Wednesday, November 25, 2009

Google On Forestry Watch

“Green enthusiasts” worldwide are to be offered the opportunity to play game keeper and monitor satellite images of rainforests and report any illegal logging.

Satellite images will be frequently updated and anyone with internet access will be able to make instant comparisons with older images and identify destruction of rainforest almost immediately.

The green detectives will then be able to report the illegal deforestation to an international agency being created to monitor whether countries are meeting their commitments to reduce deforestation. Any state found to have broken its pledge will lose its share of a new global fund established by rich countries to pay nations for leaving their trees standing. Read more.

Agribusiness Investment

Agricultural investment - Plugging the Supply Gap

Agriculture is hot right now and the focus is Africa. Countries and companies are setting up shop all over the continent to grow crops.

Due to economic expansion in China and India amongst others, there has been an increase in the demand for food. The trend -which has caused food price inflation in the last three years-, is expected to continue in tandem with economic growth. This therefore means that the supply gap must be plugged, and to investors this presents itself as a good opportunity to make money. For governments on the other hand, food security is crucial because high food prices leads to political instability amongst others.

Africa right now has comparative advantage in Agricultural production. Comparative advantage means given a nation’s resources, you are the lowest cost and therefore most efficient producer of a product in this case, it is crops for Africa. According to the Food and Agriculture Organization (FAO) only 14% of the continents 184 million hectares of arable land is under cultivation. Agriculture also accounts for 17% of GDP and 57% employment. This represents underutilization of resources or to put it in another way, virgin territory.

This is immensely attractive, in terms of returns to capital. In a global capital market, capital will flow to any part of the world where it is guaranteed highest returns. Right now at least for Agriculture that place is Africa. That is why funds are flowing to Africa not Russia, Brazil or the USA, which are large countries with developed agricultural sectors. This is also like outsourcing where production will move to the lowest cost producer.

Africa has absolute advantage in the production of certain crops - like coffee from East African for instance. Land and labour is relatively cheap when compared to the rest of the world. This is largely due to underutilization of resources. Other factors include fertile and varied soil to grow different kinds of crop. Governments in Africa are inclined to participate to boost domestic production and economic growth in their respective countries. Historically Africa has been ‘the continent’ for agriculture the first farming implements, irrigation and technology was invented in Africa by Africans. Slaves from some parts of West Africa were taken to North America because of their expertise in Agriculture. Read more.

Agribusiness Investment

Wednesday, November 4, 2009

Agricultural Market

Raising cattle for the agricultural market is one of the largest industries found within the commodities market and one which comes with distinct rewards and challenges. Whether it be a small scale ranch run by several generations of family members or a huge commercial cattle enterprise there are several aspects of cattle ranching you will find necessary to understand prior to venturing into this field.

you will raise will determine the type of ranch that you will operate. Some cattle such as Angus cattle are particularly prized for both their bloodlines as well as their end products. Breeding Angus cattle is one of the most rewarding types of farming that you can find in terms of monetary value. Raising other breeds of cattle particularly if you operate a commercial undertaking can also prove to be a great means of living.

operate on the premise of providing these fine animals for both food and breeding purposes. Taking care of your cattle is the most important aspect of cattle ranching if you are in the business for breeding your cattle. You will require plenty of quality green pasture land which grows a diverse variety of grasses and grains as well as the necessary time to monitor your cattle on a regular basis. Read more.

Agribusiness Investment

Monday, October 26, 2009

Financial Retirement Planning

From the point of view of farm estate planners, financial retirement planning requires a concrete strategic and savings plan. In more traditional businesses employees and owners often use an IRA, 401K or other type of investment. When it comes to farmers and agribusiness owners the answer to the questions, how much do you need to save and where will it come from, brings different answers.

For employees of traditional businesses the options often include stocks. bonds, mutual funds etc. that are in no way connected to the farm business itself.

When it comes to farmers facing the financial retirement planning issue their historical perspective results in quite different actions - because their assets are almost all tied up directly or indirectly in the farm. Sure, they need a team of professionals to assist them, but they must be a team that understands the reality that there really is no savings outside the farm business itself.

And if you have made good investments over the years or your farm business has grown in value and have a large net worth, you may also need to plan for trusts and estates for your children, grandchildren or other beneficiaries. Professional financial planners can help. A lawyer is necessary for drawing up trusts and estates. Accountants can provide some information. Basically, you need a team. These are some of the things they will help you figure out.

