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.

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

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.

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.

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.

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.

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