The Pros and Cons of Agribusines Essay -- Agribusines

I. Introduction Agriculture has long been a topic of interest and will continue due to the necessity of farming to supply a basic fundamental need – food. Farming is considered a stable economic activity as it provides products, jobs, and supplies to the local community as well as supporting the global infrastructure. The recent global economic conditions have caused an array of structural changes within the global infrastructure. These structure changes have directly impacted banking institutions, housing, lending processes, farming sectors, and privatization. The declining housing market, corrupt banking/financial institutions, and decline in stable investments have increased the need to find economically viable ways to invest. Investors look at markets for sustainability and lucrative return on investments (ROI) while attempting to minimize risks. Naturally – food and water have become commodities but investors are still interested in returns and farming losses are often offset by federal subsidies and crop insurance (Lynch & Bjerga, 2013). Corporate investment, government regulations, and privatization become issues while trying to improve ROI. The recent water wars are evidence of control issues and an attempt to purchase natural resources. Investors are now looking at ways to promote diversity and sustainability to their clients while countries are grappling to ensure food security. Farmland investments involving large-scale acquisitions are lucrative for investors. Large-scale acquisitions of farmland in Africa, Latin America, Central Asia and Southeast Asia are now being sought by international investors and have garnered global attention (Cotula, Vermeulen, Leonard, & Keely, 2009). Farming, agriculture,... ...ences (continued) Laxman, L. & Abdul, A. H. (2011). GMOs, safety concerns and international trade: developing countries’ perspective. Journal of International Trade Law and Policy, 10 (3), 281-307. doi: 10.1108/1477002111116553L Lynch, D. J. & Bjerga, A. (2013, September 9). Taxpayers turn U.S. farmers into fat cats with subsidies. Bloomberg. Retrieved from http://www.bloomberg.com/news/2013-09-09/farmers-boost- revenue-sowing-subsidies-for-crop-insurance.html Lynch, D. J. (2013, September 11). Fraud stealing $100 million shows flaws in U.S. crop insurance. Bloomberg. Retrieved from http://www.bloomberg.com/news/2013-09-11/fraud-stealing-100- million-shows-flaws-in-u-s-crop-insurance.html Sherrick, B. J., Mallory, M. L. & Hopper, T. (2013). What’s the ticker symbol for farmland? Agricultural Finance Review, 73(1), 6-31. doi: 10.1108/00021461311321285