“Buy land, they don’t make any more.” – Mark Twain
Investing in the agricultural sector can be a strategic and beneficial decision in the long term. Here are some of the main advantages of investing in this sector:
- Safe and stable investment: Agriculture is a sector far from speculation and volatility, with growth of more than 1.5% in the last two decades. It generates more than 14% of national employment and represents 19% of GDP in Catalonia.
- Low risk: The agricultural sector presents a very low risk for the investor due to its stability and growth, being considered strategic by the government and the EU.
- Significant economic weight: The Catalan agri-food sector is essential for the economy. The combination of agricultural activity, livestock and the food sector represents a combined turnover of 38,205 million euros. This is seven times more than pharmaceutical manufacturers and more than twice as many as the chemical industry or the automotive sector1.
- Contribution to GDP: The agri-food sector generates approximately 19% of Catalan GDP. In addition, the international market already accounts for 60% of sales, demonstrating its competitiveness and growth potential2.
- Foreign investment: Catalonia is attractive for foreign investment in this sector. Between 2017 and 2021, 36 foreign investment projects were carried out, attracting 595 million euros. This represents a growth of 16%3.
- Grants and technologies: The Department of Climate Action, Food and Rural Agenda offers grants for technology 4.0 and precision agriculture. These.
- Easy to amortize and profitable: Agricultural investment projects offer better margins of return and are easier to amortize in less time.
- Modern and innovative: The Catalan countryside has undergone a profound transformation, incorporating technological advances such as robots, sensors and specialized software. Private investment in R+D in the agri-food sector increased by almost 12% in 2018.
- Wide range of opportunities: In Catalonia we have multiple possibilities for investment in different agricultural, livestock and forestry products. The diversity of crops encourages innovation and the adoption of new agricultural technologies, improving productivity and sustainability.
- Recurring income and protection against inflation: New agricultural management techniques provide recurring income to the investor and diversification compared to traditional investments.
- Consolidation of the sector: A lasting phase of consolidation is expected in the Catalan agricultural sector, especially in the fruit and vegetable sector, providing capital for its growth and improvement in efficiency.
- Long-term structural growth: Driven by population growth, increased purchasing power, and demand for healthy, sustainable food.
- Basic need: Food is a fundamental need, so agriculture has great potential for growth as a key sector for economic development.
- Tangible Value: Agricultural land is a tangible asset that offers security and intrinsic value. Unlike other financial investments, land has real physical value. Over time, the value of agricultural land tends to increase, offering capital appreciation.
In summary, investing in the agricultural sector in Catalonia can be a smart decision, given its economic importance and the opportunities available. 😊🌱🚜
