As a tennis enthusiast, I’ve always been keen on staying healthy. This drive to stay fit and live a long life only grew stronger when I became a parent and when the pandemic struck. I bet many of you share these priorities and aim to lead a healthy lifestyle. A significant part of this health journey begins with what we eat. It’s no wonder that the demand for healthy foods is skyrocketing in the U.S. If you’re interested in capitalizing on this growing demand, investing in farmland might be a good option.
FarmTogether, a top-notch farmland real estate investing platform, offers some insights into the rising demand for healthy foods, the growth of permanent crops, and the thriving farmland regions in the U.S.
At the beginning of 2022, about 44% of U.S. adults made diet-related resolutions, almost triple the number from the previous year. This trend of setting health goals isn’t just a New Year’s fad. The CDC reports that around 160 million Americans are dieting at any given time during the year. As people shift towards healthier lifestyles, the demand for nutritious food products is increasing. This presents a unique opportunity for farmers and farmland investors.
Several global factors are driving the demand for healthier diets and lifestyles. The COVID-19 pandemic has made us more aware of our overall health. Before the pandemic, Americans consumed about 21% of their calories at restaurants, where the nutritional quality is often lower. However, with the lockdowns, eating at home became the norm, and the demand for products that boost the immune system increased.
The growing global middle class is also contributing to the demand for healthier foods. By 2030, the global middle class is expected to reach 5.3 billion people, up from 4 billion in 2021. This demographic, which accounts for 68% of total consumer spending, spends over $6,000 per year on meals. With higher disposable income and access to produce, they are buying more fresh fruits and vegetables.
Technology is also playing a role in making healthier food more accessible and affordable. Online grocery delivery services are bringing more fresh fruits and vegetables to lower-income neighborhoods. On-farm technological solutions are making farming operations more efficient.
As more people prioritize healthier foods, permanent crops like fruit or nut trees that produce for many seasons have seen significant growth. For instance, global tree nut production, a nearly $39 billion industry, increased 15% over the past year and 65% over the past decade.
Investing in the right crop is only half the challenge, as different geographical areas have particular strengths for specific crops. The Pacific Northwest, Southwest, South Central, and California are some of the thriving geographical locations for healthy foods in the U.S.
As our health standards change, so does our diet. This has had a direct impact on the consumption of healthier foods, which in turn has positively impacted the value of the geographical locations that produce these crops. This presents several financial investment opportunities for investors looking to capitalize on the health craze.
FarmTogether is making owning a slice of prime U.S. farmland affordable and accessible, a privilege that was once only available to a handful of institutions and billionaires. If you’re interested in learning more, visit FarmTogether.com and see if farmland is a good fit for your portfolio.
In addition, I’m allocating new capital toward the Innovation Fund, which invests in Artificial Intelligence & Machine Learning, Modern Data Infrastructure, Development Operations (DevOps), Financial Technology (FinTech), and Real Estate & Property Technology (PropTech). About 35% of the Innovation Fund is invested in artificial intelligence, which I’m extremely bullish about. The investment minimum is only $10, as Fundrise has democratized access to venture capital as well.
