5 Reasons to Invest in Agri-Tech

Necessity is the mother of invention

Never has there been a more accurate statement for the current state of the agriculture sector. Rapid population growth, sporadic climate change, depleting resources and arable land, exclusive economic growth, and so on have ultimately lead us to the era of Ag-tech, the use of technology in agriculture to improve efficiency, profitability, and well-being. In order to tackle these challenges, innovation and technology are essential, necessary, inevitable, really any adjective that emphasizes the dire need for technological intervention to secure a planet for future generations. Investors worldwide are paying a considerable amount of attention to Ag-tech as it becomes clear where the future is headed. It’s agriculture’s time to shine in the financial arena and here are a few reasons why you should pay close attention as you position your portfolio.

Food. Investing in agriculture is investing in food. One way or another, your financial contribution to the agricultural sector will influence food, whether it’s production, security, trade, etc. It’s safe to say that food has always been necessary for mankind but never has it been so, well, relevant. And, no, we don’t mean food blogging.

You’ve heard it once and you’ll hear it again: food security. The world consumes, on average, 2,600 bushels of grain crop per second, that’s almost double what we ate in 1974. That amount could easily double to 5,200 bushels per second over the next 20 years. By 2050, the world population is expected to reach 9.7 billion and will require 70% more protein than is currently available. This means many more mouths to feed, which is unquestionably a growing priority among developed and developing countries. As it stands, traditional agricultural methods will not sustain the growing population. Innovators worldwide have begun to develop effective technology for finding ways to not only produce enough food but quality goods as well. NewLeaf Symbiotics, one of the many Ag-tech startups turning heads this year for their groundbreaking research, combine bacteria and seeds in order to generate higher yields and healthier produce. Simple economics show us that, with food security increasingly becoming an an international