For investors looking to put their money in agriculture, there are basically two ways. Either you invest in farmland or in agribusiness.
Buying farmland is the traditional way. It is similar to starting your own company (well, it is in fact starting your own company). You buy a piece of land, decide what to grow, find people to buy your crops, and in this way, you try to make a profit. It is a business that has been around for thousands of years. There is nothing wrong with it at all.
This post however will focus on investing in agriculture by the agribusiness route. I will do that for a couple of reasons. First of all, for a small time investor, buying farmland is really not an option, you need a large amount of capital to buy land, machines, seeds, etc.. Furthermore, it involves a large number of management decisions, everyday in fact you will be faced with numerous choices to make. It is really not something to do part-time.
Investing in agribusiness is different, you just need to buy and sell stocks. You can start out with limited capital and you really do not need more than an internet connection.
This is not the same as saying that making a profit is easy too. You need to educate yourself on the companies, the trends, the risks. Everything you would do when you invest in any kind of stock.
Is it a good idea to invest in agribusiness now? I will let you decide on that after you have made your research. However, it is worth pointing out that these businesses have done well in recent years. Strong economic growth in populous countries such China, India, and Brazil, has made demand for food products grow rapidly.
This is not a guarantee that the stocks will continue to do well.
If you are interested in investing in agriculture, I recommend you do your research, find the right companies, and find the right stock broker.