IMPORTANCE OF INVESTMENT IN A FAILING ECONOMY: WHY YOU SHOULD BE THINKING OF AGRICULTURE AS A GOOD INVESTMENT
Let’s start by defining investment. In simple words, to invest means to allocate money in the expectation of some benefit in the future. It is an asset or item acquired with the goal of getting income or appreciation. The benefit gotten from an investment is called a return, which can either be a gain or a loss.
The major mistake we make in this part of the world is equating savings with investment. While saving is simply keeping money to accumulate for future use, investment is putting money to work to get more money that could be used to meet other needs. Saving, according to financial advisors and institutions, is leaving money to waste as it doesn’t gather any return in the end, unlike investment which is simply using money to make more money.
Look at these words from the book, The Richest Man in Babylon;
“Gold in a purse is gratifying to own and satisfieth a miserly soul but earns nothing.
The gold we may retain from our earnings is but a start.
The earnings it will make shall build our fortunes.
Put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to thee income,
A stream of wealth that shall flow constantly into thy purse.”
Getting the picture? Here are a few more reasons why investing is good:
– Ensures both present and future financial security: i.e. the money generated from an investment can be used as present income or accumulated for future use.
– It can boost economic growth: This is possible at the business level using sound investments. i.e. when a company obtains new production equipment to raise the total output of goods within its facility, the increased production can cause the nation’s gross domestic product (GDP) to rise; thus, allowing the economy to grow through increased production.
Bringing it home to agriculture, why should anyone invest in Agriculture?
You will definitely agree with me that agriculture is one of the providers of man’s basic amenities such as food, clothing, shelter, etc. all over the world. We also know that in Nigeria, the agricultural sector is one of the most underdeveloped, under-utilized and poorly financed sector. In fact, as at April 2016, A report from UN’s Food and Agriculture Organization (FAO) stated that over 500,000 people required immediate food assistance in and around Maiduguri and more recently, it was reported by FAO’s Food Security Cluster that the number of people facing acute food insecurity in Borno, Yobe and Adamawa States significantly reduced from 4.7 million (March to May 2017) to 2.6 million (October to December 2017) to 2.3 million (March to May 2018).
Whichever way we want to look at these reports, millions of Nigerians are battling acute starvation and to end this alarming number, the UN states that a profound change in the global food and agriculture system is necessary and also investments in agriculture and sustainable food production systems are crucial to increasing the capacity for agricultural productivity and alleviating the perils of hunger.
The government isn’t going to achieve this alone, which is where you come in, as well as Agrotech companies like Menorah Farms. By investing in agriculture, you are:
- Helping agrotech companies combat and reduce the problem of food insecurity plaguing the nation and preventing the world from future food disaster. In other words, you’re helping to save lives by making more food available in different parts of the nation.
- Creating jobs and tackling the issue of unemployment: With a high level of investment in the agricultural sector, more farmers are empowered to produce better, more people are encouraged to go into food production, there is a massive availability of farm produce for marketers and companies to sell or reproduce and sell. There is also the availability of farm produce for exportation…
- Increasing and improving economic growth: by investing in agriculture which in turn makes more food and farm products available for the nation, the government can export more farm produce to other nations, foreign food companies are encouraged to set up their companies in Nigeria and international trade is strengthened and increased.
- Reducing poverty: you won’t believe the number of evils associated with food scarcity. Food scarcity comes with a high spread of disease, high mortality rate, high crime rate, low condition of living, low participation in education…the list is endless. Investing in agriculture helps to curb all these.
- Making technology and improved machinery available for better yield, faster and shorter planting season, improved harvesting process and better farm produce for consumption.
- Growing your money and wealth and increasing your financial security: You can make passive income simply as an investor or venture fully into the agricultural-related businesses or become an employer of labor, employing and empowering farmers.
I am going to end this article with another quote from The Richest Man in Babylon:
“Every gold piece you save is a slave to work for you.
Every copper it earns is its child that can also earn for you.
Learn to make your treasure work for you.
Make it your slave, make its children and its children’s children work for you.
You do eat the children of your savings; then how do you expect them to work for you? And how can they have children that will also work for you?”
It is not the money saved that will grow into more money. That’s just the beginning. It is the money invested wisely that will yield a return that will grow into your future fortune.
You can visit www.menorahfarms.com to learn more about investment in agriculture.