Almonds are a worldwide agricultural asset. May offer health benefits can be used in production applications and ared consumed on a global scale. It's no surprise that almonds are an excellent investment. Almonds not only have a long harvest season, upwards of 240 days but they can also be preserved. The lack of need for refrigeration is another benefit.
The global almond market is expected to grow at a CAGR of 4.47% over the forecast period to reach a total market size of $12.073 billion by 2025. The growth of food has an overall positive impact on the market during the forecast period.
Alt-Text: Pile of almonds
California produces more than 80% of the world’s almond crop and all of the almonds used in the United States. As almonds are being adopted as a dietary solution, demand for almonds is growing.
Let's look at why almonds are a great investment asset to add to your long-term investment portfolio.
Almond Farming In California
While almonds are loved everywhere, they don't grow everywhere. They enjoy a specific climate, soil type and need just the right amount of water. California has the perfect climate and soil. In the 1700s, Spaniards traveled with the nut and ended up planting them where they landed in California. Over the past twenty years, almonds have taken up over 900,000 acres.
The state of California has more than 6,800 almond growers. Those farmers are responsible for being economically viable while being environmentally friendly. This combination provides some wonderful economic benefits.
Here are just a few of the economic benefits that California almond growers offer:
- 100,000 jobs have been created in California, Most of which are in the Central Valley
- $21.5 billion to California economic activity.
- $11 billion of California Gross State Product.
The growing process in California is a year-round process which includes all four seasons. In the spring, the almond trees bloom, and pollination begins. Summer is when the almonds grow, and once fall weather sets in, almond nuts can be harvested. Winter is dormant. Almonds like the NonPerils can be harvested early in the season.
Southern California weather has the ideal conditions for almond growing. That's how California alone can supply most of the world with this tasty treat. Many of these farms have been growing almond crops for generations. As farmland becomes harder to find, investors are turning to these farmers.
Alt-Text: Computer screen that shows an increasing graph.
Global Demand For California Almonds Is Growing
By now, we all know that almonds are awesome, but they have also become trendy over the past decade. In fact, the U.S. has seen almond consumption skyrocket 225% since 2005. That jump made it the most popular nut in America. And the global demand for almonds continues to increase as we learn more about their health benefits.
The Almond Board of California stated there was a 22 million pound increase in almond shipments between 2015 and 2016. And those numbers are expected to rise by at least three percent over the next ten years. Drought conditions in California may slow the planting expansion, but it is still expected to grow exponentially in the coming years.
Investing In Almonds
Even during challenging times such as the 2018/2019 harvest year. Almonds saw new records for domestic shipping. This boomed an investment in almonds, and it proved to be profitable. Almond harvests produced a demand for long-term investment options into farmland and other agricultural markets. However, farmland is declining, and those who already have their almond orchards will see more extensive benefits in future years.
Throughout history, investing in farmland has always been a good decision. These inflation hedges have shown an average return of more than 12% once the great depression was over. However, due to the unique needs of quality farmland and its high cost, it can prove difficult to invest in farmland.
Are you ready to start investing in farmland but aren't sure what the next step is? Crawford Park Farming AG has the experience and the knowledge to help you begin investing for the future of farming. Contact them today!
There are many ways that you can invest in farmland. Crowdfunding is now an option. Owning and running a farm can be rewarding, but it comes with the challenges of needing large amounts of labor and expertise. A more traditional route to invest in almonds is to invest in ETFs or REITs as a farmland investor.
Investing in almonds is easy if you leave the actual farming to the farmers. However, your investment helps them grow their operation by purchasing new land or improving their harvesting and growing methods.
The best way to start investing is to begin investing in almond farmland, you can help these farmers grow their farms through land expansion or upgrading their equipment or harvesting methods. Investing in this way allows you to earn passive income and also includes some pretty cool tax benefits.
Alt-Text: a pile of almonds around a bottle of almond oil.
California Almonds Are The Future Of Nuts Investing
According to the Wall Street Journal, "almonds are shaping up to be a more lucrative endeavor for pension funds, endowments, and other institutions with very long-term investment horizons."
This can mean some good news for investors. Almond Board of California, at one point, made a $5.9 million investment into research and development for the long-term profit potential of the almond industry. That money has currently funded as many as 85 research projects.
As land continues to be sold, farmers are still expected to produce record-setting amounts of almonds for consumers. The almond industry is only expected to grow.
Why Invest In Almonds?
But what do all of those numbers really mean for investors? Well, if you are an investor that is looking for some low-risk, long-term investments, the almond industry is for you. It has a high potential opportunity for high rewards, without a lot of the volatile risks that come with stocks.
In case the minimal risk wasn't enough, here is another reason why you should invest in the farmland category. Back in 2018, the almond market held an incredible value of just over six billion dollars. If rates continue along with the same trends, by 2025, we could easily see the almond industry jump by 4.8% and reach nine billion dollars.
Almonds have investment potential that is outside of just the sales of the nuts. Some other products and industries benefit from the processing of these tree nuts. Also, with good farmland as a secondary investment, there is unlimited investing potential.
A single acre of perfect land can run between five and six thousand dollars. Whereas if you develop that land that's producing almonds, you can easily see a return of twenty or thirty thousand dollars per acre.
Getting Into Almond Investment
It's clear to see the potential that the almond market has to offer. However, turning that potential into profit isn't always easy, especially if you are not a trained investor. There are plenty of opportunities within the almond business, yet the farming industry is complex.
The best bet when it comes to investing in almonds is to have experienced help to guide you through the process to find the best investments for you and your portfolio. Otherwise, you may find yourself buying underdeveloped land and taking a crash course on how to grow almonds.
The other option that makes investing in almonds easier is to invest in agricultural investment. ETFs are the perfect starting point that still carries a little more security of investing in farmland.
Crowdfunding is another great investment option. Through crowdfunding, there are plenty of ways to generate profits. This process is more personal and tangible than some other investment types.
Conclusion- Invest With Land Income
Overall, farmland investments have been profitable and continue to show a future of good returns. Both the national and global markets watch for farmland and show increases in the almond segment. Even better, there seems to be no sign of these markets slowing down.
The volume of almonds that California alone produces and ships worldwide is a staggering number. Yet even those numbers still hold strong despite drought and other hardships like the COVID-19 pandemic.
Agricultural real estate has emerged and a compelling investment opportunity for a long-term investor.
No matter how you choose to invest in almonds, it's always a perfect pick.
So, are you ready to start investing in Almonds? Land Income is your go-to for investing in an inflation-proof investment. Start growing your profit today by calling Land Income
