With inflation at its peak in several countries, you would consider saving money and earning more. In such a scenario, you would even want to secure your future, and hence a long-term investment helps. You would have heard about how China is the chief importer of crops, and Pakistan has high prices of food grains and vegetables, which implies a high demand for farm produce. You would be thinking of investing in it, so let’s explore the world of Farmland Investments with Axba!
What is Farmland Investment?
Farmland investments, as the name implies, refer to investments in the agricultural sector. These are variable, from buying agricultural land and leasing/renting it or investing in alternative investment companies which work in farmland.
The sole purpose of Farmland investments is to fetch a profitable income, capital appreciation, and higher ROI through the agricultural industry. These also include things like buying land for agricultural purposes, renting them to farmers and investing in agro funds/partnerships, or purchasing a stake in farmland companies.
It’s like any other farmland investment but is more reliable than investing in stocks, gold, diamonds, commercial/residential property, cryptocurrency, and NFTs. These assets have a drawback as inflation affects their ROI negatively. In contrast, investing in Farmland boosts ROI even in case of inflation. Besides, the need and demand for food will never decrease.
Furthermore, Malthus’s theory states that population increases geometrically while food and other resources increase arithmetically. So, in today’s world of population explosion, the demand is more than supply.
It often becomes difficult to deal with the farmers directly or buy land for leasing/renting it to farmers. Here’s where firms come into the picture: they use your funds to invest for agricultural purposes like increasing productivity, advancing work processes with machinery, and similar purposes. So, let’s dig deeper into how these work!
What are the Benefits of Farmland Investments?
There are multiple reasons to believe that Farmland Investments is a legit thing and a reliable one. But what makes it worth investing in it? What are the elements it offers?
Let’s dig into the details!
- Investing in Arable Land is Profitable: Arable land is suitable for cultivation, plowing, and growing crops capable of agriculture. However, due to increased concrete jungles (urbanization), the amount of arable land has decreased. Further, current climate changes have led to limited Arable land. Thus buying one would be profitable as its value tends to increase due to higher demand and low supply.
- High Demand: No human can live without food. Besides, with the increased living standards, the need for non-adulterated foods, a protein-rich diet, superior quality harvest, and even organic foods have increased. All of these need a structured farming approach and better practices. Since no one can live without food, thus its demand is high.
- More ROI: Since arable land is limited, the demand is much more than the supply. Hence, it promises a better ROI. Investing in farmland is mediated, which further manages farm practices. With better profits and risk management, you can get better ROI even in this way.
- Stable Investment: Whether rich or poor, everyone needs food and hence the need for crop cultivation. Besides, this bear market volatility makes it durable and safe.
- Emerging Markets: Developed countries import agricultural products from other countries or have low arable land increasing the need for farm products. Moreover, developing nations rely hugely on agriculture and use it as the prime source to improve economic conditions.
- Flexible Investments: Farmland investments can be in multiple arenas. These range from buying shares in a farmland company or buying land. Thus, you can tailor your investments as per your budget.
- Inflation Hedge: Conventional and crypto investments tend to face a downfall amidst inflation. However, farmland investments hedge against inflation as their demand in such a crisis increases. Moreover, there is no time when agricultural needs are null. Be it cotton, food crops, rice, or pulses, everything is required in abundant quantities. Hence, the market never remains stagnant, making it and Farmland investments beneficial.
All these reasons prove that their market never faces decline, and amidst a crisis, its demand and, thus, ROI increases.
What is Axba’s Approach to Farmland Investments?
Axba, the famous firm for alternative investments, specializes in Farmland Investments. The good part is that you must merely invest in Farmland and the firm’s expert team, which further manages your assets in the right place. They ensure to minimize risks for better returns.
With increased demand, other firms invest in agriculture only considering the profits. However, Axba ensures sustainable agricultural practices. They intend to ensure that the environment and overall fertility of the land don’t get affected due to poor practices. If it happens, then high-quality crops won’t be yielded, leading to a loss. Hence, Axba here is an intelligent game-changer.
It’s an alternative-investment firm whose is personnel expert in their work. Similarly, for farmland investments, they also have a team of agricultural professionals who conduct thorough research. So they can be sure before investing their funds in different products. Thus, Axba optimizes the productivity and profitability of the farmland while minimizing risk.
How Does Axba’s Farmland Investments Work?
Axba’s team follows an innovative approach to Farmland investments. Yet, you would be wondering how these work.
It focuses on two core values of Value Creation and Risk Management; let’s check out both!
- Value Creation: Axba tends to provide you with returns using minimal funds. Yes, you got that right! Their expert team looks after the more undervalued yet arable land for agriculture. Further, they utilize sustainable practices, and their expertise mediates investments at the correct place. The people utilizing your funds will use it as capital for their needs. It maximizes Farm productivity. Till then, you will get your stakes in the company. Later after yielding suitable profits, they would accordingly manage it. So, you can keep your investments long-term and generate a steady income. This will, in turn, provide a good capital appreciation also.
- Risk Management: Whether it be climatic conditions, destruction of the harvest, and such things are a threat to agriculture. Axba carefully assesses the risk and prepares mitigation strategies, and accordingly, there are lower chances of crop destruction. Even if it occurs, it has insurance coverage, so your returns aren’t affected.
With a sustainable approach, dedicated research team, value creation, and risk management, Axba has succeeded in Farmland Investments. Some of the chief examples include when it acquired a 2600-acre farm in Florida in 2018 for USD 1.1 million and whose net income has increased by 67%.
Where do Axba Successful Farmland Investments Occur?
Apart from buying farms, Hendonova has also invested in irrigation facilities, raising the provision of farming technology and conserving soil. Yes, soil is the most essential resource for farming, yet it takes many years for a 1.5mm layer of soil to form. Hence, arable land is less, and so is soil. Even the existing soil isn’t necessarily fertile, and investing in soil conservation is an innovative approach to secure the future.
The demand for soil is also skyrocketing. Thus, it’s apparent that Axba’s farmland investments aren’t confined to land but to operational excellence. So, till then, you would get the company’s stakes which you can later sell as per your expected profits.
Final Thoughts
If you thought about exploring the world of Farmland investments with Axba, you would have got your answer! These tend to hold your long-term investments and yield significant returns. The benefits of investing in Farmland investments include investing in profitable arable lands, high demand, increased ROI, and a hedge over inflation
What makes Axba the best is its good grip over undervalued land, using its operational expertise and research team to maximize productivity. Its dedicated team also focuses on mitigating risks, making it a good investment.
