Profiting From Rising Food Prices

"In the future, it will be farmers driving Maseratis, not stock brokers." Jim Rogers

There are currently 3 main factors driving food prices higher...

1. Billions of people going from developing countries (Asia-Africa) to the middle class.
2. Central bank currency printing is causing price inflation.
3. Population growth is growing rapidly.

Food is highly resource intensive, it takes a lot of time and investment. Planting crops takes the skill of a seasoned farmer, anyone who has ever planted a garden knows this, those that haven't just know that most gardens fail for the first few years. This is one of the reasons Jim Rogers so many times has pointed out that we are losing farmers in the world and the farmers themselves aren't being replaced. Which will only add to the problem of growing food demand. The average age of a U.S. farmer is 60, in Japan it's 66, and in Australia it's 58. According to Rogers, in the next decade as farmers near 70 we could be looking at huge shortages in agriculture.

Rogers goes on to say that farming has been a disaster for 30 years and that is why we don't see younger farmers, it has just been a horrible business, which is why we have huge shortages developing in agriculture and great fortunes are going to be made by the people who address those problems.

Even without population growth, the shift of billions going from rural to urban is creating a demand for more food, better food, and specifically more beef. This year we saw a mass liquidation of animals because of high grain prices due to the drought that we have seen all across the U.S., China, and Russia. It is important to remember that it all starts with the farmer, as Jim Rogers suggests, don't get an MBA, go get a farming degree.

Now we analyze the insanity of the FED almost on a weekly basis, so let's just use a chart for the central planners' connection to rising food prices. The FED has said that we will live in a zero interest rate policy (ZIRP) world for at least another 2 years, so you know that means we are realistically looking at another 5-10 years. They just started quantitative easing 3 (QE3) so below we have a complete chart of QE2 compared to commodity prices.

Connecting the dots is easy, QE adds to food prices rising.

Preparing and Profiting

75 million people a year are moving from rural to urban and global population is rising fast with a projection of 9 billion people by 2050.

When it comes to profiting from all of this inflation, rising food prices, shortage in agriculture, and even civil unrest throughout the world, we suggest investors start off with a core position in physical gold and silver. Buy long term food shortage in case of any kind of global shock (remember oil prices will only add to the problem) as well as starting your own garden. FutureMoneyTrends.com strongly advocates our members to become as independent as possible. For those looking for profits, the biggest profits will come to those who own farmland, so either own it directly or through a good publicly traded company. If you are going to buy direct, we suggest looking at South America where farmland is cheap. For those looking for a publicly traded company, look at the fertilizer companies, this gives you exposure to all the core crops rather than just one.

It is important to alter your investments, life, and future plans to both prepare and profit from this trend.

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