America is a global food basket and yet the country’s agricultural economy is relatively struggling. Are things going to change for the better soon? Let’s look at the latest trends to see what the future may hold:
Promising Food Demand Growth
Barring global catastrophes, the world’s population is going to balloon to 8.9 billion by 2050. With so many mouths to feed, the agricultural sector’s plate is going to be full. However, demand isn’t going to be the biggest problem of farmers; cost reduction is. Replacing old farming equipment is one of the best solutions to increase efficiency and production and decrease downtime and maintenance.
Future Interest Rate Hike Scare
Last year, the Federal Reserve voted to increase interest rates from 0.25% to 1.50%, which is expected to further head north this 2018. Apart from paying more to loan money, borrowing farmers might have to use larger pieces of land as collateral.
Don’t fret, though. If you look hard enough, farmmortgageloan.com says that you can find competitive AG land interest rates and lenders with not so demanding requirements. Shop around and make a strong case for your loan request to get the most favorable deal.
Fast-Pace Agritech Evolution
Agritech has been on fire for the past few years, and it’s not showing signs of slowing down. The burning entrepreneurial spirit of tech startups is fueled by growing investor interest. Innovators are constantly pushing the limits of science to come up with fresh methods to improve crop and boost livestock yield.
Generational Practice Transformation
As Millennials take over the agricultural sector, the industry is bound to be more open to innovations. Unlike older farm owners who can be rather laggard, the younger people in charge are incorporating new ideas into time-honored agricultural norms with emphasis on modern technology adoption.
Keeping tabs on the latest industry’s trends isn’t only a fun way to witness how the agricultural sector evolves in the 21st century. It’s also good practice to improve every aspect of your farming business, from machine optimization to logistics.