Agriculture is a Recession Proof Business

[Jasmine]

Agriculture is one of the important contributions to the global economy; it feed billions of people every day.

In 2018 agriculture contributed to 4 percent of the global GDP according to the world bank. In underdeveloped nations, agriculture contributes to over 25 percent of the GDP

Agriculture business is manufacturing and selling of agriculture produce such as farm equipment and supplies, machinery and other farm related services as well as real farm activities (farming).

Agriculture business has a low failure rate, it is said 88 percent of agriculture businesses are destined to become successful. It is also a recession proof business because no matter the prices, people need to eat to live, therefore, people will always buy food and farmers always buy supplies for their farms.

What kind of agriculture business you can start.

You can invest in farm and start farming.

You can sell farm produce.

You can sell farm supplies.

You can sell farming related sell services.

 

[sincerem]

My parents have been farmers in the last 38 years, and I have understanding about rearing of crops. But nowadays I don't devote time to farming, because the system my parents are using is outdated. If I want to practice farming again, I'll advance and operate with machinery to facilitate or speed up farming and not kind of slow farming that takes whole lot of man power.

Their is no doubt to what the OP said, it is hard to experience failure in agriculture if you truly understand the basics. If you want to based on selling agricultural supplies and know how your targeted audience are, you'll be on the profit side. Farmers are in-demand of this supplies nowadays to ease the stress of using the old system of farming and make it faster during farming activities. I will give farming second thought when I can afford all the modern equipments to make the operations be at ease.

 

[Mika]

I don’t think Agriculture is recession proof business. Just like any other business and investment areas, agriculture is also affected during the recession.

When there is a recession price of raw materials increases. That’s because there is inflation during recession and in order to control inflation government increases interest rate and when the interest rate increase, the production cost of everything increases.

Agriculture can have adverse effect due to increase in fuel price, increase in the cost of fertilizer, seeds, pesticides, insecticides, farm utilities (tractors, for example), etc. All of these things will happen during inflation.

Then there is also a cost of maintaining the produce. The produce can be easily damaged, therefore, there is high cost of maintaining the storage.

Having said that there will always be demand for food no matter the economic situation and it is very unlikely that agriculture business will fail. This s the reason why software giant like Bill Gates is buying farmlands.