Consumers would welcome anything that helps keep the weekly grocery prices under control as food prices continue to rise while incomes stagnate.

Farmers, also, have come under increasing pressure from volatile prices for their crops, the efforts of suppliers to keep prices low in the shops and the increasingly uncertain global weather.

At the same time they are asked to farm sustainably to protect the environment, produce more natural, chemical free food and equally to improve the yield from their land to meet the food needs of a larger global population.

In the UK, some East Anglian organic grain farmers have recently joined together in a contract with a company that needed a regular supply of food for its organically-reared pigs.

As one farmer said, it is very difficult to assess the market supply and demand particularly in the organic market and the arrangement they reached had several benefits.

It meant both buyer and sellers were no longer susceptible to the vagaries of the market and to stablise the prices right through to the retailer and share the costs. It also made it possible to make the whole supply chain from land to pig meat traceable and to reduce the carbon footprint by supplying to a local buyer.

It worked because all those involved knew each other and were in the same area, but there is no reason why the model could not be used by other farmers both in the UK and overseas.

Research in East Agnlia is also being carried out to identify the different genetic characteristics in various grain seeds. The aim is to find those that are better for growing in an area of increasing drought and are better protected against the new plant diseases that might arise. Cross breeding, for example, could then be used to produce a resilient variety suited to the local climate.

Other research that has been going on, mainly in the USA has been in providing better crop and land protection in a more natural way, as a substitute for the many now-discredited older generation of chemical fertilisers.

The range of innovations includes biopesticides, biofungicides and yield enhancers that are developed from natural sources and leave minimal residues in the land and in the crop. They will also help farmers to meet the growing demand for natural foods with less waste and less loss of the nutrition in their land

These new low-chem agricultural products are subject to careful testing and licensing before they are allowed onto the market and this can be an expensive and lengthy process, taking up to eight years in some cases because regulation is not yet standardised across individual countries, so they may need to be licensed separately in several places.

There are signs, however, that more effort is being put into innovation in the various aspects of food production to respond to the concerns of consumers on both price and food quality.

Copyright (c) 2011 Alison Withers

Getting the most effective agriculture investment is usually tricky for the inexperienced investor with small or no expertise in the sector but you can find obviously quite a few unique possibilities obtainable which includes agriculture investment funds, direct agricultural land investment and acquiring equities in agricultural providers. Within this report I’ll go some approach to investigating the unique alternatives the hazards they present to investors the mechanics of how each and every sort of agriculture investment functions along with the returns which might be presently getting accomplished.

Firstly we’ll take a look at the relevance of agriculture investment for the present financial climate and regardless of whether this unique sector shows us the indicators of becoming capable to produce growth and earnings.

The present Financial Climate

The worldwide economic climate continues to be within a state of turmoil and also the UK in distinct is cutting back public spending to cut back an unmanageable national debt the population is increasing and quantitative easing is probably to lead us into a period of extended inflation. Also the lack of financial visibility implies that it’s extremely tough to worth assets like stocks and rates of interest getting so low implies that our money deposits aren’t producing any tangible earnings to speak of.

So what does this imply for investors? It implies that we have to acquire assets which have a good correlation with inflation i.e. they go up in worth faster than the rate of inflation these assets ought to also produce an revenue to replace the revenue we’ve lost from money and lastly any asset that we obtain need to also possess a powerful and measurable track record.

It is actually pretty clear that agriculture investment particularly investing in agricultural land displays the characteristics of growth earnings a good correlation with inflation is simple to worth and features a clear and evident track record to analyze and as such agriculture investment ticks all the relevant boxes to possibly develop into the excellent asset class for investors these days.

Agriculture Investment Fundamentals

The fundamentals supporting agriculture investment are fairly simple to measure; because the worldwide population grows we have to have far more food to create additional food we need to have far more agricultural land as this can be the resource that gives all the grain and cereals that we consume and all the space to graze the livestock that finish up on our plate. So we’re coping with an incredibly fundamental query of provide and demand if demand increases and provide cannot maintain up the worth in the underlying asset increases so let’s take a look at a number of the crucial indicators of provide and demand for agriculture investment.

So the fundamentals supporting agriculture investment are sound and extremely obviously demonstrate a superb image for prospective investment. But can we absorb price tag inflation? Effectively you can find a myriad of reports that inform us really obviously that as a population we absorb increases in food costs pretty much 100% and sacrifice spending in other regions so yes we are able to.

To speak about threat for any moment the threat involved with this fund based investment technique is the fact that you give more than manage to a fund manager who will invest your funds for you personally and obtain assets that he or she believes are relevant. Also if 1 fund performs badly that typically features a knock on impact for other agriculture investment funds as self-confidence within this certain method requires a hot it is possible to thus shed worth by means of no fault of one’s personal. You also must spend a fund management fee consuming into your earnings.

When it comes to the returns 1 can count on from a fund this varies wildly but most project annual returns of about 10% while this can differ based on a complete host of aspects like the fund management investment method and common industry circumstances.