Hi Everyone,
I hope you all had a fantastic Fourth of July. The fireworks show at Gainey/Scottsdale was spectacular and so was the BBQ. My hope for all of us in July is that those were the only fireworks we’ll see. Right now, we have a great start to the second half of 2011 and it will be interesting to see if investors will maintain last week’s confidence. If they’re into farming, chances are they will.
~Susan
Fireworks on the Farm
“Want to Make More Than a Banker?” is the title of an article written by Stephen Gandel in the July 11, 2011 issue of Time magazine. In it, he explains why the farming sector is poised to potentially be a leading growth area. Investors could benefit from understanding what is changing in this area.
Emerging market growth in terms of wealth and hunger have skyrocketed.
Biofuels and demand for them have been booming.
Real estate prices for farmland keep rising while others fall.
Manufacturers of combine harvesters, storage bins and others are operating at full capacity and hiring workers.
Farmers likely to reinvest profits into areas that solidify continued use of their crops such as biodegradable plastics.
Experts are divided on the long-term prospects and fear that rising interest rates and improvement in the broader economy may rain on the farmer’s parade while some say that “the rising demand for food in Asia and elsewhere will mean that crop prices will stay high even after the economy improves.” Right now, it’s hard to argue with the fact that national unemployment is at 9.1% with farm rich Nebraska down at 4.1%.
To have a discussion on proper ways to incorporate this trend into your investment portfolio in hopes of bringing some fireworks to your farm, please schedule an appointment.
Until next week,
Susan R. Linkous
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