6 Things to Know about Sustainable Agriculture

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Sustainable agriculture is one of those field that’s not on everyone’s radar and it should be at least when it comes to investing and business opportunities. It is a niche market, but there’s nothing wrong with being a niche market from the point of view of an investor and it has a chance of growing.

As is the case with any investment you plan to get into, you’ll need to familiarize yourself with the field as much as you can from both the perspective of the finances and the work itself.

Workforce

At this point 40 percent of the word workforce works in agriculture. That means that you can tap into that workforce when creating sustainable agriculture businesses. Chances are that those who work in traditional agriculture will be the first to move to the new and exciting but related field of work.

Have in mind that once there’s an increase in the investments in this industry the workforce may drop instead of rise, since there will be more machinery and technology coming into the field. The production will grow even when the workforce changes and becomes smaller.

Politics and society

There are reasons to invest in sustainable agriculture that go beyond market and profit successes. These will soon become even more important since a large corporation needs to think beyond profits and see itself as a driving force behind the change in society at large.

Sustainable agriculture will have an impact on the environment making food production less damaging to the environment overall. It will also have an impact on social equality because it can provide healthy and sustainable food to more people than have it now.  Beyond that, the industry is rather profitable as well.

Less investing

Agriculture requires quite a lot of investing. This is the case for most businesses, but a problem with agriculture is that after the initial investing there’s a lot more to handle. The business works in phases and seasons and that means you’ll need to keep investing every year.

This is the case with traditional agriculture and that’s why there’s so much potential in sustainable agriculture. There’s much less investing because there’s much less machinery and chemicals used in these cases. That’s something you need to take into account and that’s where why you need to calculate your potential expenses in advance.

Labor and productivity

Sustainable agriculture farms require 2.5 more work on the same space as traditional farms. That’s a big problem and that’s why some shy away from the business. If it’s a small family operated farm you’ll need to put in much more work or accept that there will be less produce. If it’s a large farm with a lot of work to do, you’ll need to hire more employees.

At the same time, a property of the same size will produce ten times more profit than a traditional farm would. This makes the additional labor worth it.

Competition

There’s a lot of competition in this field of work. It’s not coming from other sustainable farms since those are a niche market. The competition will come from traditional farms since they will see this industry as a treat to their own and with good reason. The share of the market held by sustainable farms has grown each year for a decade now.

At the same time, the amount of pesticide and the percentage of genetically modified crops grows each year as well, which means people will step away from traditional farms in the years to come.

The effect on soil

There’s an additional issue in regards to the soil when it comes to sustainable farms. The soil is the most important investment you need to make when you’re starting such a business and that’s something you need to treat as carefully as any other investment. Every once in a while traditional farm will have to leave their soil empty so that they can regenerate it.

This isn’t the case for sustainable farms since they damage the soil much less and you could keep using the same land for a much longer period of time.

Conclusion

Sustainable farms are the future of agriculture. They are more eco-friendly, they provide more job opportunities and they can make quite a lot of money. This is why you should try to learn about the industry and in the end, invest in it. It will end up being profitable for years to come.

There are at this point quite a lot of workers in this industry and they will move to the more sustainable type of work. Their number will drop in the years to come as there’s more investing and more work in this field. The land is the biggest investment in it, but it can be used for a longer time.

 

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