InvestorsHub Logo

Pro-Life

10/04/15 6:15 PM

#244 RE: Pro-Life #243

Peak Food 3: Island Earth
By: Ned W. Schmidt | Tue, Sep 29, 2015

http://www.safehaven.com/article/39077/peak-food-3-island-earth

Implications of this situation should not be minimized, or dismissed. Growth in global food production is the product of percentage change in agricultural acreage times the increase of per acre production, or productivity growth. If global agricultural acreage is not expanding, the only source of increased food production is through an increase in productivity per acre.
If the size of the agricultural land on Earth has indeed reached a limit, at a minimum for the life span of most investors, then several implications are discernable. First, quite obviouslyAgri-Land values should rise over time, subject to short-term cycles. Second, as consumption of food rises due to increasing demand from China, Asia-Pacific region, and India. prices for Agri-Foods will increase over time. Thirds, those businesses, Agri-Equities, that create and sell technology and/or services to increase productivity of Agri-Land and farmers will benefit from a rising revenue stream. Investors participating in these areas should be well rewarded.


There is more with charts at the link above...