Gold will always remain gold, but organic farming performs similarly to gold in investment terms because it is a secure and reliable capital investment. The market for organic agriculture is expanding, as is its influence in the financial sector. What was once a niche market for small farmers has developed into a market force, with some start-ups in the industry becoming significant multi-million, if not multi-billion, dollar businesses. We at Agro Invest Spain are well-versed in the agribusiness sector. As one of Europe’s best agricultural investment companies, Agro Invest Spain cares deeply about issues that may impact the farmland we manage in Spain.

With our incredibly productive almond plantations, we enable our clients to invest in Spain thanks to our depth of Agro invest expertise. Continue reading to find out how investing in almonds might help you profit from the burgeoning organic farming sector and positively contribute to food security while making significant profits.

What is Organic Farming?

Organic farming is a practice that emphasizes the cultivation of plants and the natural breeding of animals. This procedure uses organic components instead of synthetic ones to maintain soil fertility and ecological balance and reduce waste and pollution. In other terms, organic farming refers to a farming technique that forgoes the use of pesticides and fertilizers that have a synthetic base. Genetically engineered species are also not allowed in organic agriculture. 

The Rebirth of Organic Agriculture

Many people became enthusiastic about using chemicals in farming when they saw what they could do. Yields skyrocketed. The soil was healthy at first. Chemical fertilizers hardly ever caused any visible harm. Resistance among pests to the pesticides had not grown. The method was widely adopted since it was thought to have revolutionized agriculture.

Today the switch has flipped, and many people are once more in awe of organic farming. This is because conventional agricultural practices have several drawbacks, including the impact on domestic animals and many health-related illnesses, including cancer and pollution.

The Case for Investing in Organic Farming

The world’s population is expanding rapidly, making it increasingly challenging to ensure food security. Sustainable food production and cultivation are urgently needed. Due to declining profits and unsustainable returns, the Green Revolution and its chemical-based technology are losing popularity. Further unfavorable externalities brought on by using chemicals derived from fossil fuels include pollution and climate change. No matter what we eat, choosing organic food is the best decision you’ll ever make. To do this, you must support organic farming practices and invest in farmland.

The organic approach of investing in farmland is the opposite of the traditional paradigm in that the land gains value over time instead of being exploited and drained by short-term consumers. Composting conditions nourish the soil, creating sustainable farm revenue, raising the land’s value, and enhancing investment returns. In addition, crops grown in organic agriculture sell for double or four times higher than conventional crops because demand for organic products is so strong compared to supply. Therefore, this arrangement is advantageous for farmers and investors.

Is Organic Farming Profitable?

Businesses that offer investments in organic land also demonstrate that sustainable farmland investing is not just a worthwhile enterprise but also a lucrative one. For example, the clients of Agro Invest Spain see double-digit returns, and even the most profit-driven investors should consider investing in a project that protects the environment.

Investing in organic farming is a long-term strategy from all perspectives, but its resilience may be the most alluring one for investors. Organic farms are better positioned to adapt and outperform conventional farming models as they succumb to the restrictions of resource depletion, like weakened soil fertility or issues related to climate change.

Organic food isn’t just for health enthusiasts. It has turned into a successful business for those who made an investment. The organic farming market is currently worth US$43 billion and growing at a 7% annual rate! Furthermore, organic food sales are expected to increase by 50% over the next five years. Sales of organic foods climbed 12.8 percent to $56.5 billion in 2020, a significant rise above the 4.6 percent increase to around $50.1 billion the previous year.

The organic market makes sense when deciding between conventional and organic farming. You and the environment gain health benefits from organic farming, which can also be a financially successful model in the medium to long term. The appeal of organic to agroinvest enthusiasts is one of the most telling markers of success, and most of us have seen the growth of organic in the form of better and more varied products at the grocery store.

The Organic Growth of Farmland Investing 

In the past twenty years, all farmland has increased in value, with prices rising by as high as 287% within five years. About ten years ago, investors became interested in this value growth when the financial crisis allowed major entities like pension funds, university endowments, banks, and Wall Street businesses to purchase farms.

In the US in 2015, public pension funds, endowment funds, foundations, and private pension funds held around 10% of total institutional, agricultural ownership. Institutional investment in farmland has increased to $11.7 billion by October 2020, about five times more than just ten years earlier. Institutional investors had reportedly raised $8.7 billion in farmland funds during the previous five years as of the spring of 2022. However, this trend is broader than just the US, and as valuable arable land becomes available in other countries, individual investors are also deciding to invest in farmland.

Invest in Farmland with Agro Invest Spain

The advantages of converting land to organic farming exceed the startup drawbacks in the long run. If the land can generate organic produce, this significantly impacts the value of farms. Therefore, organic farming is a desirable addition to investment portfolios because strengthening the soil and avoiding using chemical inputs in the production process add intrinsic value to the land and potentially boost the long-term productivity of farms. Agro Invest Spain provides carefully chosen Spanish land for sale for investors looking for sustainable investment alternatives.

You can buy property in Spain through our managed almond farmland; we help our investors by producing only the best quality, environmentally friendly almonds. We are committed to growing healthy crops in tune with nature and avoiding using dangerous synthetic fertilizers and pesticides. As a result, our investors receive substantial returns thanks to our high-quality natural products. Contact our team to join our exciting venture today.

All rights of this content prepared by Api Group Agro Inversiones SL (“API Group”) belong to API Group. These rights are protected and the partial or complete copying, reproduction, distribution, processing or use of the content in any way without permission and without reference will result in legal and criminal liability of individuals.