Monday, February 8, 2010

Jim Rogers: Torrid Agriculture Prices

Jim Rogers: Agriculture Prices

The price of food and agricultural goods should continue to rise for years into the future, according to commodity guru Jim Rogers, as "The inventories of food are the lowest not in years but in decades. Supply is going to remain down since we have serious production problems. At the same time people are eating more and we are burning some of our foods as fuels.”

This combination won't change unless governments quit the debacle of using corn to turn into ethanol. That at least would keep the prices of corn relatively in check and available to livestock and human beings at a decent price. If not, corn itself and anything it feeds will increase in price as a result.

Rogers has said numerous times in the recent past that those that own the fancy cars in the next 10 to 20 years will be those who turn in their briefcases for farming. I think he's right!

Still, there are numerous ways you can play agriculture, from those providing equipment and seeds to to those providing the fertilizers and other essentials to operate the business.

Water is another key thing to look at over the next years as populations in many areas of the world continue to grow exponentially, with world population growth estimated to be at over 9 billion by 2050.

Jim Rogers: Agriculture Prices


John Ryskamp said...

Perhaps, but watch out. As liquidation proceeds, it is affecting agriculture just as it did during the Depression. Prices don't necessarily go up because the supply chain breaks down. You still have to have money to buy anything. There is no natural "floor" of demand to produce a captive market. It is a mistake to think that agriculture somehow avoids the pernicious effects of Mellonesque liquidation.

Anonymous said...

I like Jim Rogers, but he has been saying this about agricultural products since at least 2004 and if you invested then you would have lost money, like me! Look what happened since 2008 to agricultural products, they will suffer again in the next debt crisis. I think gold or silver is the only way to go.

Anonymous said...

Keep posting stuff like this i really like it

Anonymous said...

nice post. thanks.