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Agriculture Investment in a hungry world

ETF exchange traded funds come to invest in agriculture in a world crying out for more food.

As world population grows, so will the demand for food. It's easy to understand, especially when we learn that the world population increase from 6.6 million today, a United Nations estimated that 9 billion in 2050. It will be like adding three Chinas!

Another essential fact is that the population is much younger people and younger to eat more food than the aging of the population. Same now, meat consumption is growing ten times faster in the developing world than in what we consider the developed countries.

At the same time as there is a growing demand for products food that we see the amount of land available to produce the decrease of food. Why? Construction. People leave the countryside to the cities. They're leaving farms.

There is more bad news. Changing climatic conditions, desertification in many countries. The UN has released estimates that each year 12 million hectares of land to turn the desert and agriculture unproductive.

As an example of the seriousness of the problem, the nearest desert Beijing is 70 km northwest of Tian'anmen Square, the desert is in progress. It threatens to spread to the capital city of China in a few years if you can not stop.

Floods, earthquakes and drought contribute to the loss of food production.

So what does all this mean for investors? Opportunity and many it. It's time to start looking worldwide for companies involved with the land, fertilizers, seeds, transportation, agricultural equipment, irrigation and pharmaceuticals veterinarians.

Instead of trying to identify companies that will prosper, why not buy a basket of agricultural investments in the form of an ETF or ETN. For example:

PowerShares DB Agriculture Fund (DBA)

This fund composed of futures contracts on soybean, corn, wheat and sugar, with 25% is allocated to each product.

We hope that agriculture as recession proof as any investment available today. Although we should see a global recession people still have to eat and can be expected that the prices of agricultural products increased.

Here are some of your other options:

ETN Dow Jones-AIG Agriculture Total Return (JJA)
Dow Jones-AIG Grains Total Return ETN (JJG)
ETN Dow Jones-AIG Livestock Total Return (GC)
Market Vector – Fundación Agribusiness (MOO)

The following are all listed on the London Stock Exchange. You can purchase through an intermediary such as electronic commerce:

ETFs Agriculture ETF (AIGA-LSE)
ETFs Coffee ETF (COFF-LSE)
ETFs ETF corn (maize-LSE)
ETF ETFs Cotton (Cotner-LSE)
Grains ETFs ETF (IAGG-LSE)
ETFs Lean Hogs ETF (pork-LSE)
ETFs Live Cattle ETF (catla-LSE)
ETF ETFs Livestock (LSE Eagle)
ETFs Softs ETF (AIGS-LSE)
Soybean oil ETFs ETF (Soyo-LSE)
ETFs ETF soybean (Soybean-LSE)
ETFs Sugar Foundation (Suga-LSE)
ETFs Wheat ETF (WEAT-LSE)

There are important things to understand about these commodity investment. First, some are structured as ETFs. They keep a basket of stocks like a mutual fund. You will notice that others are TNCs. An ETN is a debt instrument the issuer promises to pay performance an index of commodity costs and costs less.

The tax treatment of capital gains and income may also be different for ETFs and ETN. Some of these vehicles give you exposure to products that invest in the futures market and shake the bond proceeds, while others are Actions.

Funds that use futures contracts receive "mark-to-market" treatment, ie on an annual basis of short-term gains are taxed at 40% in the short term and 60% long-term gains.

If nothing else, these investments will cover your personal use and the price of Groceries place.

About the Author

Mark Walters is a third generation investor and founder of
CreatingWealthClub.com
. For a limited time Mark is offering his big guide to finding hard money loans for real estate investing free.
Free guide to private money loans.
  http://www.FindPrivateMoney.info

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