WHY YOU SHOULD CONSIDER INVESTING IN THE AGRICULTURAL SECTOR IN NIGERIA

Starting on your path to a  successful investment might seem overwhelming, especially in Nigeria where the first thing that comes to mind when you hear the word ‘investment’ is real estate, stock, mutual funds and bonds. Well, that’s a thing of the past, there are ever-increasing investment opportunities in the agricultural sector and it’s time to open your eyes to the goldmine in the agricultural sector.

In the early days, the agric industry was mainly dominated by farmers and people who were passionate about agriculture. However, it is becoming clearer that investing in agriculture can no longer be overlooked. And there are many reasons you should get informed and invest in agriculture in Nigeria. But in case you are still unclear about the benefits of investing in agriculture, now is the time to let you in on some exciting reasons why you should consider agric-investment opportunities. If you’re ready, let’s get to it.

LESS RISK

There is no investment without risk; let’s just be clear, in case you are thinking that if you invest in agriculture in Nigeria, there is zero risk involved. Some unforeseen circumstances would affect the returns one can get from farming, including erosion, pest invasion, and other issues.

Now, before you get discouraged, remember once again that there is no investment without risks, so unless you have decided not to invest at all, it is something you have to accept.

What is advisable is to know your risk tolerance level, that is, an ability to take a loss, desired investment period and amount of time and effort you are willing to contribute to property or investment.

Basically, know what you can take, know what you are going in for, and know when to pull out.

Having said that, one reason to consider agriculture is that compared to stocks, for instance, agriculture is a low-risk investment because some products are protected by insurance; plus, geography and commodity diversification also reduce certain risks.

MORE SUSTAINABLE

The agricultural sector, as stated earlier, is more sustainable than the stock market because it is not as volatile as the latter. A sector that is stable promises lower risk than one that is unstable – and having an investment in agriculture is one of the most stable investment categories you can find.

While it is not without its risks as stated above, economic depression will hardly stop the nation from eating. Certainly, we all need food. This simply means that agriculture will hardly be affected by economic instability as much as other investment opportunities that rely on the economy’s stability.

Another benefit of agricultural investment is the value of the land, which rarely depreciates.

DEMAND FOR AGRICULTURAL PRODUCTS

The demand for food, clothes or other agricultural products is constant. Agriculture is essential to human existence on earth. I mean, agriculture produces two of the basic needs of man, so investing in an industry or sector that produces two of the most basic needs of man is the best choice. Even with more modernised ways of farming being introduced, agriculture as an industry will always be relevant, so you can get into a long-term investment without fear.

DIVERSIFICATION

Another reason you should consider investing in agriculture is for the sake of diversification. Investment experts will always advise investors to diversify their investment portfolios. That means you should invest your money in different investment opportunities, categories and industries.

The idea behind this is that if one investment fails; you will have others to bank on and you would not have lost all you have on the one that failed. So, even if you are used to investing in stocks or mutual funds, you can definitely invest in agriculture in Nigeria, even if it is for diversifying your portfolio.

MORE AND FREQUENT RETURNS

Certainly, this is dependent on many factors, including the type of commodity, the location of the farm, and more. Nonetheless, farms are likely to yield more and more frequent returns. This is because many crops are usually harvested annually and some are even harvested multiple times a year. So, you can get returns on a short term or long term basis depending on your reason for investment.

FOR THE GREATER GOOD

Investing in Agriculture is for the greater good because you help the farmer keep farming and provide the ever-increasing world population with food while getting returns for your investment.. The satisfaction that you’re part of that is a great motivation to invest in Agriculture. We see it as a win-win situation, one you should definitely consider being a part of.

There’s you have it; the reason why you should consider investing in Agriculture.

If you have decided to invest, you can check our investment opportunities. We’ll love to interact with you and hear your thoughts on Agric investment.