Agriculture as an Offshore Investment

14 Apr
Brazil rainforest as an offshore investment

Brazil rainforest for an offshore investment

When looking for bullet-proof offshore investment opportunities, there are few choices you can make. Just as in any onshore asset investment, offshore investments are also susceptible to market changes and volatility. Gold is an ever-increasingly popular choice as a near bullet-proof, recession-resistant investment choice, both for onshore investors and offshore alike. But if you’re specifically seeking the advantages of offshore investment and looking for a win-win situation, you’ll probably want to take a keen look at investing in foreign agriculture.

Owning and purchasing offshore property has long been an opportunity investors have taken advantage of, and with good reason. At an economic level, purchasing and owning agricultural property is a pretty safe bet. As the world population continues to expand (some would say ‘explode’), you only need to take a quick look at the food needs for that population – especially in developing countries. Those cultures are going to shift from an agricultural society thriving on grains and vegetables to resource-absorbing meats and proteins. It takes more land, water and grain to raise one pound of beef or poultry than it takes to grow a pound of carrots, rice, corn or any other number of vegetables. Millions of children are being born into emerging countries with rapidly expanding economic conditions and, increasingly, a form of disposable income. Any offshore investor looking at making a land purchase can already see the money growing.

And there really isn’t a substitute, economically, for food. We all need it and the methods of producing it, while they have improved over time, are basically the same. Food prices are very technology resistant as far as reducing the price of crops. With dietary trends in the Western and developed world turning towards all-natural production methods (hormone free, pesticide free crop production), the older organic ways of harvesting make yields slower and less efficient. There is also an emerging trend to use agricultural technology as a way to reduce carbon output, not increase crop production efficiency.

With land prices depressed in many parts of the world, where exactly would anyone interested in an offshore land purchase begin looking? South American farmland, particularly in remote areas, can almost be had for next to nothing. Chile may also be a positive hotspot, especially with a wealth of incredibly rich farmland, large agriculture tax breaks and loose government regulation. But to find the best deals and values, its going to take a boots to the ground approach.

If, perhaps, you aren’t the hands-on type of investor, you can just purchase the property and then lease it to a farmer. It reduces your risks while giving you positive yield results. No matter how you do it, investing in agricultural land outside your country of origin is a very positive way to mitigate your investment risks, enjoy the benefits of tax-reduced legislation, grow and protect your assets and literally reap the advantages of offshore investment diversity. It isn’t totally bullet-proof, but with all signs of the growing world population leading to a significant amount of inflation to food prices, owning farmland may be the best investment you can currently make.

Enhanced by Zemanta

Tags: , , , , ,

No comments yet.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.