First, you need to identify who relies on your income, besides yourself. Then, you need to look at how much money it will take to continue to enjoy the lifestyle to which you and your dependents have become accustomed. Unless you want to cut back on your expenses, your goal should be to save enough to allow for annual withdrawals equivalent to or greater than your current earnings.

One of the challenges for financial retirement planning is that no one really knows what will happen in the future. We must assume that the cost of living will increase, as time goes by. The average inflation rate that we normally accept is 3% - what if it's more, a lot more, or less? Read more.

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Sunday, October 11, 2009

Inquiry into aspects of agribusiness managed investment schemes

Read the full text of Inquiry into aspects of agribusiness managed investment schemes

Having regard to the recent collapses of Timbercorp and Great Southern, the Committee inquired into and reported on agribusiness managed investment schemes (MIS), with particular reference to:


1. business models and scheme structures of MIS;
2. the impact of past and present taxation treatments and rulings related to MIS;
3. any conflicts of interest for the board members and other directors;
4. commissions, fees and other remuneration paid to marketers, distributors, related entities and sellers of MIS to investors (including accountants and financial advisers);
5. the accuracy of promotional material for MIS, particularly information relating to claimed benefits and returns (including carbon offsets);
6. the range of individuals and organisations involved with the schemes, including the holders of the relevant Australian Financial Services Licence;
7. the level of consumer education and understanding of these schemes;
8. the performance of the schemes;
9. the factors underlying the recent scheme collapses;
10. the projected returns and supporting information, including assumptions on product price and demand;
11. the impact of MIS on other related markets; and
12. the need for any legislative or regulatory change.

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Monday, September 14, 2009

Investing in Aquaculture for Food Security

Food security clearly is more than just food production, nutrition, or food aid. Alleviating hunger, a severe manifestation of poverty, depends in the long run on sustainable and broad-based economic growth and income generation. In many poor countries, these depend on a productive, competitive, and sustainable agricultural sector. To achieve these conditions, countries must invest in rural areas to strengthen agriculture, aquaculture, the food system, and infrastructure, and to restore and conserve critical natural resources for agricultural production. This requires both public and private investment - domestic and foreign.

However, this is not enough. All sectors of civil society must work together if we are to succeed in our objective to achieve food for all. Investing in agriculture and aquaculture for food security means that grassroots and local efforts together with government, the private sector, multilateral and bilateral efforts at national level should all be focused on a common vision and agenda for food security. Food security is defined as: all people, at all times, having the physical, social and economic access to sufficient, safe and nutritious food in order to meet their dietary needs and food preferences for an active and healthy life (World Food Summit Plan of Action 1996)

Aquaculture can contribute to improved food security and nutrition through various channels: local food supplies can be improved through the increased availability of low-cost fish; employment opportunities and incomes can be raised; and consumption of fish can be increased directly. Read more..

Investment In Agriculture
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Strategic Investment In Agriculture

The procedure of investment in land that awaits future urban development has been carried out for generations by both big businesses and private investors. For several it has been a gainful venture, resulting in many folks gathering large land portfolios and substantial amounts of wealth. Mainly, this investment has taken place in agricultural plots surrounding towns, villages and cities as these are seen as ripe for development as settlements expand. This type of investment has recently been opened up to the masses with many companies offering chances to unite funds for part ownership of land.

The chances to harvest large financial rewards from land investment are great. In some cases it is not even required to offer a large financial inoculation, part ownership schemes have allowed investors to begin investment in land for as little as fifty pounds, paid on a weekly basis. As a result investors differ from those attempting to build up a retirement nest egg to those struggling to get on the possessions stepladder.

In terms of the rewards some estimates consider that an investment of twelve thousand pounds could lead to a return of more than fifty. This will take about ten years but when compared to other investment opportunities the returns are excessive; obviously however, as with most investments the greater the risk, the higher the profits. As a result, those allowing for buying land should always research a number of companies carefully as an approach without intimate knowledge can be seen as foolish. This appraisal should include an appraisal of a company's credibility and past history in giving investors honest returns.

In the media the land investment business has not received the best of press in recent years. There are still a large number of companies out there that is measured trustworthy; all it takes is a little effort in researching the industry to find them. Once this research has been carried out, the returns from share purchasing can obtained quickly.

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Source: Ezinearticles