As emerging economies become more urbanized, the need for resources such as food grows along with the need for better diets, which affects the need for more farmland. Furthermore, the demand for farming equipment and seeds is affected. [ETF Spotlight: Market Vectors Agribusiness ETF (MOO)]
The latest global economic slowdown has taken the S&P Global Agribusiness Index, an index of 24 of the globe’s largest agriculture companies, down 16% this year, according to the Barron’s article. However, the need to feed the constantly growing and hungry world will support an agriculture investment for the long-term, according to the bullish view.
PowerShares DB Agriculture Fund
Tisha Guerrero contributed to this article.