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Motley Fool Global Gains / GGS: Potash Corp.


Subject:  Big Money To Be Made In Agriculture Date:  3/14/2012  9:28 AM
Author:  Starrob Number:  18 of 50

"While it is true that the fertilizer industry has been pummeled since their summer highs, I think this provides an excellent buying opportunity. The world population has now surpassed 7 billion people, and everyone needs to eat. To put in perspective just how fast the world is growing, consider this; there are more users on Facebook (FB) (750 million and counting) than there were people on earth 200 years ago. That rate of growth is absolutely astounding, and is unlikely to decline anytime soon.

There are two reasons that I think the farming industry, and more specifically fertilizers, will see the greatest production increase. First, just consider demand. As more and more people begin to occupy the world, it's going to lead to higher demand for food and other crops. This only makes sense. If one looks at other parts of the world, food is starting to have monetary value and is being used in a bartering fashion. This becomes evident when countries such as India begin trading rice with Iran in exchange for oil. With the increased food demand, farmers are also going to have an increase for certain things, mainly equipment and fertilizers."

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