Investors should go for US farming
Expected growth of the revenue of American farms, their value and favorable liabilities/assets ratio are among factors indicating profitability of investing in US agriculture.
Net revenue of farmers in 2013 is estimated at over 120 billion USD. Such result is a record high, especially seeing how severe the 2012 drought had been. Investors may grow even more interested witnessing the expected growth of farm assets by 7%, which are to reach a record total of 3 billion USD. Liabilities to assets ratio is forecast to fall and reach 10.2%, or the lowest value in half a century!
Sources of the success
American citizens have started to pay more and more attention to using healthy food while cooking. New trends in nutrition have triggered a boom for organic farming, the fastest-growing sector in agriculture, whose successes cannot be underestimated. Global growth of the proportion of middle class in developing societies, ongoing transformation of the eating habits and import of food from developed countries are the factors behind the prosperity of farming in such countries as the USA. This year the country’s total agricultural export is estimated at 142 billion USD, while the foreign trade surplus reached 32 billion USD in 2012.
Investors who are looking for new directions of development need look no further than the USA, whose farming sector is booming. Should the upward trend continue, operating on US market may prove to be the best choice. There are no reasons to fear that American agriculture will become less attractive for investors seeing that US population is large and constantly growing, while consumers abroad are increasingly favorable towards food from this country.