The Pros and Cons of Agribusines Essay -- Agribusines

I. IntroductionAgriculture has long been a topic of interest and will continue due to the destiny offarming to supply a basic fundamental need food. Farming is considered a stable economicactivity as it provides products, jobs, and supplies to the local community as well as supportingthe global infrastructure. The recent global economic conditions have caused an array ofstructural changes within the global infrastructure. These structure changes have straightimpacted banking institutions, housing, lending processes, farming sectors, and privatization.The declining housing market, corrupt banking/financial institutions, and decline in stableinvestments have increased the need to find economically operable ways to invest. Investors lookat markets for sustainability and lucrative return on investments (ROI) while attempting tominimize risks. Naturally food and water have get commodities but investors are stillinterested in returns and farming losses are often offset by federal su bsidies and crop insurance(Lynch & Bjerga, 2013). Corporate investment, government regulations, and privatizationbecome issues while trying to improve ROI. The recent water wars are evidence of controlissues and an attempt to purchase natural resources. Investors are now looking at ways topromote diversity and sustainability to their clients while countries are grappling to ensure foodsecurity. Farmland investments involving large-scale acquisitions are lucrative for investors.Large-scale acquisitions of farmland in Africa, Latin America, Central Asia and Southeast Asiaare now being sought by international investors and have garnered global attention (Cotula,Vermeulen, Leonard, & Keely, 2009). Farming, agriculture,... ...ences (continued)Laxman, L. & Abdul, A. H. (2011). GMOs, safety concerns and international trading developing countriesperspective. Journal of International Trade Law and Policy, 10 (3), 281-307. doi10.1108/1477002111116553LLynch, D. J. & Bjerga, A. (2013, Septemb er 9). Taxpayers turn U.S. farmers into fat cats with subsidies.Bloomberg. Retrieved fromhttp//www.bloomberg.com/news/2013-09-09/farmers-boost-revenue-sowing-subsidies-for-crop-insurance.htmlLynch, D. J. (2013, September 11). Fraud stealing $ hundred million shows flaws in U.S. crop insurance.Bloomberg. Retrieved fromhttp//www.bloomberg.com/news/2013-09-11/fraud-stealing-100-million-shows-flaws-in-u-s-crop-insurance.htmlSherrick, B. J., Mallory, M. L. & Hopper, T. (2013). Whats the ticker symbol for farmland? AgriculturalFinance Review, 73(1), 6-31. doi 10.1108/00021461311321285