In recent years we have seen an increased volatility in equities and bonds. The market has not been stable for a while with interest rates at historical lows; this instability has resulted in incredibly poor returns for investment projects. In a stark contrast to this, the market of Alternative Investments has been growing from strength to strength. The soft commodity market has been showing year on year price increases and giving investor’s profits and returns that far outperform those that we are seeing on the traditional investment market.

One specific soft commodity which has been showing incredible prospects is that of rice. In a population of 7 billion, 3.6 billion RELY on rice as their staple. The world cannot physically meet this demand for rice. More food than ever is needed to be produced from less land than ever and this low supply and high demand is creating one of the most lucrative markets in the world.

We have seen a population boom in the last few years. Our population has grown from 2.5 billion in 1950 and will continue to grow to 9 billion by 2050. Over this century the population has nearly quadrupled while the ability to grow food has now not just remained stagnant but has also seen various restrictions.

In recent years we have seen a downturn in agriculture. This is due in part to the population boom. With such a rise in population this influx of people has diverted farming land to be used for mass urbanisation. The farmable areas we do have are struggling to meet the demand and need to be producing far more than they currently are. The director of the Food and Agriculture Organisation Jacque Diouf stated:
‘The combined effect of population growth, strong income growth and urbanisation…is expected to result in almost doubling of demand for food, feed and fibre….Agriculture will have no choice but to be more productive’

Yet agriculture is finding it hard to be more productive. Climate change and natural disasters have also contributed to a downturn of production. Previously fertile land has faced problems from changing conditions and we have seen examples of whole areas of production being wiped out by such disasters as the Thailand 2010 floods. The fact is the world needs more rice and more ways in which to grow it.

This need for food is pushing the alternative investment market to great heights. The simple fact is that global demand is outstripping supply and where farmers cannot afford to invest in their own land; private investors are needed to boost food production whilst making a huge profit.

Capital Alternatives; market leaders in Alternative Investments are working with Agri Capital to help address the deficit of rice in the world. An Investment project in the soft commodity of rice encompasses a lot more than you would first imagine.

Agri Capital is based in Western Africa, in Sierra Leone. The conditions in this area are perfect for rice production; with a rainforest climate the land is actually farmable 365 days a year. For this very reason the investment has projected returns of 15% yet last harvest achieved 16.2% and are set to rise.

This project has been running for a number of years and has been well received in the local communities, gaining recognition from the Sierra Leone government. This project is so popular not only due to the high returns investors are seeing, but also due to the socially responsible aspect which Capital Alternatives instils in all their projects.

The area in which the project operates is benefitting greatly from the presence of Agri Capital. The purchase of farmable land creates jobs for local residents, creating a local market with further employment. Added to this Agri Capital supports healthcare and education and actually sets aside 60 metric tonnes of rice per year to give to the local village free of charge. This project therefore is more than welcome in the areas in which it operates.

With this project investors actually purchase a plot of land. This further safeguards their investment by also investing in a physical commodity, the tangible asset of owning the title to your own rice field diversifies away from any issues the changeable market may face.

Owning a title to your land has other benefits as well. By holding the title to your land you will actually see capital appreciation in that land. In fact there is an immediate uplift in the value of your land once farm ready, almost doubling in value with an annual appreciation in the land of 7% per year. The land is your asset until you decide to sell it on, which will be fully assisted by Agri Capital so that exiting the project is simple and straightforward. There is also a full money back guarantee in place so there is no safer, more profitable or more ethical investment available anywhere.