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Why Investing in an Organic Farm is Profitable

Why Investing in an Organic Farm is Profitable

 

The organic farming industry is one the fastest growing industries around the world. People who now know about the disadvantages of eating chemically treated foods are converting to the traditionally grown vegetables and fruits. Inorganic farming is not just harmful to the consumers; it is also adversely affecting the environment. This is because the non-organic growth of food does not allow the soil to naturally rehabilitate to grow food. Hence, more artificial fertilizers and pesticides are used, and the food grown out of those chemicals is highly toxic. Environmentalists are fighting hard to take a stand on farms like these to drop these unnatural methods and instead adopt the natural way of planting and growing crops.

On the contrary, the organic food industry seems to be grabbing everyone’s attention. Organically grown food is more expensive, sometimes as much as twice the price of inorganic food. Nevertheless, the industry has seen a rise in business and the market is growing at about 15 percent per year, in sharp contrast to the overall growth of food market which is only 3 percent per year. An even more interesting fact is that people are looking for online sources to purchase their daily foods instead of going to the farmer’s market.
Rising food prices and the growing demand for biofuel oil has attracted investors into investing in organic farms. A whole variety of investors wants to marginalize their profits by putting their money in this desirable market sector. Hedge funds, pension funds, private equity and much more have been involved to benefit from the farming business. Be it the organic meat industry, organic dairy or the organic crop industry, you will find a growing market for any of these produces.

Judy Lessler is an owner of Harland’s Creek Farm in Pittsboro, in North Carolina. She and other farmers in her community have had difficulties making a sale to the local subscribers. The farmers take advantage of the Community-Supported Agriculture (CSA) model to reach customers early in the year. These customers subscribe and pay early in the year which gives way to the farmers to have enough money to grow and maintain their crops. When the crop is ready for harvest it is delivered to the customers who had subscribed for the foods.

United Natural Food (UFNI) is one of the top distribution companies for natural and organic foods. It supplies its produce to major supermarkets and has built a trusted name for itself. Its sales have recently gained momentum and are expected to have a steady growth rate. Any stock broker looking to double the amount invested with a few years may look into buying its shares.

Similarly, Iroquois Valley farms are a finance company, which owns several private farmlands. It purchases the property and then leases out to the interested people to farm the land in an organic way. It owns a total of 30 organic farms which are spread all across the USA. This company typically encourages organic farming and does not in any way promote inorganic and artificial methods. This is why it only accepts applicants looking to run their farm in an organic way. The investors can buy in shares and reap the profits until their investment limit lasts. The land can then be sold to another potential buyer for the current land value.

Sprouts Farmers Market has been dubbed as having the best growth rates in the retail world. It has had great progress in the market and has enhanced its weekly sales average from $32 to $35. Although, as of now its sales are $17 million annually, but statistics point to the fact that if the company continues to grow steadily it can be $20 million yearly in the next 4 years. Any investor looking to gain higher profits and investing in a growing company can look to invest in this ever-growing business which has the really high potential of giving back to its investors.

Inorganic farming has become a business since the idea of artificially grown crops was put into practice. It is only a matter of time that the organic farming sector will see a rush of prospects from businesses hoping to buy a share in this part of the business. Organic farming’s main features are “natural” and “health” which is why it can be seen as a business that will only attract more consumers and more profit with the passage of time.





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