11/23/2022
Here’s why agriculture is expected to grow:
Long-term
1. World population is growing so more food is needed.
2. Climate is changing, which affects the fertility of farmlands.
Short-term
1. Because of the Russia-Ukraine war, in Europe, fertilizer producers needing large amounts of natural gas are being forced to cut production. The situation is also difficult in China. Rising prices on fertilizers and their reduced availability may force farmers to reduce their use, which in turn will negatively affect crops.
2. The agriculture industry is recession and inflation-proof because people cut their costs on travel or luxury but not on food.
So the demand for food is growing and the supply is constrained. According to simple economic theory, these are prerequisites for price growth.
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