What are the future prospects of farming?

If you have an involvement or association with farming you’d know that it’s been very difficult over the last 20 years or more contending with rising costs, relatively stagnant commodity prices and the vagaries of seasonal conditions. For all these disadvantages, this has made the industry survivors become far more efficient and adaptable.  We’d have to agree that this has been a positive outcome for the industry.

Is it possible that the tide has turned and farming is entering a purple patch?

Julian Cribb, author of The Coming Famine, provides compelling research and evidence to suggest this is so. I’ll highlight some of the facts he presents.

The global population and food demand are together rising at about 2% per year, whereas food output is increasing at only 1 to 1.5% per year.

  • The global requirements for food by 2050 will be 70 to 100% greater than today.
  • 25% of all land is now so degraded that it is scarcely capable of yielding food.
  • Mass migration of farmers, particularly within Asia, to cities has resulted in many countries now becoming net importers of food.

Our global population has grown from 3 billion in 1960 7 billion today.

When you consider these facts (and there are many more) it indicates that we are headed for major global food shortages.  This is why we believe that the financial prospects of farmers are generally looking far more promising. This last season was a good example of appreciably higher grain commodity prices even with an unfavourable Australian exchange rate.  This is not suggesting it will be all smooth sailing from here but the trend is clear.

For those that see a future in farming, perhaps this is a good time to evaluate your business and look how to benefit from this trend.

We are financial advisers who have an affinity with country people, based on over 20 years’ experience working and supporting farming families and small business operators.  We are passionately committed to helping these people be motivated to achieving the things that are most important to them.

We regularly come to Wudinna  or can be contacted on 8333 0790 or by email: info@planningforprosperity.com.au

Bob Budreika is an Authorised Representative of Gold Financial Pty Ltd ABN 50 113 653 946, AFS Licensee 291389.

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