7 Charms That Make Agriculture Business So Attractive Investment
During the pandemic, rice fields and poultry farms are the most reliable lifesavers for my family.
During the pandemics, millions of people have lost their jobs. International Labour Organization (ILO) mentions that in 2020, we lost global working hours equivalent to 255 million full-time jobs. That is approximately four times greater than during the global financial crisis in 2009.
Those undesirable accidents were spreading among any business. Accommodation and food service activities, as the highest risked, were lost by 30% working hours. On the other hand, the agriculture, forestry, and fishery sectors are low threatened by losing 3% working hours.
My family and I experienced it ourselves. My family has been running businesses in retail, construction, and agriculture. In pandemic years, our retail and construction businesses were declining. We were grateful that we still have an agriculture business as a lifesaver. While retail and construction were suffering a loss, our agricultural industry, which includes rice fields and chicken farming was stood still with a stable profit.
As a practitioner in Agri-Tech Start-Up, I know well how the agricultural sector survives and develops during these pandemic years. Instead of losing sales, our company booked more than 600 % revenue in 2020. We were also expanding by building several new high-end facilities.
“Agriculture is our wisest pursuit, because it will in the end contribute most to real wealth, good morals & happiness.” — Thomas Jefferson, 3rd President of US
If you would like to invest, I strongly recommend you to choose the agricultural sector. Besides those experiences, here are some attractive charms of agriculture sector investment.
#1. Agricultural Products Are Always in Demand
Demand for most farm products is inelastic. It means that even if the price of agricultural products is dropping or increasing, customers' demand wouldn’t be change a lot.
Under yesteryears circumstances, it is not a good condition for farmers. Inelastic demand potentially decreasing market absorption of farm products, especially in the harvest moons, when the supply is skyrocketing. However, since our current technologies are much better now, it is possible to determine when to plant and harvest. So that will never be over-production on the farm products.
During pandemic circumstances, agricultural products have higher demand. Since everyone wants to be healthier, they won’t mind spending more money on fresh and better agricultural yields.
#2. Giving a Stable Income
It is strongly related to the first point above in supply and demand. People will always need agricultural products as long as people are alive and need to eat.
For Restaurant, retail, or service business, We can substitute their products easily. For example, during this pandemic moment, when we are forced to stay at home. We are okay without restaurant foods' delicacy, but our basic needs for foods don’t change. That is why people will always need agricultural products, and a stable income for all stakeholders is guaranteed.
#3. High Level of Capital Security
Whenever investing in any business, stocks, or even cryptocurrency, there must be a risk of losing our capital. However, in the agricultural industry, that risk is a minimum value.
We could say that the agricultural sector has a high level of capital security. Agricultural businesses must have intrinsic assets, e.g., the field for farming, equipment, and of course, the products. In the worst-case scenario, those assets have a value to replace the investment.
#4. Precise and Adjustable Time Frame
Managing the agriculture business is not easy. However, it can be calculated by deterministic data and calculations.
#5. Highly Contributing for Society Employment
This point focusing is not only on personal interests. By investing more in the agriculture business, means larger fields, farms, etc. And of course, there will be more workforce needed. In this case, your investment will also increase society's employment.
Even without any related experience, my family was building a poultry farm to increase our neighborhood's prosperity by making more job vacancies there. Our poultry farm has 20 thousand chickens, and they can be cultivated once per two months period. Four people are working in daily operations, and we will hire more during cultivation and preparation periods.
#6. Refresh Our Body and Soul
Having a piece of field or farm can help our sanity. When we are overwhelmed by office works and stress, just staying on the farm could help us recover. This kind of luxury is restricted to direct business actors.
#7. Potentially Provide Us Enormous Wealthness
Besides being stable in product demand and income, the agricultural business could provide us with enormous wealth. Of course, a lot of processes and efforts are necessary. In Indonesia, there are so many conglomerates with a background in the agricultural business.
