, when farmers want to invest, public subsidies often come into play. Securing income is also becoming increasingly important. Many farmers are now looking at other alternatives to raise extra capital. Alternatives include trading in the Forex Market entrusting their investments to trusted forex brokers like those from https://moreforexbrokers.com/ja/fx-brokers/.

Almost every year, nature has been showing what it is capable of – in a negative sense. The winter too mild, too dry, and too sunny, late April with frost onset as well as heavy rain, hail, and hurricane, for example, thwarted fruit growers and drastically reduced harvest yields. Farmers also have to adapt to new risks in terms of financial security. There is a great interest in new policies. United Hagelversicherung reports more than 11,500 new contracts for a product that ensures storms and heavy rain events in addition to hail.

The Farmers Association sees a learning process on both sides in this regard. The insurance industry has to design new products and farmers have to learn how to use them properly. After all, weather damage can quickly become life-threatening.

Agricultural finance: encouraging investment

Short-term financial bottlenecks can also be overcome with public funding if they are triggered by extreme weather, plant, or animal diseases. If a company can demonstrate a drop in earnings of at least 30 percent in a sector, there is the possibility of receiving liquidity assistance – for example, to buy seeds for the next year.

Weather damage can quickly become life-threatening.

Expansion and modernization investments are also funded. Agricultural businesses can obtain loans of up to ten million euros for up to 30 years. It is important that public promotional loans are only to be applied for from banks. In the agricultural sector, these are often savings banks and cooperative banks. Some of these banks also have credit advisors who specialize in the needs of agricultural businesses.

Leasing as Alternative

In addition to classic loan financing via the house banks, leasing has now also entered the agricultural sector as a form of financing. In the agricultural sector, this is an interesting option, especially for machines that are only used seasonally. Instead of taking out an agricultural loan to buy machines, systems, or equipment, agricultural businesses can also lease these goods. The farmer is allowed to use the leased property during the specified leasing period and pays the lessor the contractually agreed leasing installments. The lessor remains the owner of the leased property. In return, the farmer saves the acquisition costs and the credit line is preserved. The company can deduct the leasing installments from tax.

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How the Norwegian Gov’t. and Norges Bondelag Helped Farmers Face the COVID-19 Crisis

The Norges Bondelag and the Norwegian government exemplified the power of unity in helping farmers handle the challenges brought on by the COVID-19 pandemic. Even today, and true to its purpose as a farmers’ union, Norges Bondelag (Norwegian Agrarian Association) continues to work with the government in addressing the challenges that farmers faced during and after border closures and national lockdown.

When Lack of Workers Affected Farm Production

When the Norwegian government closed Norway’s borders in mid-March, foreigners, including seasonal farm workers were not allowed to enter the country. Farm productivity, particularly among fruit and vegetable growers, suffered from lack of workers. At the same time, as schools also closed, farmers had their hands full taking care of their children and in coping with the lack of farm hands to maintain production.

To address the issue, the Norges Bondelag and the Norwegian government found a solution by getting laid-off workers to temporarily work in farms. As an incentive, the Norwegian government offered laid-off workers volunteering for agricultural work; the right to keep 50% of their unemployment benefits even while employed as farm workers.

In June, 2020, although Norwegian borders remained closed, the government allowed foreign workers to enter, for as long as they tested negative of the coronavirus disease. Even up to the present, testing is being done prior to entry, while those who presented negative test results still have to stay quarantined for 10 days, whilst needing to undergo another test on the 5th day of quarantine.

Norwegian employers assume the responsibility of organizing and financing the costs of testing and quarantine measures and in working out arrangements for related cost recovery. Only those who completed the 2 tests and the 10-day quarantine period can move forward with their seasonal employment contracts. In addition, quarantine measures remained strict because workers have to stay confined to their respective workplace during breaks and day offs.

As Restaurants Closed and Tourism Out, Farmers Struggled with Little Income

While the government strictly imposed mitigation measures to prevent the spread of the infectious disease, restaurants to whom farmers supplied their agricultural products and services went into lockdown — leaving farmers with meager income from their farm produce. Agri-businesses were constrained to sell meat and dairy products at low prices in observance of the country’s price control and market regulation policies.

While farmers took the risk of keeping up agricultural production with not enough workforce, the Norges Bondelag helped farmers who lost their restaurant direct sales, receive crisis relief funds. As part of the Norwegian government’s crisis package for the small business sector, economic stimulus packages were made available to business owners and farmers as financial support in mitigating the long-term effects of the pandemic.

Dealing with the Continuing Threats of COVID-19

As farmers, farm workers, veterinarians and farm product handlers and purchasers continue to face the threats posed by COVID-19, the Norges Bondelag and health authorities worked together in formulating health and safety guidelines. Health and safety protocols must be adopted and observed in farms and in agricultural manufacturing and processing plants. .

Aside from the hand-washing, fever-checking, face-mask wearing and other routine mitigation measures, farmers and food purchasers were given behavior guidelines when visiting farms and plants. Moreover, every farm has to have an emergency plan, particularly in dealing with cases where the farmer himself becomes infected Such plans include actions to take in alerting visitors and in obtaining a replacement as economic support through a farmworker replacement program.

In the meantime, Norway’s financing institutions stood ready to grant consumer loans, including payday loans called “lan-uten-kredittsjekk” (loans without credit checking) to Norwegians seeking to obtain emergency funds. However, as some unscrupulous lenders took advantage of those who are not familiar with how payday loans worked, providing loan applicants with information became necessary.

We at Långuiden.no (långuiden.no/lan-uten-kredittsjekk/) can help loan applicants find the best Norwegian bank or financial institution that offers the most reasonable interest rate; as well as the most considerate repayment scheme. .

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