Australian Agricultural Sector Make a Profit

Michael Whitehead, vice president of food and agribusiness research with Rabobank’s New York arm, said possible negative pressure on agriculture could include a drop in consumer demand, however this may be offset by ongoing global population growth.

There are also other factors that would contribute to the relative strength of the Australian agribusiness sector, Whitehead said.

For example, a reduction in the use of fertilizer by some farmers may see fertilizer yields drop. The risk of drought in China and political and climactic problems in South America may also cause a fall in the production of grain, which would see upward pressure on prices.

“The Australian agricultural sector will also benefit from the likely continuing lower currency, with the US dollar expected to stay strong,” Whitehead said.

Whitehead, who is currently visiting Australia, said while 2009 would be tough, Rabobank believes the long-term fundamentals for farmers with good operations remain sound.

Whitehead added that global demand for grain from the bio-fuels industry – particularly under the new US administration – shows few signs of abating.

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Invest Your Money, but How?? read this

How to invest $20
Let's start with $20. We're going to assume that you've already paid off any high-interest debt and that you have some money stashed in a safe place (like a savings or money market account) that you can get to quickly in case of an emergency expense. Now you find yourself with a little extra dough, and you want to begin investing for your future.

Is it even worth it to invest such a pittance?

Heck yeah it is! One of the best ways to invest small amounts of money cheaply is through Dividend Reinvestment Plans (DRPs), also known as Drips. They and their cousins, Direct Stock Purchase Plans (DSPs), allow you to bypass brokers (and their commissions) by buying stock directly from the companies or their agents.

More than 1,000 major corporations offer these types of stock plans, many of them free, or with fees low enough to make it worthwhile to invest as little as $20 or $30 at a time. Drips are ideal for those who are starting out with small amounts to invest and want to make frequent purchases (dollar-cost averaging). Once you're in the plan, you can set up an automatic payment plan, and you don't even have to buy a full share each time you make a contribution.

Drips may be one of the surest, steadiest ways to build wealth over your lifetime (just make sure you keep good records for tax purposes). For more details on Drips, see "What if I can only invest small amounts of money every month?"

How to invest a couple of hundred bucks
So you've weeded out all the wooden nickels from your spare-change jar and have tallied up a few hundred bucks. Instead of blowing it on snack food and Elvis memorabilia, consider investing it in an index fund (the only kind of mutual fund Fools like). An index fund that tracks the S&P 500 is your ticket to an investment that has traditionally returned about 10% per year.

Some index funds require as little as $250 for you to call yourself an owner. This low minimum is usually restricted to IRAs (Individual Retirement Accounts). After your initial investment, you can add as much money as you like, as frequently as you like, with no additional costs or commissions. You purchase index funds directly from mutual fund companies, so there are no commissions to pay to a middleman.

If you have a few hundred dollars to start with, then this is a great, low-cost way to establish an instant, widely diversified (500 companies!) portfolio.

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