In this article we will talk about the 10 Most Profitable Farm Business Ideas in 2021. You can skip our in-depth discussion on food industry trends and access the 5 Most Profitable Farm Business Ideas in 2021.
The agriculture industry is one of the biggest contributors to global GDP, as the sector feeds billions of people every day. According to The data According to the World Bank, the agricultural industry accounted for 4% of global GDP in 2018, and in some developing countries it can represent more than 25% of GDP. Aside from actual farming operations, agriculture or agri-food business refers to the manufacture and distribution of agricultural products such as farm equipment and supplies, machinery, and other farm-related services.
In a Research and Markets analysis, the global agri-food market is valued at $ 3.5 trillion in 2020. North America plays a vital role in the agri-food industry. The industry also contributes to the growth of the economy by employing approximately 1.4 billion people worldwide. Although the agriculture industry offers more stable income and growth than that of the volatile oil and gas sector, there are still a few key factors that could impact its growth, such as production volatility, change climate, supply chain and demand, demand and access to work.
Technology in the food industry
Data analysis, machine automation, management software, mobile phone applications and digital markets are some of the technological innovations that have contributed to the development of the agricultural industry according to a to study from the Graduate School of Stanford Business. The use of these technological trends in industry has resulted in smooth and efficient farming operations at reduced cost. Among all the innovative solutions, the digital marketplace has enabled profitable business-to-business transactions such as connecting large farms to local food stores and restaurants.
Artificial intelligence plays a major role in increasing productions by performing traditional tasks such as decision making, visual perception and speech recognition. One of the companies offering AI on farms is Colorado-based OnFarm Systems, which sees an average farm producing 4.1 million datasets per day, up from 190,000 in 2014.
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The most profitable farm business ideas in 2021
If you want to invest in the food industry and know the potential of the agricultural market, a company to consider is the American agricultural company Cargill Inc. It is one of the most successful companies in the agriculture industry. Minneapolis-based Cargill Inc. began its early days with a single grain flat house that William Wallace Cargill acquired in 1865. Over 150 years later, the company has grown into the world’s largest producer of agricultural products such as cereals, edible oil, cotton and biofuel. The company has expanded its activities into bio-industry, meat and poultry, pharmaceuticals, animal nutrition, metal and shipping. Cargill employs approximately 155,000 people working in 70 countries and delivers products to more than 125 countries. Cargill is one of the most successful companies in the agriculture industry with sales of $ 114.6 billion in 2020.
We have focused on farm business ideas that require small initial capital as well as those which require large capital but will provide you with high return. To give you the most accurate information on the 10 most profitable farm business ideas in 2021, we’ve ranked each agribusiness segment based on its global market value.
Let’s see the 10 most profitable farm business ideas in 2021 from number 10 /
10. Vertical agriculture
Market value: $ 3.9 billion
Number 10 on our list of the 10 most profitable farm business ideas in 2021 is an urban farming solution, vertical farming. Vertical farming is a method of producing fresh produce in urban areas that is more sustainable and faster (8 weeks) than conventional farming methods.
California-based Plenty Unlimited is one of the companies driving the growth of the vertical farming industry. The indoor vertical farming company received a total of $ 500 million in funding led by SoftBank Vision Fund 1 (OTC: SFTBY) and berry producer Driscroll’s to expand its product distribution.
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9. Precision agriculture
Market value: $ 7 billion
Precision Agriculture ranks 9th on our list of the 10 Most Profitable Farm Business Ideas in 2021. Precision Agriculture is a type of farming system that integrates IT solutions such as software to ensure that crops and soil are getting exactly what they need to thrive and produce their best.
Canadian technology company Farmers Edge Inc develops cloud-based digital solutions that provide monitoring data and outcome recommendations to grain and agriculture companies and food manufacturers internationally, primarily in North America, in Eastern Europe, Australia and Brazil.
Illinois-based Deere & Co. (NYSE: OF) with its John Deere brand. The company offers precision agricultural machinery, equipment and agricultural technology. The corporate net Sales in the first quarter of 2021 grew 19% to $ 9.1 billion, where the production and precision farming segment achieved net sales of $ 3.1 billion. DE shares have jumped 181% in the past twelve months.
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Market value: $ 8.3 billion
Beekeeping is one of the most profitable farming business ideas in 2021. Due to an increase in demand for honey and its by-products and a shortage of natural honey, commercial beekeeping farms have saw the light of day all over the world. The global beekeeping market is driven by the increasing demand for honey from various industries. Due to the negative health effects of sugar based sweeteners, honey is used as a healthier alternative for flavoring and sweetening agents in the food and beverage industry, providing equivalent demand growth for the global market. beekeeping.
BEESFREE Inc (OTC: BEES), based in Florida, is a technology company that provides food and nutritional supplements for the development of honey bees. The stock has gained 205% in the past twelve months.
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Market value: $ 10.9 billion
One of the most profitable farming business ideas in 2021 is the cultivation of microgreens. Microgreens, also known as green leafy vegetables, are small green vegetables that reach about 1 to 3 inches in height and have a variety of textures, flavors and colors. They are harvested early in their growth cycle and used to enhance edible toppings and salads, as well as other forms of dishes. It is easy to start a green microenterprise at home.
Fresh Origins, based in California, is one of the largest producers of microgreens and edible flowers in the United States.
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6. Vegan food
Market value: $ 14.4 billion
Making and selling vegan food ranks 6th on our list of the 10 Most Profitable Farm Business Ideas in 2021. There has been a growing demand for vegan food around the world due to the growing awareness of consumers to the consumption of food and ingredients. The growth of the vegan market is fueled by a growing public concern for the environment. Raising livestock and processing food contributes to greenhouse gases emitted into the atmosphere.
Beyond Meat Inc., based in California (NASDAQ: PARND) is a global manufacturer and distributor of plant-based meat protein products such as Beyond Burger, Beyond Fried Chicken, Beyond Beef and Beyond Meatball. The corporate net returned rose 36.6% to $ 406.8 million in 2020. The stock has gained 83% in the past twelve months.
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Disclosure: none. 10 Most Profitable Farm Business Ideas in 2021 was originally published on Insider Monkey.