10 Most Profitable Agricultural Business Ideas in 2021
In this article, we are going to talk about the 10 most profitable agricultural business ideas in 2021. You can skip our detailed discussion about the trends in the agribusiness industry and go to the 5 Most Profitable Agricultural Business Ideas in 2021.
The agriculture industry is one of the major contributors to the world’s GDP as the sector feeds billions of people every day. According to the data from the World Bank, the agriculture industry accounted for 4% of the world’s GDP in 2018, and in some developing countries, it can account for more than 25% of GDP. Aside from the actual farm operations, agricultural business or agribusiness refers to the manufacturing and distribution of agricultural products such as farm equipment and supplies, machines, and other farm-related services.
In a Research and Markets analysis, the global agribusiness market is valued at $3.5 trillion as of 2020. North America plays a vital role in the agribusiness industry. The industry also contributes to the growth of the economy by employing approximately 1.4 billion people around the world. Although the agriculture industry offers more stable revenue and growth than that of the volatile sector of oil and gas, there are still a few key factors that could impact its growth such as volatility in production, climate change, supply and demand chain, demand, and access to labor.
Technology in the Agribusiness Industry
Data analytics, machine automation, management software, mobile phone apps, and digital marketplaces are some of the technological innovations that have helped in the development of the agricultural industry according to a study from the Graduate School of Stanford Business. The use of these technology trends in the industry has resulted in seamless and efficient farm operations at a reduced cost. Of all of the innovative solutions, the digital marketplace allowed 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 in farm operations 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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Most Profitable Agricultural Business Ideas in 2021
If you are interested in investing in the agribusiness industry and want to know the potential of the agriculture market, one company to look at is the American agriculture firm, Cargill Inc. It is one of the most successful companies in the agriculture industry. Minneapolis-based Cargill Inc. started in its early days with a single grain flat house William Wallace Cargill acquired in 1865. Over 150 years later, the company has become the world’s top producer of agricultural products such as grains, edible oil, cotton, and biofuel. The company expanded its business to bio-industrial, meat and poultry, pharmaceutical, animal nutrition products, metal, and shipping. Cargill employs about 155,000 employees working in 70 countries and delivers products to over 125 countries. Cargill is one of the most reputable companies in the agriculture industry with revenue of $114.6 billion in 2020.
We focused on agricultural business ideas that require a small amount of initial capital as well as those that require a large amount of capital but will provide you with a high yield of income. To give you the most accurate insights about the 10 most profitable agricultural business ideas in 2021, we ranked each agribusiness segment by its global market value.
Let’s see the 10 most profitable agricultural business ideas in 2021 starting from number 10/
10. Vertical Farming
Market value: $3.9 billion
Ranking 10th in our list of the 10 most profitable agricultural 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 turnaround time (8 weeks) than conventional farming methods.
California-based Plenty Unlimited is one of the companies that drives growth in the vertical farming industry. The indoor vertical farming company has received total funding of $500 million led by SoftBank Vision Fund 1 (OTC: SFTBY) and berry producer Driscroll’s to expand its product distribution.
9. Precision Farming
Market value: $7 billion
Precision Farming ranks 9th in our list of the 10 most profitable agricultural business ideas in 2021. Precision agriculture is a type of farming system that integrates information technology solutions such as software to ensure that crops and soil get exactly what they need to thrive and produce at their best.
Canadian tech company Farmers Edge Inc develops cloud-based digital solutions that provide monitoring and outcome-based data recommendations to grain and crop companies and food manufacturers internationally mainly in North America, Eastern Europe, Australia, and Brazil.
Another company that offers precision farming technology is Illinois-based Deere & Co. (NYSE: DE) with its John Deere brand. The company is offering farm machines, equipment, and precision agricultural technology. The company’s net sales in the first quarter of 2021 were up 19% to $9.1 billion where the production and precision agriculture segment had net sales of $3.1 billion. Shares of DE surged 181% over the last twelve months.
Market value: $8.3 billion
Apiculture is one of the most profitable agriculture business ideas in 2021. Due to a rise in demand for honey and its by-products and a scarcity of natural honey, commercial beekeeping farms have sprung up all over the world. The global beekeeping market is being driven by the growing 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 apiculture market.
Florida-based BEESFREE Inc (OTC: BEES) is a tech company that offers food and nutritional supplement for developing honey bees. The stock has gained 205% over the last twelve months.
Market value: $10.9 billion
One of the most profitable agriculture business ideas in 2021 is cultivating microgreens. Microgreens, also known as green leafy vegetables, are small vegetable greens that grow to be around 1–3 inches tall and have a variety of textures, flavors, and colors. They are harvested at the beginning of their growth cycle and used to enhance edible garnishes and salads, as well as other forms of dishes. One can easily start a microgreen business at home.
California-based Fresh Origins is one of the largest microgreens and edible flower producers in the US.
6. Vegan Food
Market value: $14.4 billion
Ranking 6th in our list of the 10 most profitable agricultural business ideas in 2021 is the manufacturing and sales of vegan food. There has been an increasing demand for vegan food globally due to the increasing awareness of consumers in food and ingredients consumption. The growth of the vegan market is being fueled by a rise in public concern about the environment. Breeding of livestock and food processing contributes to the greenhouse gases emitted in the atmosphere.
California-based Beyond Meat Inc. (NASDAQ: BYND) 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 company’s net revenue increased 36.6% to $406.8 million in 2020. The stock has gained 83% over the past twelve months.
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Disclosure: None. 10 Most Profitable Agricultural Business Ideas in 2021 is originally published at Insider Monkey.