Imagine going into your local diner and ordering a hamburger.
A few minutes later, it gets delivered nice and hot, cooked just how you like it. You gobble it up.
But then the waitress drops off the check and—$237!? What the…
You might be thinking, “C’mon, Wayne. A hamburger will never cost that much.”
But given recent trends in the agriculture industry, this scenario is more likely than you might think.
Thankfully, some smart people are working to ensure it doesn’t happen.
And not only could they help keep your hamburgers affordable…
But they might put a few extra dollars in your pocket too.
A Lot of Mouths to Feed
Many factors could increase the price of your food:
The collapse of the dollar...
World War III...
A zombie-apocalypse.
But in all seriousness, what’s most likely to happen is a continuation of what’s already been happening:
More mouths to feed + less land dedicated to farming = higher prices.
You see, in 1960, 3 billion people lived on our planet. Today, there’s more than 7 billion.
Meanwhile, on a per capita basis, the amount of land dedicated to agricultural has fallen by nearly 50%.
But that’s not the worst of it...
500 Gallons of Water for a “Quarter Pounder”
The food industry is stuck using outdated and inefficient production systems.
For example, did you know it takes 1,799 gallons of water to produce 1 pound of beef?
In other words, producing a “quarter pounder” requires nearly 500 gallons of water. (And that doesn’t include the irrigation water that’s needed, the feed and the grassland for the cow, and so on.)
Add up an exploding population, decreasing farmland, and inefficient food production—and all of a sudden you’ve got $237 burgers.
But there’s still hope for burger eaters.
And it’s coming from an unlikely place...
Food Tech
Technology has revolutionized nearly every aspect of our lives:
From how we travel and get our news, to how we work and relax.
But it’s been slow to impact how we produce our food—until now.
You see, a number of technology start-ups are now focusing on how to make our food production systems faster, cheaper and more efficient.
I’m talking about everything from genetically-modified foods (which, contrary to popular belief, aren’t bad for you) to new farming software technologies.
These start-ups are in a sector called “AgTech”—short for Agriculture Technology.
For example, in 2009, a start-up called Solum created a technology that allowed farmers to quickly and accurately test their soil to determine its nutrient needs. This technology helps farmers reduce fertilizer costs and improve crop yields.
Just a few years later, Monsanto acquired the company for millions of dollars.
As more professional investors become aware of the profit opportunities in this emerging sector, money has started to flow:
In fact, AgTech start-ups raised nearly $5 billion last year—that’s nearly double the amount they raised the year before.
AgTech Investments on The Web
Up until recently, everyday investors like you would have been excluded from cashing in on an emerging trend like this.
Normally, you’d need to wait until these AgTech start-ups went public so you could buy their shares in the stock market.
But thanks to The JOBS Act, now you can invest in all start-ups before they go public, or before they get taken over by the likes of Monsanto.
One place to look for interesting AgTech deals is AgFunder. AgFunder is a special website known as a “funding platform,” a place where Investors like you can invest in private start-ups.
There’s just one drawback to AgFunder:
To invest in its deals, you need to be an “accredited” investor—someone with a net worth of at least $1 million, or annual income of at least $200,000.
That may sound disappointing, but I have good news for you...
AgTech Investments for All
As Matt explained yesterday, a new funding platform just launched:
It’s called Republic.
Republic is a spin-off of one of the first—and in my opinion, one of the best—funding platforms in the world: AngelList.
But unlike AngelList and AgFunder, Republic focuses on investments that everyone can invest in, regardless of their net worth or income.
One of its investments is an AgTech start-up called “Farm from a Box.”
The company describes its product as “the easiest and most efficient way to start and maintain a 2-acre planted farm.”
What’s fascinating about this product is that you can get the agricultural benefits of a 2-acre farm from a “box” the size of a shipping container.
As more people begin to realize the magnitude of our food production problems...
And as more people become interested in “off-the-grid” living...
A solution like Farm from a Box might find itself with a large target market.
To learn more about the opportunity on Republic, click here »
Happy investing.
Please note: Crowdability has no relationship with Republic, AgFunder, Farm from a Box, or with any of the platforms or companies we write about. Crowdability is an independent provider of education, information and research on start-ups and alternative investments.
Best Regards,
Founder
Crowdability.com
