Agriculture: Bubble or Long-Term Investment Opportunity?
Representatives from Telvent DTN discuss the state of the industry
A Telvent DTN panel last month discussed the current and future agriculture economic climate with a mostly non-ag investor audience during an online seminar “Agriculture: Bubble or Long-Term Investment Opportunity.”
The event was the first in a series discussing agricultural market and investment topics for a general audience. It covered short- and medium-term activities in ag commodities markets and how the increase in commodity prices and on-farm incomes is affecting agriculturally-focused equities, land prices and other investment areas.
Panelists discussed the outlook for food and fiber demand and identified signals to watch for that would point to an impending downturn. The panel included Telvent DTN senior analyst Darin Newsom; vice president of editorial Urban Lehner; ag meteorologist Bryce Anderson; executive editor Marcia Taylor; and ag policy editor Chris Clayton.
The Web seminar sprang from the rising interest in agriculture and ag-related investments by those outside of agriculture. DTN analysts and experts have been answering a growing number of phone calls, emails and conversations with investors wondering whether the interest in agriculture is another bubble ready to burst, or whether there is long-term potential in the industry.
“In general, we are guardedly bullish,” said Greg Horstmeier, DTN editor-in-chief, who moderated the panel. “The prospects of a growing middle class globally and booming population numbers in coming decades all point to a positive market for food and fiber and for the resources — land, technology, farm production — needed to produce increased amounts of food and fiber. But we know that any rising market can face setbacks. Part of our goal during this event was to talk through both the upside and downside potential. The main focus, though, was to supply basic knowledge to participants so that, if they are interested in agriculture, they have a start on asking the right questions.”
The event included approximately an hour of presentations, followed by 30 minutes of questions and answers. Questions ranged from short-term implications of slow progress of the current grains crops to which areas of the county held the best and least-favorable promise for long-term land purchases.
To download the recorded session, click here.
